Hello. Thank you very much for your help with this assignment. Please note that I have two separate entities for this assignment: The first is a financial analysis of Home Depot based on the data in the 10-K report (specifically, the balance sheet below followed by the income statement ). Please note the assignment follows below after the balance sheet and income statement posted below. I have detailed the financial ratios (there are eight (8) in total) improved or declined over the two years. In short, the assignment is not lengthy. It is only 7 short questions. Thank you very much again.

HOME DEPOT ANALYSIS

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

amounts in millions, except share and per share data

February1,

2015

February2,

2014

ASSETS

Current Assets:

Cash and Cash Equivalents

$

1,723

$

1,929

Receivables, net

1,484

1,398

Merchandise Inventories

11,079

11,057

Other Current Assets

1,016

895

Total Current Assets

15,302

15,279

Property and Equipment, at cost

38,513

39,064

Less Accumulated Depreciation and Amortization

15,793

15,716

Net Property and Equipment

22,720

23,348

Goodwill

1,353

1,289

Other Assets

571

602

Total Assets

$

39,946

$

40,518

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Short-Term Debt

$

290

$

Accounts Payable

5,807

5,797

Accrued Salaries and Related Expenses

1,391

1,428

Sales Taxes Payable

434

396

Deferred Revenue

1,468

1,337

Income Taxes Payable

35

12

Current Installments of Long-Term Debt

38

33

Other Accrued Expenses

1,806

1,746

Total Current Liabilities

11,269

10,749

Long-Term Debt, excluding current installments

16,869

14,691

Other Long-Term Liabilities

1,844

2,042

Deferred Income Taxes

642

514

Total Liabilities

30,624

27,996

STOCKHOLDERS' EQUITY

Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.768 billion shares at February 1, 2015 and 1.761 billion shares at February 2, 2014; outstanding: 1.307 billion shares at February 1, 2015 and 1.380 billion shares at February 2, 2014

88

88

Paid-In Capital

8,885

8,402

Retained Earnings

26,995

23,180

Accumulated Other Comprehensive (Loss) Income

(452

)

46

Treasury Stock, at cost, 461 million shares at February 1, 2015 and 381 million shares at February 2, 2014

(26,194

)

(19,194

)

Total Stockholders' Equity

9,322

12,522

Total Liabilities and Stockholders' Equity

$

39,946

$

40,518

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

Fiscal Year Ended⁽¹⁾

amounts in millions, except per share data

February1,

2015

February2,

2014

February3,

2013

NET SALES

$

83,176

$

78,812

$

74,754

Cost of Sales

54,222

51,422

48,912

GROSS PROFIT

28,954

27,390

25,842

Operating Expenses:

Selling, General and Administrative

16,834

16,597

16,508

Depreciation and Amortization

1,651

1,627

1,568

Total Operating Expenses

18,485

18,224

18,076

OPERATING INCOME

10,469

9,166

7,766

Interest and Other (Income) Expense:

Interest and Investment Income

(337

)

(12

)

(20

)

Interest Expense

830

711

632

Other

(67

)

Interest and Other, net

493

699

545

EARNINGS BEFORE PROVISION FOR INCOME TAXES

9,976

8,467

7,221

Provision for Income Taxes

3,631

3,082

2,686

NET EARNINGS

$

6,345

$

5,385

$

4,535

Weighted Average Common Shares

1,338

1,425

1,499

BASIC EARNINGS PER SHARE

$

4.74

$

3.78

$

3.03

Diluted Weighted Average Common Shares

1,346

1,434

1,511

DILUTED EARNINGS PER SHARE

$

4.71

$

3.76

$

3.00

(1)

Fiscal years ended February1, 2015 and February2, 2014 include 52weeks. Fiscal year ended February3, 2013 includes 53 weeks.

ASSIGNMENT

When constructing the financial rations below, you will be using HD's balance sheet from above and its income statement above of its 10-K report.

1.Determine the current and quick ratios for 2015 and 2014 and briefly comment on the changes between these two years.Use the figures for total current assets, total current liabilities, and merchandise inventories as needed for these ratios.

2.Determine days sales outstanding (DSO) for 2015 and 2014 and briefly comment on the changes between these two years.Note:Here use Net Receivables and Net Sales as well as a 365-day year.

3.Determine the total asset turnover ratios (TATO) for 2015 and 2014 and briefly comment on the changes between these two years.Once again, please use Net Sales here.

4.Determine the profit margin (PM) for 2015 and 2014 and briefly comment on the changes between these two years.

Note:Here use the value of Net Earnings (from the income statement) for each of the two years and the values of Net Sales for the two years as well.

5.Determine the value of return on assets (ROA) for 2015 and 2014 and briefly comment on the changes between these two years.Once again, rely on the value of Net Earnings (from the income statement and Total Assets from the balance sheet).

6.Determine the value of return on equity (ROE) for 2015 and 2014 and briefly comment on the changes between these two years.In your calculation of ROE, once again rely on the value of Net Earnings (from the income statement) and Total Stockholders' Equity (in the next-to-last line of the balance sheet on page 32 of the 10-K report).

7.Determine the debt-to-assets ratio for HD for 2015 and 2014 and comment on the changes between the two years.Note:For total debt for each year, please use HD's values for ShortTerm Debt as the value of notes payable and the figures for Long-Term Debt, excluding current installments as your value of Long-term bonds.The value of Total Assets is given directly in the balance sheet.