Using the accompanying financial statements (Excel Workbook), assess The Home Depot concerning liquidity, solvency, profitability, and stock performance. For each area, you should calculate the ratios from the Ratios for Home Depot file and provide a brief analysis of the ratios calculated. You do not need to perform vertical analysis for this assignment. I include historical stock price information and outstanding common share information below.

You do not need to look beyond the financial statements to complete this assignment.

Fiscal Year Ended	2/1/2015	2/2/2014	2/3/2013	1/29/2012
Adjusted Closing Price	$103.34	$74.44	$63.87	$41.67
Common Shares Outstanding (millions)	1,307	1,380	1,486	1,523

Liquidity Ratios
Fiscal Year Ended	9/28/14	9/29/13	9/30/12	10/2/11
Current ratio	1.372	1.017	1.900	1.828
Working capital	$1,130.0	$94.1	$1,989.8	$1,719.1
Acid-test ratio	0.814	0.706	1.142	1.174
Inventory turnover (times)	6.23	5.43	5.27
Days sales in inventory	58.59	67.27	69.29
Accounts receivable turnover (times)	27.59	28.39	30.44
Days sales in receivables	13.23	12.86	11.99
Free cash flow	-$553.1	$1,757.1	$894.1	$1,080.5
Average inventory	$1,101.05	$1,176.35	$1,103.65
Average A/R	$596.20	$523.65	$436.20

S in milions 3 2/3/131/29/12 2/2/14 S Year Ending 6 OPERATING ACTIVITIES 7 Net eamings 8 Adjustments to reconcile net earmings to net cash 9Depreciation and amortizatborn 10 Stock-based compensation expense 11 Goodwill impairment $6,345 $5,385 4,535 $3,883 provided by operating activities 1,786 1757 1,6841,682 225 97 0 hanges in Assets and Liabities,net of the effects of acquisition and disposition (143) 13 Receivables, net l 14 Merchandise inventories 15 Other current assets Illll 16 Accounts payable and accrued expenses 17 Deferred revenue 18 Income taxes payable 19 Deferred income taxes (124) (455)l (350) (456) i (199) 244 15 422 698 98 121 605 19 87 168 170 107 13 20 Other long-term liabilities 21 Other 51 $8,242$7,628 $6,975 $6,651 23 Net cash provided by operating activities 24 INVESTING ACTIVITIES 25 Capital expenditures 26 Proceeds from sales of investments 27 Proceeds from sale of business 28 Payments for business acquired 29 Proceeds from sales of property & equipment (1.442)1389) 1312)1.221) 200) (206) TO $1.271)($1,50) $1,432) (51,129) 31 Net cash used by investing activitles 32 FINANCING ACTIVITIES: 33 Proceeds from short-tem borrowings, net 34 Proceeds from long-term borrowings, net of discount Repayments of long-term debt 36 Repurchases of common stock 37 Proceeds from sales of common stock 38 Cash dividends paid to stockholders 39 Other financing actvities 1,9815 222 (39)13.28932)I1028) (7,coolll8,546)3.984)3470) 252 2.50)2 243) 1.743) 1.632) (8.546) 784 984) 306 (69)(218) 41 Net cash used by financing activitie $7.07) ($6.652) (SS,034) (54048) ($7.071 43 Change in Cash and Cash Equivients 44 Efect of exchange rate changes on cash and cash equivalents ($100ll $531$509 $1474 46 Cash and cash ecuivalents at beg ing of year 47 Cash and cash equivalents at ond of year .929 $1,723$1.929$2,494$1.987 2.494 1 98 50 SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR 51 Interest, net of capitalized initerest 52 Income taxes $3435$2.839$2482$1.865 Normal View