Home Depot Financial Analysis

statements are for the fiscal year ended February 3, 2013.) The problem contains three major

Figures are taken from the Income statement and Balance sheet as at 30 January 2009 and as at 30 January 2010.

Home Depot is the fastest growing retailer in the U.S. by some accounts. It has a fascinating history of innovation and entrepreneurship. The company had some difficulties in the mid-2000s that some attribute to cultural clashes. However, during this period the company was able to take full advantage of the housing boom. Yet when the bubble burst, Home Depot was forced to claim substantial losses. Despite these loses Home Depot has weathered the storm fairly well and is in prime position to take advantage of an economic recovery; if it ever comes.

Several different accounting concepts resulted in the 3% reduction of earnings felt by Home Depot in 2007 and 21% lower than 2006.

The income statement provided represents the financials for a five year reporting period - 1998 to 2002.

The fiscal year is to measure the organization 's inventory, such as medical equipment and supplies for a company. The fiscal year is usually measured from the 1st of January to the 31st of December. Please note that even though a fiscal year is recognized worldwide on the accounting world, the variation may still occur from business to business, including countries. Fiscal years are also utilized for income tax purposes, it provides a broad picture of the company’s assets. The lower the inventory, the less time consuming it is and the more savings for the company. The reason why a fiscal year differs from the calendar is because that specific

Lowes is currently the second largest retailer by sales in the home improvement retail industry. It is also the 8th largest retailer in the United States and the 19th largest retailer in the world. The market cap for Lowes is currently $56.2 billion. Lowes’ stock price is currently (Dec 2) $63.83, just 31 cents off of its all time high from Nov 25. The company’s stock price has been volatile in nature since the turn of the decade in 2000. While it has been volatile, the general trend has been increasing steadily. Lowes’ stock did experience the drop in prices seen market wide during the recession in 2008 and 2009. Going from a high of $34.93 in February 2007, all the way down to $13.39 in March of 2009 (- 62%). Since September 2011 the stock price has shot up and experienced a 200% increase.

Thank you for calling me over this weekend in response to my complaint with your organization. In following up, I am memorializing the content of our conversation as I understand the facts:

In the stakeholder model, the shareholders are the people that legally own a share of stock of The Home Depot Inc. The Home Depot first became public in 1981 through the National Association of Securities Dealers Automated Quotations (NASDAQ) and 3 years later, in 1984, they moved to the New York Stock Exchange (“Our History”). In general, The Home Depot’s stock price increased during the year 2014 (see fig.1). The closing stock price in January 2014 was $76.85 and by the end of December the stock price increased to $104.97(“Historical Lookup”). This is approximately a 36% increase from the beginning to the end of 2014. Lowe’s, another home improvement retailer, is one of The Home Depot’s biggest competitor. Though The Home Depot’s stock price

The Home Depot 2012 fiscal year has been completed, so the past five years for Home Depot are 2008-2012. The fiscal year ends at the end of January, so these roughly correspond with the calendar year previous, for example FY2012 is basically calendar year 2011. The financial figures and ratios for Home Depot over the past five years are as follows:

Home Depot’s current marketing strategy fits within their industry and has benefited the company as a whole. Home Depot utilized the “four P’s” of marketing very well. The “four P’s” of marketing shape the way that companies promote their products to the customer (Tapscott, 2000). The “four P’s” of marketing are the product, price, place, and promotion. Home Depot offers a broad line of products that are ranging from professional retail services to their own brand of tools and resources.

Home Depot’s practices for the 10 strategic decisions of operations management highlight the rank of organizing and restructuring all business areas. Streamlining leads to the high efficiency of Home Depot stores. The 10 Strategic decisions of operations management are: Design of Goods and Services- Home Depot designs its goods with special attention on low pricing and pleasing quality. Quality Management- Quality management involves Home Depot’s training programs to ensure quality service. Process and Capacity Design -Home Depot uses traditional retail business approaches for process and ability design at its stores. Location Strategy- The locations are mostly near or in closely occupied centers. Based on the company’s marketing mix, their

Consolidated financial statements are the statements gives a combination of the accounts of a business and all the subsidiaries during a financial period.

The comparative common-size statements are below for past 3-5 years, including income statements (Table 1), including balance sheets (Table 2), and cash flow statements (Table 3). TASER’s Gross Profit and Net Income has been increasing. Refer to TASER’s consolidated balance sheet provided in Table 1 Common-Size Balance Sheet.

January 2000, a major shortfall in profits relative to previous expectations. In June, the quarterly