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From the perspective of management, discuss how you think the investor ratios calculated will affect external stakeholders behavior. Ratios Liquidity Ratios The Home Depot Competitor
From the perspective of management, discuss how you think the investor ratios calculated will affect external stakeholders behavior.
Ratios | ||||||
Liquidity Ratios | The Home Depot | Competitor | Industry | |||
Short-Term Debt Paying Ratios | 2019 | 2020 | 2021 | |||
Working Capital | 8850.00 | 8013.00 | 12042.00 | 392 | 1.17 | |
Current Ratio | 1.0781 | 1.2293 | 1.0130 | 1.02 | 1.6 | |
Acid Test Ratio | 0.2307 | 0.4700 | 0.2011 | 0.13 | 0.9 | |
Cash Ratio | 0.1161 | 0.3408 | 0.0817 | 0.07 | 0.14 | |
Long-Term Solvency or Financial Leverage | ||||||
Times Interested Earned | 12.2523 | 12.6043 | 16.1373 | 10.12 | ||
Fixed Charge Coverage | 1.6453 | 1.6060 | 1.7622 | 8.02 | 5.57 | |
Debt Ratio | 1.0608 | 0.9533 | 1.0235 | 1.11 | 0.53 | |
Debt: Equity Ratio | -10.1037 | 11.2877 | -23.6356 | -2.97 | ||
Asset Utilization or Turnover Ratios | ||||||
Inventory turnover | 4.9999 | 5.2479 | 4.5462 | 3.5 | 5.4 | |
Days Sales in Inventory | 73.0020 | 69.5515 | 80.2873 | 100 | 67 | |
Receivables Turnover | 54.5398 | 51.8282 | 47.1041 | 38.76 | 28.5 | |
Days Sales in Receivables | 6.6924 | 7.0425 | 7.7488 | 12.8 | ||
Operating Cycle | 127.5418 | 121.3797 | 127.3913 | 69 | ||
Profitability Ratios | ||||||
Net Profit Margin Ratio | 0.1020 | 0.0974 | 0.1087 | 0.0877 | ||
Total Asset Turnover | 2.3147 | 2.1690 | 2.1222 | 2.04 | 1.3 | |
Return on Assets | 0.2194 | 0.1823 | 0.2286 | 0.14 | 0.209 | |
Operating Income Margin | 0.1437 | 0.1384 | 0.1524 | 0.01256 | ||
Sales to Fixed Assets | 3.8743 | 3.5934 | 2.3799 | 1.8 | ||
ROE | -3.6078 | 3.9000 | -9.6893 | -0.81 | 0.789 | |
Return on Common Equity | -4.5022 | 140.61 | 20.5028 | 11.07 | 0.025 | |
Gross Profit Margin | 0.3409 | 0.3395 | 0.3363 | 0.3338 | ||
Investor Ratios | ||||||
Degree of Financial Leverage | 1.0889 | 1.0862 | 1.0661 | |||
Earnings per Share | 10.3043 | 11.9461 | 15.5616 | 7.75 | 3.92 | |
Diluted Earnings per Share | 10.0375 | 11.8308 | 15.3867 | 3.21 | ||
Price/Earnings Ratio | 20.7678 | 21.6932 | 23.0677 | 15.78 | 19.02 | |
Percentage of Earnings Retained | 4.6014 | 4.5184 | 4.1125 | |||
Dividend Payout | 0.5337 | 0.5052 | 0.4260 | |||
Dividend Yield | 0.1990 | 0.1632 | 0.1144 | 0.017 |
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