Go to any financial website of your choosing $($such as Yahoo FinanceLinks to an external site or the main website for Home Depot$)$ and locate the financial statements for Home Depot. Note that certain websites, such as MorningstarLinks to an external site., will allow you to export the data to Excel for free which might simplify your Excel calculations. TABLE $3\mathrm{.}8$ Common Financial Ratios ready ratios dot com study guide

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$1)$ Using an Excel spreadsheet, you will create a three$-$year ratio trend analysis from the financial statements for Home Depot. The trend will consist of the following ratios:

Current Ratio and the Quick Ratio from the $$I$.$ Short term solvency, or liquidity, ratios$$ category

Debt to Equity Ratio and the Times Interest Earned Ratio $($aka Interest Coverage Ratio$)$ from the $$II$.$ Long$-$term solvency, or financial leverage, ratios$$ category

Return on Assets Ratio and the Return on Equity Ratio from the $$IV$.$ Profitability ratios$$ category

Then provide a one$-$page $($minimum$)$ discussion about what each trend indicates for your assigned corporation. Is the trend good or bad, why?

$2)$ Find the industry ratios for Home Depot. Note that the ratios provided in readyratios.com for your assigned corporation may not match your part $(1)$ calculations exactly.

Compare your calculated ratios for Home Depot to the industry ratios. Then provide a one$-$page $($minimum$)$ discussion that details whether Home Depot is performing better or worse than the industry based on the definitions of the six ratios. Are your calculated trends from part $(1)$ moving closer to or farther away from the industry averages? Is this good or bad?