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Question: Discuss the profitability of Home Depot for 2015 fiscal year using 5 evidences (except EPS) based on ratios and/or trends and the key business
Question: Discuss the profitability of Home Depot for 2015 fiscal year using 5 evidences (except EPS) based on ratios and/or trends and the key business insights from the Statement of Cash Flows of Home Depot with workings and reference from the financial statement(s) .
THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS January 31, 2016 February 1, 2015 $ $ 2,216 1,890 11,809 1,078 16,993 39,266 17,075 22,191 2,102 1,263 42,549 1,723 1,484 11,079 1,016 15,302 38,513 15,793 22,720 1,353 571 39,946 $ $ $ 290 5,807 amounts in millions, except share and per share data ASSETS Current Assets: Cash and Cash Equivalents Receivables, net Merchandise Inventories Other Current Assets Total Current Assets Property and Equipment, at cost Less Accumulated Depreciation and Amortization Net Property and Equipment Goodwill Other Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Short-Term Debt Accounts Payable Accrued Salaries and Related Expenses Sales Taxes Payable Deferred Revenue Income Taxes Payable Current Installments of Long-Term Debt Other Accrued Expenses Total Current Liabilities Long-Term Debt, excluding current installments Other Long-Term Liabilities Deferred Income Taxes Total Liabilities STOCKHOLDERS' EQUITY Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.772 billion shares at January 31, 2016 and 1.768 billion shares at February 1, 2015; outstanding: 1.252 billion shares at January 31, 2016 and 1.307 billion shares at February 1, 2015 Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock, at cost, 520 million shares at January 31, 2016 and 461 million shares at February 1, 2015 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 350 6,565 1,515 476 1,566 1,391 434 1,468 35 1,943 12,526 20,888 1,965 854 36,233 38 1,806 11,269 16,869 1,844 642 30,624 88 9,347 30,973 (898) 8,885 26,995 (452) (33,194) 6,316 $ 42,549 (26,194) 9,322 39,946 $ See accompanying Notes to Consolidated Financial Statements. THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS amounts in millions, except per share data NET SALES Cost of Sales GROSS PROFIT January 31, 2016 $ 88,519 58,254 30,265 Fiscal Year Ended() February 1, 2015 $ 83,176 54,787 28,389 February 2, 2014 $ 78,812 51,897 26,915 Operating Expenses: Selling, General and Administrative Depreciation and Amortization Total Operating Expenses OPERATING INCOME 16,801 1,690 18,491 16,280 1,640 17,920 10,469 16,122 1,627 17,749 9,166 11,774 Interest and Other (Income) Expense: Interest and Investment Income Interest Expense Interest and Other, net (166) 919 (337) 830 493 (12) 711 699 753 EARNINGS BEFORE PROVISION FOR INCOME TAXES Provision for Income Taxes NET EARNINGS 11,021 4,012 7,009 9,976 3,631 6,345 8,467 3,082 5,385 $ $ $ Weighted Average Common Shares BASIC EARNINGS PER SHARE 1,277 5.49 1,338 4.74 1,425 3.78 $ $ $ Diluted Weighted Average Common Shares DILUTED EARNINGS PER SHARE 1,283 5.46 1,346 4.71 1,434 3.76 $ $ $ (1) Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks. See accompanying Notes to Consolidated Financial Statements. THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME amounts in millions January 31, 2016 $ 7,009 Fiscal Year Ended (1) February 1, February 2, 2015 $ 6,345 $ 5,385 2014 (510) (329) Net Earnings Other Comprehensive Loss: Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Other Total Other Comprehensive Loss COMPREHENSIVE INCOME (412) (34) 11 (12) (446) (498) 5,847 (10) (351) 5,034 $ 6,563 $ $ (1) Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks. See accompanying Notes to Consolidated Financial Statements. THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Common Stock Treasury Stock Paid-In Capital Accumulated Other Comprehensive Income (Loss) $ 397 Shares Amount Retained Earnings $ 20,038 Shares Amount Stockholders Equity $ 17,777 1,754 $ 88 $ 7,948 (270) $ (10,694) 5,385 5,385 IT 103 103 123 (329) (12) IL | IL (8,500) (2,243) 1,01 5 5 2. 1,761 S 88 $ 8,402 $ $ 381) $ (19,194) $ 23,180 6,345 amounts in millions, except per share data Balance, February 3, 2013 Net Earnings Shares Issued Under Employee Stock Plans Tax Effect of Stock-Based Compensation Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Stock Options, Awards and Amortization of Restricted Stock Repurchases of Common Stock Cash Dividends ($1.56 per share) Other Balance, February 2, 2014 Net Earnings Shares Issued Under Employee Stock Plans Tax Effect of Stock-Based Compensation Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Stock Options, Awards and Amortization of Restricted Stock Repurchases of Common Stock Cash Dividends ($1.88 per share) Other Balance, February 1, 2015 Net Earnings Shares Issued Under Employee Stock Plans Tax Effect of Stock-Based Compensation Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax Stock Options, Awards and Amortization of Restricted Stock Repurchases of Common Stock Cash Dividends ($2.36 per share) Balance, January 31, 2016 228 (8,500) (2,243) (10) 12,522 6,345 122 136 (510) 11 TT TIL TIT IL | (7,000) 225 (7,000) (2,530) (2,530) 1,768 $ 8,885 $ 26,995 S 7.009 | + 9,322 7,009 73 145 | | TIL | (412) (34) | (7,000) 244 (7,000) (3,031) (3,031) 1,772 S 88 S 9,347 S 30,973 S (898) (520) S (33,194) s 6,316 See accompanying Notes to Consolidated Financial Statements. THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Year Ended") February 1, 2015 amounts in millions January 31, 2016 February 2, 2014 7,009 $ 6,345 $ 5,385 1,757 1,863 244 (144) 1,786 225 (323) 228 (181) (546) (5) 888 109 (81) (124) (199) 244 146 168 159 (104) 8,242 15) (455) (5) 605 75 119 (31) (35) 7,628 154 15 (33) 9,373 (1,389) CASH FLOWS FROM OPERATING ACTIVITIES: Net Earnings Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization Stock-Based Compensation Expense Gain on Sales of Investments Changes in Assets and Liabilities, net of the effects of acquisitions: Receivables, net Merchandise Inventories Other Current Assets Accounts Payable and Accrued Expenses Deferred Revenue Income Taxes Payable Deferred Income Taxes Other Net Cash Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures, net of $165, $217 and $46 of non-cash capital expenditures in fiscal 2015, 2014 and 2013, respectively Proceeds from Sales of Investments Payments for Businesses Acquired, net Proceeds from Sales of Property and Equipment Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Short-Term Borrowings, net Proceeds from Long-Term Borrowings, net of discounts Repayments of Long-Term Debt Repurchases of Common Stock Proceeds from Sales of Common Stock Cash Dividends Paid to Stockholders Other Financing Activities Net Cash Used in Financing Activities Change in Cash and Cash Equivalents Effect of Exchange Rate Changes on Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR: Interest, net of interest capitalized Income Taxes (1,503) 144 (1,666) 43 (2,982) (1,442) 323 (200) 48 (206) 88 (1,507) (1,271) 60 3,991 (39) (7,000) 228 (3,031) 290 1,981 (39) (7,000) 252 (2,530) 5,222 (1,289) (8,546) 241 (2,243) (37) (6,652) (25) (531) (5,787) 604 (111) 1,723 2,216 (7,071) (100) (106) 1,929 1,723 (34) 2,494 1,929 $ $ $ $ $ 874 3,853 $ $ 782 3,435 $ $ 639 2,839 (1) Fiscal years ended January 31, 2016, February 1, 2015 and February 2, 2014 include 52 weeks. See accompanying Notes to Consolidated Financial StatementsStep by Step Solution
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