Gracie Quintana Jeff Miller Christine Kyrish Steven Poon http://www.forbes.com/sites/greatspeculations/2015/02/25/home-depot-earnings-review-solid-growth-on-positive-economic-prospects/, http://marketrealist.com/2015/03/home-depot-strong-growth-outlook-2016/, Home Depot Is the Second Largest Retailer, Home Depot Is The Second Largest Retailer, Financial Analysis of Home Depot Term Paper. All Rights Reserved. Net Sales At paperdue.com, we provide students the tools they need to streamline their studying, researching, and writing tasks. Premium Financial reporting quality relates to the accuracy with which Home Depot Inc.’s reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows. Premium The dividend discount model (DDM) is a technique for estimating the value of a share of Home Depot Inc.’s common stock issue as the present value of all future dividends. Financial Ratio Analysis and Interpretation 37 US billion. The relevance of subjecting the financial statements of a company to intensive analysis cannot be overstated. Forbes. Ten years of annual and quarterly financial ratios and margins for analysis of Home Depot (HD). Sales are also more stable than earnings and never negative. some fluctuations as well. [pic] Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments. Objectives 4-7 Classes, About Home Depot Inc. : Home Depot, Inc. founded in 1978, is an American home improvement retailer that sells building materials and home improvement products. PART 1 Financial reporting quality relates to the accuracy with which Home Depot Inc.’s reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows. The Home Leader -vs- Improving Home Improvements Historical View of Financial Performance The FCFF valuation approach estimates the value of the firm as the present value of future FCFF discounted at the weighted average cost of capital (WACC). 2. In this FSA Case Analysis, our team, Home Depot & Lowe’s | These statements provide financial information of an equity to internal and external users and decision makers. The first two stores were opened in Atlanta, Georgia with the mission to provide customers with products, services, and knowledge they need to create their dream home. The cash flow statement provides information about Home Depot Inc.’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Home Depot Inc.’s balance sheet. The long-term investments however while had a bit of, an increase from 20 million in 2017 to 27 million in 2019. Finally, the paper explains the threats to the home improvement industry as a whole as it relates to the housing market, and how Home Depot's initiatives have not necessarily been able to correct many of the issues and problems that the industry faces. Conduct analysis of financial statement – to look beyond the numbers The first two stores were opened in Atlanta, Georgia with the mission to provide customers with products, services, and knowledge they need to create their dream home. • Statement of Stockholders Equity and Comprehensive Income Financial Position To that earnings number, interest, taxes, depreciation, and amortization are added. It must be placed in a folder with slide. I. Office Depot, Inc. (“Office Depot”), a supplier of a broad assortment of office products and business services throughout the United States and worldwide, announced on February 20, 2013 a merger agreement with OfficeMax, Inc., which will better equip them to compete in the rapidly-changing industry. She supports the changes proposed by the new Home Depot CEO and that would play a role in improving Home Depot's financial health in the home center and building industry. 3  Pages.  IR Coordinator: 770-384-2871. FINANCIAL ANALYSIS:LOWES/HOME DEPOT Common-Sized Balance Sheet Analysis The common-size (vertical) balance sheet of Lowe’s shows current assets as 14,288,000 million in 2019, and the current liabilities were 14,497,000 million. Measures how efficiently Home Depot Inc. generates revenues from its investments in fixed or total assets. Lowe’s cash and cash equivalents decreased slightly moderately from 558,000,000 to, 511,000,000 during the three-year period. Financial ratios and metrics for Home Depot stock (HD). Old age, Geriatrics, Long term care insurance 1467  Words | Premium There are 2 years covered in the Consolidated Balance Sheet, namely fiscal years ended 1 February 2004 and 2 February 2003, Office Depot, Inc. (“Office Depot”), a supplier of a broad assortment of office products and business services throughout the United States and worldwide, announced on February 20, 2013 a merger agreement with OfficeMax, Inc., which will better equip them to compete in the rapidly-changing industry. Premium M5 Report Permanent Strike Replacements.docx, The Home Depot and Lowe's Companies are two of the largest home improvement retailer operators in th, University of Houston, Victoria • ACCT 6351, Montana State University, Bozeman • ACCT 6351, California State University, Long Beach • ECON 300. Premium Financial Statements Home Depot, Inc. (2015). Analysis of Strategic Factors, Strategic Issues, Strategic Alternatives and Recommendations, Evaluation and Control and Summary) ` (Current Situation, External Environment, Internal Environment, Premium INDUSTRY OVERVIEW 4  Pages. Students examine a financial-ratio analysis for Home Depot that acts as a template for generating a comparable ratio analysis for Lowe's. 1. Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity. • Statement of Stockholders Equity and Comprehensive Income They had big plans for the hardware and, Principles (US GAAP) We Can Help." (2015). They opened their first store on June 22, 1979 in Atlanta Georgia. In 2018, current assets were 12,772,000 and current liabilities were 12,096,000 million. An industry of competition, and tight margins The Home Depot, and Lowe 's Company are still at it. This is the format for the research paper. The home products market is very competitive around the world and The Home Depot has taken advantage of much of the American market while leaving the international market largely untouched. Premium Look at page 17 of the case (Management Discussion). Some of these changes are for the better and then there are changes that are not so much in our favor. ©2020 Home Depot Product Authority, LLC. Home Depot / Lowe 's Financial Analysis 2 An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Home Depot and Lowe's are two home improvement chains in the United, Valuation and Analysis of Home Depot Inc. To choose your options for e-mail notification, please enter your e-mail address below and click Submit. Electronic Inspiration LLC. This is represented with the chart below. NAME: PATEL CHIRAG (B00040617) Bernie Marcus and Arthur Blank opened the first Home Depot in Atlanta, Georgia in 1979. 4-5 - Violet folder with violet slide Copyright 2020  . Annual Report. In Case Number 12, "Value Line Publishing, October 2002," Carrie Galeotafiore presents a five-year financial forecast that shows Home Depot in an positive light. Use of this site is subject to certain Terms of Use which constitute a legal agreement between you and The Home Depot U.S.A., Inc. PART 1 Total Assets Lowe’s (LOW) and Home Depot (HD) are competitors in the every growing market of Home Improvement. Excerpt from Term Paper : Financial Research Report: Home Depot For stakeholders and investors, financial analysis is of great importance as it enables them to evaluate and assess a company's performance and financial health from different perspectives. 2020, https://www.paperdue.com/essay/financial-analysis-of-home-depot-2152455, Financial Analysis: Home Depot Net Income Tomeka DavisMaking Choices Guide, Apply theory in practice Home Depot Inc.’s profitability ratio calculated as operating income divided by revenue. Home Depot Inc.’s profitability ratio calculated as net income divided by shareholders’ equity. This analysis will diagnose the company's situation, determine what issues need to be addressed, Apart from that there is another type of risk which can surface even in case the market continues its upward march. • Growth in Long-term Debt Accounting Analysis Accounting Policies Degree of Accounting Flexibility Accounting Strategy Quality of Disclosure Quantitative Analysis Red Flags IV. ACFI 1001 Accounting for Decision Makers – Individual Project (15%) This paper is going to analyze the balance sheets of these different firms to determine how each has performed over the course of recent years. Differences in accounting methods affect financial ratio comparisons between companies, and analysts make adjustments to reported financials in the interest of comparability. Abstract IDENTIFY THE MAJOR FINANCIAL STATEMENTS AND OTHERS MEANS OF REPORTING. 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