Question

Table of Contents THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February 3, 2019 January 28, 2018 $ in millions, except per share data Assets Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Goodwill Other assets Total assets 1,778 $ 1,936 13,925 890 18,529 22,375 2,252 847 44,003 $ 3,595 1,952 12,748 638 18,933 22,075 2,275 1,246 44,529 $ $ $ 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 Deferred income taxes Other long-term liabilities Total liabilities 1,339 7,755 1,506 656 1,782 11 1,056 2,611 16,716 26,807 491 1,867 45,881 1,559 7,244 1,640 520 1,805 54 1,202 2,170 16,194 24,267 440 2,174 43,075 89 Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,782 at February 3, 2019 and 1,780 shares at January 28, 2018; outstanding: 1,105 shares at February 3, 2019 and 1,158 shares at January 28, 2018 Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 677 shares at February 3, 2019 and 622 shares at January 28, 2018 Total stockholders' (deficit) equity Total liabilities and stockholders' equity 89 10,578 46,423 (772) 10,192 39,935 (566) (58,196) (1,878) 44,003 $ (48,196) 1,454 44,529 $ See accompanying notes to consolidated financial statements.

1.

a)Net Working Capital

FYE 1/28/18     

FYE 2/3/19  

b)Net Operating Working Capital

FYE 1/28/18     

FYE 2/3/19     

c)After Tax Operating Income

FYE 1/28/18     

FYE 2/3/19

d)Free Cash Flow

FYE 2/3/19  

2.

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

a) Current Ratio (x)

FYE 1/28/18     

FYE 2/3/19   

Better/Worse   

b) Quick Ratio (x)

FYE 1/28/18      

FYE 2/3/19   

Better/Worse  

c) Inventory Turnover(x)

FYE 1/28/18  

FYE 2/3/19

Better/Worse

d) Days Sales Outstanding (Days)

FYE 1/28/18  

FYE 2/3/19   

Better/Worse

e) Fixed Asset Turnover (x)

FYE 1/28/18  

FYE 2/3/19   

Better/Worse

f) Total Asset Turnover (x)

FYE 1/28/18  

FYE 2/3/19   

Better/Worse

g) Total Debt to Total Capital (%)

FYE 1/28/18     %

FYE 2/3/19    %

Better/Worse

h) Times Interest Earned (x)

FYE 1/28/18  

FYE 2/3/19   

Better/Worse

i) Operating Profit Margin (%)

FYE 1/28/18      %

FYE 2/3/19    %

Better/Worse

j) Net Profit Margin (%)

FYE 1/28/18   %

FYE 2/3/19    %

Better/Worse  

k) Return on Assets (%)

FYE 1/28/18     %

FYE 2/3/19    %

Better/Worse

l) Return on Common Equity (%)

FYE 1/28/18     %

FYE 2/3/19   %

Better/Worse

m) Return on Invested Capital (%)

FYE 1/28/18     %

FYE 2/3/19    %

Better/Worse

n) Basic Earning Power (%)

FYE 1/28/18     %

FYE 2/3/19    %

Better/Worse

Answer 1

& EA-CL Buick Ratio e a to Asses - Net working capital Frites Soles Average Fined 27219 - Ancess Current dianie Not working capital & Curent Avots any 160904 set 29225 = yesu 18 pie R019 4. 1813 18.933 - 1914 1859 - 16716 312/19 4.37 22-3-15 The evex Roblo g. Sun Aveis - Tiny Current Liability 15983 - 12.148 0.365 16914 312/19 18529- 13925 = 0. 275 16716 the cow.pany has worse Quick Ratio as it is below . Te Inventary turnover ratio & Cost of Good sold Ang Inventory 66548 = 66548 = 5.20 12748+13829 12190 Co bel by total Debt to capital ratio by Net operating working capital operating cwornt. Auch 288 = 18933 - 13433 312119 8529 - 1931 operating Current diabilities 4,500 - 4708 2018 = 104a Sability So hold out 304018 24267-2174 + 15 +12 tapes 4261 13:26 3/7/19 cy After tax operating income = operating income 2018 - 14681 - 5068 - 49613 25119 = 15$30 - 3435 $12095 Blah = 5:33 tlou3 13336.5 2656 17 1867 + 1939+ los 6 XOO7 M43 th Company has better inventory turnover ratio the in gy Operating dy Free 2/3/19 profilit matic both Year Cash Flow = operating Cash Flow capital expenditure 13038 - 2442 = $ 10596 oling. Profit dy Daws su sales outstanding X160 Solo- 365 = 27 Ratio Analyses - Curont Ratio & Current Assets a Current Liability 365 Inventory thrones 70 days 5.20 14.550 19433 16914 X100 15530 X 100 & 12- 3/2/19 68 Days = 312101 - 365 5.33 14.35% 1859 16716 1.11 312119 ny sales The Company has to has better Day O REDMI NOTES 10 Days to Convent outstanding as web Net profit gation olulis = $50___*100 = .O REDMI NOTE 8 AL QUAD CAMERA 9.5500 100004 .O REDMI NOTE has better court natio m boyoan. CO AL QUAD CAMERA O AI QUAD CAMERAales. 512119 - x 60 = 10-18 of 108203