Question
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)
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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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