THE HOME DEPOT, INC. (NYSE: HD)

Pro Forma Balance Sheet

Report Date 2018 2017 2016 2015

Scale Millions Millions Millions Millions

Assets THE HOME DEPOT, INC.

Current assets: FINANCIAL STATEMENT OF RATIOS

Cash and cash equivalents 1,778 3,595 2,538 2,216

Receivables, net 1,936 1,952 2,029 1,890 2018 2017 2016 3 YR Avg

Merchandise inventories 13,925 12,748 12,549 11,809 I. Profitability ratios

Other current assets 890 638 608 569 gross profit margin (%)

Total current assets 18,529 18,933 17,724 16,484 operating expense margin (%)

Net property and equipment 22,375 22,075 21,914 22,191 profit margin (%)

Operating lease right-of-use assets 0 0 0 0 return on assets (%)

Goodwill 2,252 2,275 2,093 2,102 return on equity (%)

Other assets 847 1,246 1,235 1,196

Total assets 44,003 44,529 42,966 41,937 II. Productivity ratios:

Accounts Receivable Turnover

Liabilities and Stockholders Equity days sales outstanding (days)

Current liabilities: Inventory Turnover

Short-term debt 1,339 1,559 710 350 Days inventory outstanding (days)

Accounts payable 7,755 7,244 7,000 6,565 Accounts Payable turnover

Accrued salaries and related expenses 1,506 1,640 1,484 1,515 Days payable outstanding (days)

Sales taxes payable 656 520 508 476 Cash Conversion Cycle (days)

Deferred revenue 1,782 1,805 1,669 1,566 PPE Turnover

Income taxes payable 11 54 25 34

Current installments of long-term debt 1,056 1,202 542 77 III. Coverage ratios:

Current operating lease liabilities 0 0 0 0 Total liabilities-to-equity

Other accrued expenses 2,611 2,170 2,195 1,941 Total debt to equity

Total current liabilities 16,716 16,194 14,133 12,524 Cash from operations to total debt

Long-term debt, excluding current installments 26,807 24,267 22,349 20,789 Times interest earned

Long-term operating lease liabilities 0 0 0 0

Deferred income taxes 491 440 296 379 IV. Liquidity

Other long-term liabilities 1,867 2,174 1,855 1,965 Current ratio

Total liabilities 45,881 43,075 38,633 35,657 Quick ratio

Shareholders equity:

Common stock 89 89 88 88

Paid-in capital 10,578 10,192 9,787 9,347

Retained earnings 46,423 39,935 35,519 30,973

Accumulated other comprehensive loss (772) (566) (867) (898)

Treasury stock (58,196) (48,196) (40,194) (33,194)

Total stockholders (deficit) equity (1,878) 1,454 4,333 6,316

Total liabilities and stockholders equity 44,003 44,529 42,966 41,973

Pro Forma Income Statement

Report Date 2018 2017 2016 2015

Scale Millions Millions Millions Millions

Net sales 108,203 100,904 94,595 88,519

Cost of sales 71,043 66,548 62,282 58,254

Gross profit 37,160 34,356 32,313 30,265

Selling, general and administrative 19,513 17,864 17,132 16,801

Depreciation and amortization 2,117 1,811 1,754 1,690

Operating income 15,530 14,681 13,427 11,774

Interest and investment income 93 74 36 166

Interest expense 1,067 1,057 972 919

Earnings before provision for income taxes 14,556 13,698 12,491 11,021

Provision for income taxes 3,435 5,068 4,534 4,012

Net earnings 11,121 8,630 7,957 7,009

Additional information

Report Date 2018 2017 2016 2015

Scale Millions Millions Millions Millions

Net cash flows from operating activities 13,038 12,031 9,783 9,373