Access over 35 million academic & study documents

acc_497__week_3

Content type
User Generated
Subject
Business
Type
Study Guide
Showing Page:
1/7
Home Depot Analysis II 1
Week 3 Financial Statements Paper II
Eric Ducote
ACC 497
September 22, 2014
Rick Kwan

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/7
Home Depot Analysis II 2
Home Depot Analysis II
Home Depot is a major national retail chain that operates in the home improvement
industry. The company sells building materials and home improvement products. The second
part of the Financial Statements paper will look at the financial statements of Home Depot to
ascertain how effective the company’s management is in achieving its goals and mission
statement to the stakeholders. The analysis will include the use of vertical analysis, trend
analysis, and ratio analysis to achieve to support the findings.
A vertical analysis is a report that reports each amount on a financial statement as a
percentage of another item. In performing the vertical analysis we need to look at the economic
conditions of 2008. Mortgages started failing in the early months of 2008. Several guarantees of
mortgage loans were placed under governmental conservatorship including Fannie Mae and
Freddie Mac, which resulted in the U.S. Treasury Department supplying funds to help stabilize
these companies, raising the national debt ceiling in the process (Stock Market Crash of 2008).
As a retail company in the home improvement and home building materials industry,
Home Depot was hit hard by the economic condition resulting in the company’s retail sales
declining by 7.8 percent and its adjusted earnings per share declining by 22 percent in 2008.
In the 2008 Home Depot Annual report, the company Chairman and the Chief Executive
Officer, Francis S. Blake, advised that he viewed this year as not being a very ordinary year, with
very poor results. The Management’s Discussion and Analysis of Financial Condition and
Results of Operations sections of the report reported the necessity of closing additional 14
underperforming stores and the removal of approximately 15 stores from the company’s new
store opening pipeline, the continued focus on the company’s core retail business sustained with

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/7

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 7 pages?
Access Now
Unformatted Attachment Preview
 Week 3 Financial Statements Paper II Eric Ducote ACC 497 September 22, 2014 Rick Kwan Home Depot Analysis II Home Depot is a major national retail chain that operates in the home improvement industry. The company sells building materials and home improvement products. The second part of the Financial Statements paper will look at the financial statements of Home Depot to ascertain how effective the company’s management is in achieving its goals and mission statement to the stakeholders. The analysis will include the use of vertical analysis, trend analysis, and ratio analysis to achieve to support the findings. A vertical analysis is a report that reports each amount on a financial statement as a percentage of another item. In performing the vertical analysis we need to look at the economic conditions of 2008. Mortgages started failing in the early months of 2008. Several guarantees of mortgage loans were placed under governmental conservatorship including Fannie Mae and Freddie Mac, which resulted in the U.S. Treasury Department supplying funds to help stabilize these companies, raising the national debt ceiling in the process [ CITATION Sto \l 1033 ]. As a retail company in the home improvement and home building materials industry, Home Depot was hit hard by the economic condition resulting in the company’s retail sales declining by 7.8 percent and its adjusted earnings per share declining by 22 percent in 2008. In the 2008 Home Depot Annual report, th ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Studypool
4.7
Indeed
4.5
Sitejabber
4.4

Similar Documents