Premium Essay

Financial Statement Review- Home Depot

In: Business and Management

Submitted By kaylork
Words 501
Pages 3
------------------------------------------------- University of Phoenix Material

Financial Statement Review- Home Depot

The publicly traded US Corporation I chose was Home Depot, utilizing the most current fiscal year which ended February 2, 2014. “The world’s largest home improvement retailer most current On February 25, 2014, released its most current Fourth Quarter & Fiscal 2013 Results announcing a 21% increase in quarterly dividends and guidance for the 2014 Fiscal Year” (Home Depot Financial Reports, 2014).

What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to stakeholders?

Based on the Home Depot financial statements, net income for the current fiscal year ended February 2, 2014 is $5,385 million. The net income increased 18.7% from the previous fiscal year. I believe that this data would be important to stakeholders because it indicates success of the company, and potentially the health of their shares of a company. Stakeholders usually look at historical trends of net profits to assess a degree of risk associated with the company.

What is the ending balance in stockholders’ equity? What does this balance represent? Why would stakeholders potentially be interested in this information?

Based on the most recent fiscal financial statement, the ending balance in stockholders’ equity is $12,522 million, (utilizing the data released February 2, 2014). The ending balance in the stakeholders’ equity represents an outlook on a corporation’s success, an increases in a stakeholder’s equity and retained earnings propose a potential profit. Stakeholders would be potentially interested in this information since it would strengthen arguments for an increase in dividend payments.

What is the total value of assets?…...

Similar Documents

Premium Essay

Fiancial Statement Paper Part 1 Home Depot

...Home Depot, Inc Financial Statements Cari Tenan ACC/497 October 1, 2012 Teresa Jenkinson Home Depot, Inc Financial Statements In 1978 Home Depot, Incorporated was incorporated. Home Depot, Incorporated is the world’s largest home improvement retailer selling an assortment of building materials, home improvement, lawn and garden products plus numerous services. In 2008, Home Depot, Incorporated had 2,233 stores throughout the United States, Puerto Rico, the United States Virgin Islands, Guam, Canada, China, and Mexico plus a website on the Internet. The fiscal year for 2008 ended on February 1, 2009, and the financial statements give an individual an idea of how the corporation did during that fiscal year compared to the previous fiscal year (Phillips, Libby, Libby, 2011). Looking at the three major financial statements the consolidated statement of earnings or the income statement, balance sheet, and the cash flow statement, helps an individual to understand how well or not a company did during the year. An individual can even compare the financial statements with previous years to see where improvements may be needed. The consolidated statement of earnings shows the profitability of a company. The balance sheet shows the financial position of a company. The cash flow statement shows where the cash came from and what the cash was used for during a period. The consolidated statement of earnings for Home Depot Incorporated during the fiscal year 2008 shows......

Words: 1209 - Pages: 5

Premium Essay

Financial Statements Review

...Simulation Review HCS/405 September 2, 2013 Elijah Heart Center (EHC) is a healthcare organization that focuses on patients with heart problems. This 140 bed cardiac care hospital located in New York function as an advanced coronary care center, 120,000 square feet cardiac catheterization labs, surgical suits for open heart surgery, ancillary equipment for radiology, labs, nephrology, pulmonology and service for full spectrum of cardiovascular patients. There is also a full range of outpatient cardiac diagnostic services and rehab programs for patients recovering from heart attacks, open heart surgery, and coronary angioplasty. Although the organization is having some financial problems the patient volume is stable and increasing. As the senior financial consultant I will be working to get things financially under control, I will present a few plans for short and long term goals. I will be working with a great team that includes Gilbert Sanchez, Saiku Takeuchi, Zachary Macholz, and Dr. Brenda Lopez. The Elijah Heart Center has managed to stay focused and in operation do to the satisfied patients that need the services. There is a great team that provides great patient care but there has been a lot of poor decision making in the past that is resulting in a lot of profitable problems. In May 2x03 the financial department reported facing a potential working capital shortfall. In an emergency the hospital might not have enough cash to sustain......

Words: 1502 - Pages: 7

Premium Essay

Review of Financial Statements

...Review of Financial Statements University of Phoenix FIN324 Financial Analysis for Managers Joseph Brennan Introduction It is said that companies will come and go, and those that survive and left standing will teach other companies, how their survived. We will take two companies; UPS and Ebay, Inc break them down and show you how they got their start. In our paper, it will also be discussed and show a review of their financial statements from each one. The point is to get a better picture of where a company started, the competition it endured, and the money that was possibility projected for the start. This paper will also show how auditors are essential to the running of any company. Review of Financial Statements Brief overview UPS, a delivery service, has been around for about 100 years. James E. Casey started the company on $100 borrowed from a friend of his. Casey, who was 19 years old when he started UPS, had worked for delivery services before and wanted to start a better delivery system of his own. The American Messenger company, what UPS was previously called, started in Seattle, Washington and had many competitors in the beginning. His business not only survived among them, but thrived (UPS, n.d.). Today the company serves over 200 countries delivering “goods, funds, and information” (UPS, n.d., ¶ 1). UPS has several stores located in these countries, including the United States, where people can not only have their packages sent, but they can also......

Words: 1595 - Pages: 7

Premium Essay

Financial Statement Review

...Financial Statement Review Financial statements serve a pivotal role in determining the condition of any business organization for it provides suppliers, creditors, and stakeholders significant information on the business organization’s position in the business industry. In the week 1 assignment of the course Accounting 561, the student’s task is to present financial information on a particular American corporation after obtaining financial statements such as income statement, statement of stockholders equity, balance sheet, and statement of cash flows. The student chose Amazon.com, an online retailer founded in Seattle, Washington in 1994 and listed as one of Fortune 100 companies (Amazon, 2013). Amazon.com’s mission of acquiring everything people want from books, electronic and much more expanded the company globally and catered worldwide system of fulfillment and third party sellers on their website (Amazon, 2013). In this research, the student downloaded the consolidated annual financial statement of Amazon from its website and will be attached as an appendix to this paper. Income Statement Income statement provides the revenues, expenses and net income or loss of a company for a certain period of time, which is usually quarterly or yearly. In the current income statement of Amazon, it shows $61,093 (in millions) net income for the year 2012 whereas, $48,077 (in millions) net income for the year 2011 (Amazon, 2013). The net income of Amazon.com significantly......

Words: 302 - Pages: 2

Premium Essay

Predicting Financial Stress - Home Depot/Lowes

...Predicting Financial Stress 2014MAY – FSA712 Final Project Abstract This research paper will discuss methods used for measuring and predicting financial stress for business enterprises. The accounting literature includes several financial stress prediction models, the most common of which are the Altman Z-Score and Ohlson O-Score. The role of the above models is to focus on the use of financial ratios, earnings measures, market values and cash flow. Models that predict the financial stress of companies can be used as early warning tools meant to direct a company’s management to take necessary corrective action before the company goes into financial difficulty and eventual bankruptcy proceedings. This paper specifically will discuss and analyze the three main financial stress prediction models, the Altman Z-Score, Ohlson’s O-Score and Merton’s Distance to Default. The two selected companies that will be analyzed are Home Depot and Lowes’ Company. The Home Depot, Inc. operates as a home improvement retailer. The Home Depot stores sell various building materials, home improvement products, and lawn and garden products as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers. The company offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds, as well as......

Words: 2054 - Pages: 9

Premium Essay

Financial Statement Review

...Financial Statement Review Team C HCS/405 September 15, 2014 Financial Statement Review Introduction This summary review provides insight in the Patton-Fuller Community Hospital financial statement. This paper will show the relationship between the two sources of revenue and expenses on the financial report, also review the annual reports from 2008-2009, along with the difference between the two statements audited and unaudited. In addition, the paper will show how the impact of the hospital’s two revenue sources could have on the finance report and the importance group’s revenue and the costs when implementing the insider planning and controls of finance. Audited and Unaudited Financial Statement Differ The balance sheet was unaudited in 2009-2008. In 2009 the total current assets was $128,867 and in 2008 the total current asset were $130,026 so 2008 was a better year. The total assets in 2009 were $588,767 and in 2008 the total assets were $548,535. In 2009 the total current liabilities was $23,807 and in 2008 the total current liabilities was $8,380. There was less money paid out in 2008 than in 2009. The total liabilities in 2009 were $462,153 and the total liabilities paid out in 2008 were $213,450. The statement of Revenue and expenses was also unaudited in 2009 and 2008. In 2009 the total revenue was $462,982 and in 2008 the total revenue was $421,314. The revenue is the amount of money that was received by the company so in 2009 the revenue was more......

Words: 759 - Pages: 4

Free Essay

Home Depot Financial Case Study

...Weaknesses 9 Appendix E – Miscellaneous 10 Footnotes 11 Corporate History The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. In the late 1970s, they were both officers in a Southern California home-center chain called Handy Dan when turnaround artist Sanford S. Sigoloff took over Handy Dan's ailing parent company, Daylin Inc. The corporate raider was notorious for gutting senior management, but as Marcus writes in the duo's autobiography, Built From Scratch, "Handy Dan made so much money that we thought Sigoloff would be stupid to get rid of us." They thought wrong. In 1978, citing trumped up charges that they had allowed an underling to create a fund improperly used to fight a union at Handy Dan stores in San Jose, California, Sigoloff did fire Marcus and Blank. The Home Depot is a do-it-yourself, home improvement store based on excellent customer service, low prices, and a wide selection of products. The company is headquartered in Atlanta, GA, where the business began with two stores. From the start, associates offered the best customer service in the industry by guiding customers through projects such as laying tile, changing a fill valve, or handling a power tool. Store associates undergo rigorous product knowledge training. The Home Depot revolutionized the home improvement industry by providing know-how and value-based tools to the consumer. The Home Depot is the fastest growing retailer in U.S. history, particularly through its......

Words: 1848 - Pages: 8

Premium Essay

Financial Statement Review

...Financial Statement Review Team B December 10, 2014 HCS/405 Mr. Henderson The Patton-Fuller Community Hospital represents a structure organization within the healthcare setting where the highest quality of care is aimed among all employees. Although the quality of care holds a vital of importance within the healthcare organization, finance and budgeting plays a very important role as well. Finance with any organization paves the way to great success for their consumers along with their medical staff. According to the financial statements, Patton-Fuller Community Hospital has a variety of departments accepting inpatient activity allowing the organization to accumulate eighty-percent of revenue. By comparing the annual financial reports, Patton-Fuller Community Hospital has accumulated an excessive amount of debt in areas such as staffing and supplies. With continuous research, the finance department has implemented financial ratios comparing the differences between un-audited and audited statement to ensure less expenditures and ways to plan and control. The balance sheet was completely unaudited in the years of 2009-2008. During the year 2009 the over-all current assets was $128,867 and in 2008 the entire current asset was approximately $130,026 therefore in 2008 it was a much enhanced year. In 2009 the total assets listed at $588,767 and throughout 2008 the whole assets were at $548,535. In 2009 the existing liabilities was $23,807 and ongoing in 2008 the complete...

Words: 555 - Pages: 3

Premium Essay

Home Depot Financial Statements Part 1

...Home Depot Financial Statements Home Depot a hardware box chain store throughout the United States has released their 2007, 2008, and 2009 annual reports. Within Home Depots, annual reports, are financial statements that will assist in analyzing the financial standings of Home Depot from 2007 to 2009. Taking a more in-depth look at the financials statements below, which includes consolidated statements of earning, balance sheet, and cash flow helps better to understand the internal and external use of each statement. As well as analyzing how a company makes decisions based on the financial information on the statements. Consolidated Statements of Earnings Home Depot's income statement is a mirror of their expenditures versus income that will tell if Home Depot is making a profit or in a financial bind. Within the consolidated statements, are net sales that are a tool to deceiver what the company’s cost of goods are and expenses that are a percentage of the net sales. After analyzing the three principal components cost of goods, expenses, and net sales a company can make financials decisions. These decision includes whether to increase or decrease costs or cost of goods based on the companies income for a said period or at the end of the fiscal year. For example, if Home Depot were to make some cuts due to down sales then analyzing cost of goods could help to make up for low sales. A company may pull merchandise from their warehouse or only order essential items to...

Words: 1039 - Pages: 5

Premium Essay

Financial Statements Review

...Financial Statements Review Team E Jaime Jensen, Porsha Seay HCS 405 February 23, 2015 Jennifer Noren Financial Statements Review This paper is based on a case study for Patton-Fuller Community hospital. It’s a review on how to determine the annual reports differs from unaudited and audited statements. This paper will also explain the relationship between revenue sources and expenses on Patton-fuller financial performance. The effects of revenue sources on financial reporting at the hospital will also be discussed. The hospital revenue and expenses grouped for planning and control will also be explained. The balance sheet for Patton-Fuller Community Hospital for the years of 2008 and 2009 have differences in the statements provided. The audited and unaudited financial statement was different because in the statement of revenue and the expenses there was an additional provision provided that brought the account in the net come column from black to red. On the 2009 unaudited statement there was 59,787,000 and the audited statement there was 58,787,000 which accounts for the 1,000,000.When looking at the financial statements what is first noticed is that they are expressed in thousands which means all the numbers shown will have zeros added to the end. When writing in thousands a number written as 16,000 on the statement is actually 16,000,000. When looking at the differences between the audited and the unaudited statements there is a one million dollar......

Words: 542 - Pages: 3

Premium Essay

Review Essay: Home Depot

...I think the biggest personal reward of being a manager is that a manager is in a way the face of the company. His or her managing style will ultimately bring the company great success or failure. If I were a manager, I would feel my greatest reward to be the satisfaction of knowing I am leading the company in the right direction. The position of a manager entails: planning, organizing, directing, and controlling. All of which require great attention and the ability to make the best possible choice that will benefit the company. The biggest potential ‘downside’ of being a manager would be making a bad decision that will damage a company. A great example of the downside of being a manager is when Bob Nardelli became CEO of Home Depot in 2000. Nardelli implemented an aggressive plan to institute controls that effectively centralized many merchandise and supply decisions. Nardelli’s changes created greater discipline and more structure throughout the company, but also led to unexpected consequences. Local managers became unhappy with their loss of autonomy and flexibility and thus the morale among store managers and employees drastically declined and turnover occurred. I believe that to be an effective manager, one must have an equal mix of technical, interpersonal and conceptual skills. A balance of the three skills will result in a well-rounded manager capable of managing various types of companies. An overreliance on one skill can reduce a manager’s effectiveness. For......

Words: 416 - Pages: 2

Premium Essay

Financial Statement Paper Part I Home Depot

...Financial Statement Paper Part I Armanda Gamboa ACC/497 May 25, 2015 Silvana Moffitt Financial Statement Paper Part I Upon making business decisions there are three types of financial statements that should be looked at and reviewed prior to making any decision. The three statements are the consolidated statement of earnings (income statement), balance sheet, and the statement of cash flows. The income statement will prove the company’s profitability, the balance sheet will provide a look at the company’s financial stand, and the statement of cash flow will tell where the cash came from and where the cash is going. Home Depot Inc. is a large home improvement retailer that has over 2,200 stores worldwide and has been in business since 1978. Looking at the financial statements for the year 2008 means there are several previous years that can be compared these statements. This will allow anyone who is curious about the financial situation of Home Depot to compare statements to previous years to determine the growth and success of the business. While reviewing the consolidated financial statement for Home Depot Inc year 2008 it proved that due to the decline in the economy there was a decline in revenue for them as well compared to their 2007 statement. The difference in net earnings from 2007 to 2008 are proven to be extremely large at 50% decline. On the 2007 income statement net earnings were at $4.4 billion with diluted earnings per share of $2.37 which is now......

Words: 895 - Pages: 4

Premium Essay

Home Depot Financial Analysis

...Home Depot Financial Analysis Introduction Home Depot is an American public corporation founded in 1978 (Homer, 2011). Home Depot’s shares are listed in the New York Securities Exchange with the abbreviation HD. The company retails construction and home improvement commodities and services. Home Depot runs stores of the big-box format across the United States, Mexico and Canada. Home Depot’s headquarters are in Cobb County, Atlanta. Home Depot is the largest retailer of home improvement products based on the revenue reports filled at the Securities Exchange Commission. This paper shall present a financial analysis of Home Depot. a) Current Ratio The current ratio is not only a liquidity ratio but also an efficiency ratio. It reflects a company’s ability to fulfill its short term financial obligations using its current assets. A healthy current ratio is above one while an unhealthy ratio is less than one. A current ratio that is greater than one means that the firm can meet its current liabilities with ease and without pressuring the liquid assets of the company. A very high current ratio is not ideal since it means that the company has tied too much of its resources on short term assets. However, a ratio that is less than one show that the company has problems in settling its short term financial obligations (Wang, 2008). Home Depot’s current ratio is 1.4 for both 2015 and 2014 financial years. The ratio of 1.4 is healthy since it is greater than one. The ratio shows...

Words: 2775 - Pages: 12

Premium Essay

The Financial Analysis of Home Depot

...The Financial Analysis of The Home Depot By: The CPT Consulting Group 10-3-11 CPT Consulting Group Table of Contents I. Introduction II. Board of Directors and Corporate Governance III. WACC and Capital Structure IV. Degree of Operating leverage V. Dividends VI. Conclusions VII. Appendix I. Introduction The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. The home depot Inc., collectively with its subsidiaries, operates as a home improvement retailer. The company sells a wide variety of building materials, home improvement products, and lawn and garden products for the do-it-your-self customer, the do-it-for-me customer, and the professional customer. Today The Home Depot provides installation options for: carpeting, tile flooring, cabinets, water heaters, furnaces, and central air systems to name a few. The founders’ originally had a vision of a one stop shopping store for the do-it–your- self customer, and later went on to expand the business into the do-it-for-me customer. Mr. Marcus and Mr. Blank opened the first Home Depot store on June 22, 1979 in Atlanta, Georgia. In 1981, the company went public on NASDAQ and moved to the New York Stock Exchange (NYSE:HD) in 1984. The Home Depot, Inc. is the world's largest home improvement specialty retailer and the fourth largest retailer in the United States with fiscal 2010 retail sales of $68.0 billion and earnings from continuing operations of $3.3 billion...

Words: 2931 - Pages: 12

Free Essay

Home Depot Book Review

...From Scratch: How a Couple of Regular Guys Grew the Home Depot from Nothing to $30 Billion, tells the story of Bernie Marcus and Arthur Blank, and how they are responsible for one of the biggest entrepreneur successes in recent history. This novel shows, first hand, how they became leaders within the home improvement industry. This was no easy task, but these two had experience. Bernie’s parents immigrated to America, and he grew up in a poor neighborhood, Newark, New Jersey. He dreamed of working in medicine, but could not afford the kickback he needed to pay Harvard Medical School to circumnavigate the quota they had at the time for people of Jewish ancestry. Bernie soon graduated from Rutgers, Newark, and worked as an intern in a pharmaceutical company. One day a customer came in that forever changed his life. Bernie was introduced to the world of discount stores when he met a man named Danny Kessler. A few years later Bernie worked alongside Arthur blank within one of the most successful home improvement chains at the time, Handy Dan’s Home improvement center. Bernie became the President and CEO, and Arthur was the vice president of finance. They were eventually fired, and faced legal trouble due to a false accusation. It was at this time that they decided to open up their own home improvement store, one that captured their own core values. They had high hopes of a store that far surpassed Handy Dan’s Home improvement center. The idea was to build a......

Words: 1570 - Pages: 7

[Complete - Full] Life is Paradise, Spanish Modded ver 2.2 - English translation | Ilha do Medo ONLINE | Kürzeste Entfernung