Home Depot Financial Analysis - 1848 Words

HOME DEPOT INC. (Note: all $ amounts are stated in millions) PART 1 a) There are 3 years covered in the following primary comparative financial statements, namely fiscal years ended 1 February 2004, 2 February 2003 and 3 February 2002: †¢ Consolidated Statement of Earnings †¢ Statement of Stockholders Equity and Comprehensive Income †¢ Consolidated Statements of Cash Flows There are 2 years covered in the Consolidated Balance Sheet, namely fiscal years ended 1 February 2004 and 2 February 2003. All of the primary comparative financial statements were audited, namely the Consolidated Balance Sheet, the Consolidated Statement of Earnings, the Statement of Stockholders Equity and Comprehensive Income and the Consolidated†¦show more content†¦f) Interest rates Management’s assessment of risk associated with interest rates is high. Exposure to market risks results primarily from fluctuations in interest rates. Their objective is to enter into derivative instruments to primarily decrease volatility of net earnings and cash flow associated with fluctuations in interest rates. They have financial instruments that are sensitive to changes in interest rate, as well as several outstanding interest rate swap agreements. Changing prices Management’s assessment of risk associated with changing prices is low. There is no material effect on Net Sales or results of operations. Therefore, there is no material risk. Self insurance Management’s assessment of risk associated with self insurance is medium. Home Depot is self insured for certain losses related to general liability, product liability, workers’ compensation and medical claims. They believe the estimates are reasonable, however, if actual trends differ from estimates, the results of operations could be impacted. Information found in Management’s Discussion and Analysis of Results of Operations and Financial Condition. PART 2 a) Refer to workings 1 to 4 in the Annexure. 1 Feb 2004 2 Feb 2003 1. Current Ratio 1.4:1 1.5:1 2. Quick Ratio 0.4:1 0.4:1 3.Amount of working capital $3,774 $3,882 4. % change in working capital -2.8% 0.6% 5. % change in cash and cash equivalentsShow MoreRelatedHome Depot Financial Analysis1759 Words   |  8 PagesOffice Depot, Inc. (â€Å"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. In fiscal year 2012 alone, Office Depot generated $10.7 billion of revenues from its products and services, yet industry reviews of this company seem unfavorable. In this FSA Case Analysis, our teamRead MoreHome Depot Financial Analysis1835 Words   |  8 PagesHOME DEPOT INC. 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