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I need help to complete the Ratio Analysis for Home Depot for the past two years. Accounting/Financial Analysis: Description of the financial health of the

I need help to complete the Ratio Analysis for Home Depot for the past two years.

Accounting/Financial Analysis: Description of the financial health of the company based on your analysis to include the following at a minimum: o Ratio analysis - Calculate the following ratios for at least the past two years and summarize the trends represented and what they mean for the financial health of the company. You should utilize industry comparisons/averages to draw your conclusions. If a certain ratio does not apply to your company, you may suggest to the instructor a more valuable alternative. Ratio calculations = + 2pts, industry comparisons = + 2pts, trends and interpretation of ratios = +3pts for total of 7 pts for this section. Current ratio Quick (acid test) ratio Times interest earned ratio Debt to Equity ratio Inventory turnover Accounts receivable turnover ratio Return on equity Gross profit percentage Operating margin percentage Net profit margin percentage Return on assets Earnings per share (common stock)

View Ratios

Fiscal year is February-January. All values USD millions. 2014 2015 2016 2017 2018 5-year trend
Sales/Revenue 78.81B 83.18B 88.52B 94.6B 100.9B
Sales Growth - 5.54% 6.42% 6.86% 6.67%
Cost of Goods Sold (COGS) incl. D&A 53.05B 55.87B 59.94B 64.04B 68.36B
COGS excluding D&A 51.29B 54.09B 58.08B 62.06B 66.3B
Depreciation & Amortization Expense 1.76B 1.79B 1.86B 1.97B 2.06B
Depreciation - - - - -
Amortization of Intangibles - - - - -
COGS Growth - 5.32% 7.29% 6.83% 6.75%
Gross Income 25.76B 27.3B 28.58B 30.56B 32.55B
Gross Income Growth - 5.98% 4.66% 6.94% 6.50%
Gross Profit Margin - - - - 32.25% NA
2014 2015 2016 2017 2018 5-year trend
SG&A Expense 16.6B 16.8B 16.67B 17.1B 17.69B
Research & Development - - - - -
Other SG&A 16.6B 16.8B 16.67B 17.1B 17.69B
SGA Growth - 1.23% -0.76% 2.53% 3.50%
Other Operating Expense - - - - -
Unusual Expense - 33M 128M 37M 170M
EBIT after Unusual Expense - 10.47B (128M) 13.43B 14.68B
Non Operating Income/Expense - 323M - - -
Non-Operating Interest Income 12M 14M 166M 36M 74M
Equity in Affiliates (Pretax) - - - - -
Interest Expense 711M 830M 919M 972M 1.06B
Interest Expense Growth - 16.74% 10.72% 5.77% 8.74%
Gross Interest Expense 713M 832M 921M 973M 1.06B
Interest Capitalized 2M 2M 2M 1M 2M
Pretax Income 8.47B 9.98B 11.02B 12.49B 13.7B
Pretax Income Growth - 17.82% 10.48% 13.34% 9.66%
Pretax Margin - - - - 13.58% NA
Income Tax 3.08B 3.63B 4.01B 4.53B 5.07B
Income Tax - Current Domestic 2.85B 3.26B 3.69B 4.33B 4.63B
Income Tax - Current Foreign 265M 258M 296M 315M 331M
Income Tax - Deferred Domestic (8M) 116M 31M (89M) 22M
Income Tax - Deferred Foreign (24M) - (9M) (24M) 88M
Income Tax Credits - - - - -
Equity in Affiliates - - - - -
Other After Tax Income (Expense) - - - - -
Consolidated Net Income 5.39B 6.35B 7.01B 7.96B 8.63B
Minority Interest Expense - - - - -
Net Income 5.39B 6.35B 7.01B 7.96B 8.63B
Net Income Growth - 17.83% 10.46% 13.53% 8.46%
Net Margin Growth - - - - 8.55% NA
Extraordinaries & Discontinued Operations - - - - -
Extra Items & Gain/Loss Sale Of Assets - - - - -
Cumulative Effect - Accounting Chg - - - - -
Discontinued Operations - - - - -
Net Income After Extraordinaries 5.39B 6.35B 7.01B 7.96B 8.63B
Preferred Dividends - - - - -
Net Income Available to Common 5.39B 6.35B 7.01B 7.96B 8.63B
EPS (Basic) 3.78 4.74 5.49 6.47 7.33
EPS (Basic) Growth - 25.40% 15.82% 17.85% 13.29%
Basic Shares Outstanding 1.43B 1.34B 1.28B 1.23B 1.18B
EPS (Diluted) 3.76 4.71 5.46 6.45 7.29
EPS (Diluted) Growth - 25.27% 15.92% 18.13% 13.02%
Diluted Shares Outstanding 1.43B 1.35B 1.28B 1.23B 1.18B
EBITDA 10.92B 12.29B 13.77B 15.44B 16.91B
EBITDA Growth - 12.50% 12.02% 12.15% 9.56%
EBITDA Margin - - - - 16.76% NA

Assets

Fiscal year is February-January. All values USD millions. 2014 2015 2016 2017 2018 5-year trend
Cash & Short Term Investments 1.93B 1.72B 2.22B 2.54B 3.6B
Cash Only 1.93B 1.72B 2.22B 2.54B 3.6B
Short-Term Investments - - - - -
Cash & Short Term Investments Growth - -10.68% 28.61% 14.53% 41.65%
Cash & ST Investments / Total Assets 4.76% 4.31% 5.28% 5.91% 8.07%
Total Accounts Receivable 1.4B 1.48B 1.89B 2.03B 1.95B
Accounts Receivables, Net 1.4B 1.48B 1.89B 2.03B 1.95B
Accounts Receivables, Gross 1.4B 1.48B 1.89B 2.03B 1.95B
Bad Debt/Doubtful Accounts - - - - -
Other Receivables - - - - -
Accounts Receivable Growth - 6.15% 27.36% 7.35% -3.79%
Accounts Receivable Turnover 56.37 56.05 46.84 46.62 51.69
Inventories 11.06B 11.08B 11.81B 12.55B 12.75B
Finished Goods 11.06B 11.08B 11.81B 12.55B 12.75B
Work in Progress - - - - -
Raw Materials - - - - -
Progress Payments & Other - - - - -
Other Current Assets 895M 1.02B 569M 608M 638M
Miscellaneous Current Assets 895M 1.02B 569M 608M 638M
Total Current Assets 15.28B 15.3B 16.48B 17.72B 18.93B
2014 2015 2016 2017 2018 5-year trend
Net Property, Plant & Equipment 23.35B 22.72B 22.19B 21.91B 22.08B
Property, Plant & Equipment - Gross 39.06B 38.51B 39.27B 40.43B 41.41B
Buildings 17.95B 17.76B 17.67B 17.77B 18.07B
Land & Improvements 8.38B 8.24B 8.15B 8.21B 8.35B
Computer Software and Equipment - - - - -
Other Property, Plant & Equipment 11.5B 11.02B 11.76B 12.54B 13.14B
Accumulated Depreciation 15.72B 15.79B 17.08B 18.51B 19.34B
Total Investments and Advances - - - - -
Other Long-Term Investments - - - - -
Long-Term Note Receivable - - - - -
Intangible Assets 1.29B 1.35B 2.67B 2.09B 2.28B
Net Goodwill 1.29B 1.35B 2.67B 2.09B 2.28B
Net Other Intangibles - - - - -
Other Assets 553M 520M 553M 1.14B 1.13B
Tangible Other Assets 553M 520M 553M 1.14B 1.13B
Total Assets 40.52B 39.95B 41.97B 42.97B 44.53B
Assets - Total - Growth - -1.41% 5.07% 2.37% 3.64%

Liabilities & Shareholders' Equity

2014 2015 2016 2017 2018 5-year trend
ST Debt & Current Portion LT Debt 33M 328M 427M 1.25B 2.76B
Short Term Debt - 290M 350M 710M 1.56B
Current Portion of Long Term Debt 33M 38M 77M 542M 1.2B
Accounts Payable 5.8B 5.81B 6.57B 7B 7.24B
Accounts Payable Growth - 0.17% 13.05% 6.63% 3.49%
Income Tax Payable 14M 36M 34M 25M 54M
Other Current Liabilities 4.91B 5.1B 5.5B 5.86B 6.14B
Dividends Payable - - - - -
Accrued Payroll 1.43B 1.39B 1.52B 1.48B 1.64B
Miscellaneous Current Liabilities 3.48B 3.71B 3.98B 4.37B 4.5B
Total Current Liabilities 10.75B 11.27B 12.52B 14.13B 16.19B
Long-Term Debt 14.69B 16.87B 20.79B 22.35B 24.27B
Long-Term Debt excl. Capitalized Leases 14.22B 16.22B 20.79B 21.51B 23.34B
Non-Convertible Debt 14.22B 16.22B 20.79B 21.51B 23.34B
Convertible Debt - - - - -
Capitalized Lease Obligations 468M 648M - 836M 932M
Provision for Risks & Charges - - - - -
Deferred Taxes 465M 591M 299M 205M 321M
Deferred Taxes - Credit 514M 642M 379M 296M 440M
Deferred Taxes - Debit 49M 51M 80M 91M 119M
Other Liabilities 2.04B 1.84B 1.97B 1.86B 2.17B
Other Liabilities (excl. Deferred Income) 2.04B 1.84B 1.97B 1.86B 2.17B
Deferred Income - - - - -
Total Liabilities 28B 30.62B 35.66B 38.63B 43.08B
Non-Equity Reserves - - - - -
Total Liabilities / Total Assets 69.10% 76.66% 84.95% 89.92% 96.73%
Preferred Stock (Carrying Value) - - - - -
Redeemable Preferred Stock - - - - -
Non-Redeemable Preferred Stock - - - - -
Common Equity (Total) 12.52B 9.32B 6.32B 4.33B 1.45B
Common Stock Par/Carry Value 88M 88M 88M 88M 89M
Retained Earnings 23.18B 27B 30.97B 35.52B 39.94B
ESOP Debt Guarantee - - - - -
Cumulative Translation Adjustment/Unrealized For. Exch. Gain - - - - -
Unrealized Gain/Loss Marketable Securities - - - - -
Revaluation Reserves - - - - -
Treasury Stock (19.19B) (26.19B) (33.19B) (40.19B) (48.2B)
Common Equity / Total Assets 30.90% 23.34% 15.05% 10.08% 3.27%
Total Shareholders' Equity 12.52B 9.32B 6.32B 4.33B 1.45B
Total Shareholders' Equity / Total Assets 30.90% 23.34% 15.05% 10.08% 3.27%
Accumulated Minority Interest - - - - -
Total Equity 12.52B 9.32B 6.32B 4.33B 1.45B
Liabilities & Shareholders' Equity 40.52B 39.95B 41.97B 42.97B 44.53B

Operating Activities

Fiscal year is February-January. All values USD millions. 2014 2015 2016 2017 2018 5-year trend
Net Income before Extraordinaries 5.39B 6.35B 7.01B 7.96B 8.63B
Net Income Growth - 17.83% 10.46% 13.53% 8.46%
Depreciation, Depletion & Amortization 1.76B 1.79B 1.86B 1.97B 2.06B
Depreciation and Depletion - - - - -
Amortization of Intangible Assets - - - - -
Deferred Taxes & Investment Tax Credit (31M) 159M 15M (117M) 92M
Deferred Taxes (31M) 159M 15M (117M) 92M
Investment Tax Credit - - - - -
Other Funds 228M (98M) 100M 267M 273M
Funds from Operations 7.34B 8.19B 8.99B 10.08B 11.06B
Extraordinaries - - - - -
Changes in Working Capital 289M 50M 386M (297M) 974M
Receivables (15M) (81M) (181M) (138M) 139M
Accounts Payable 605M 244M 888M 446M 352M
Other Assets/Liabilities 35M (157M) 71M 55M 538M
Net Operating Cash Flow 7.63B 8.24B 9.37B 9.78B 12.03B
Net Operating Cash Flow Growth - 8.05% 13.72% 4.37% 22.98%
Net Operating Cash Flow / Sales 9.68% 9.91% 10.59% 10.34% 11.92%

Investing Activities

2014 2015 2016 2017 2018 5-year trend
Capital Expenditures (1.39B) (1.44B) (1.5B) (1.62B) (1.9B)
Capital Expenditures (Fixed Assets) (1.39B) (1.44B) (1.5B) (1.62B) (1.9B)
Capital Expenditures (Other Assets) - - - - -
Capital Expenditures Growth - -3.82% -4.23% -7.85% -17.03%
Capital Expenditures / Sales -1.76% -1.73% -1.70% -1.71% -1.88%
Net Assets from Acquisitions (206M) (200M) (1.67B) - (374M)
Sale of Fixed Assets & Businesses 88M 48M 43M 38M 47M
Purchase/Sale of Investments - 323M 144M - -
Purchase of Investments - - - - -
Sale/Maturity of Investments - 323M 144M - -
Other Uses - - - - (4M)
Other Sources - - - - -
Net Investing Cash Flow (1.51B) (1.27B) (2.98B) (1.58B) (2.23B)
Net Investing Cash Flow Growth - 15.66% -134.62% 46.91% -40.75%
Net Investing Cash Flow / Sales -1.91% -1.53% -3.37% -1.67% -2.21%

Financing Activities

2014 2015 2016 2017 2018 5-year trend
Cash Dividends Paid - Total (2.24B) (2.53B) (3.03B) (3.4B) (4.21B)
Common Dividends (2.24B) (2.53B) (3.03B) (3.4B) (4.21B)
Preferred Dividends - - - - -
Change in Capital Stock (8.31B) (6.75B) (6.77B) (6.66B) (7.75B)
Repurchase of Common & Preferred Stk. (8.55B) (7B) (7B) (6.88B) (8B)
Sale of Common & Preferred Stock 241M 252M 228M 218M 255M
Proceeds from Stock Options 241M 252M 228M 218M 255M
Other Proceeds from Sale of Stock - - - - -
Issuance/Reduction of Debt, Net 3.93B 2.23B 4.01B 2.27B 3.3B
Change in Current Debt - 290M 60M 360M 850M
Change in Long-Term Debt 3.93B 1.94B 3.95B 1.91B 2.45B
Issuance of Long-Term Debt 5.22B 1.98B 3.99B 4.96B 2.99B
Reduction in Long-Term Debt (1.29B) (39M) (39M) (3.05B) (543M)
Other Funds (37M) (25M) 4M (78M) (211M)
Other Uses (37M) (25M) - (78M) (211M)
Other Sources - - 4M - -
Net Financing Cash Flow (6.65B) (7.07B) (5.79B) (7.87B) (8.87B)
Net Financing Cash Flow Growth - -6.30% 18.16% -35.99% -12.71%
Net Financing Cash Flow / Sales -8.44% -8.50% -6.54% -8.32% -8.79%
Exchange Rate Effect (34M) (106M) (111M) (8M) 124M
Miscellaneous Funds - - - - -
Net Change in Cash (565M) (206M) 493M 322M 1.06B
Free Cash Flow 6.24B 6.8B 7.87B 8.16B 10.13B
Free Cash Flow Growth - 8.99% 15.74% 3.71% 24.16%
Free Cash Flow Yield - - - - 2.41% NA

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