The Home Depot Inc Consolidated income Statement For Fiscal Year ended (amounts
ID: 2649178 • Letter: T
Question
The Home Depot Inc Consolidated income Statement For Fiscal Year ended (amounts in millions) 2/1/15 2/2/14 Net Sales $83,176 $78,812 Liquidity: COGS 54,222 51,422 Current Ratio Gross Profit 28,954 27,390 Quick Ratio Selling General & Admin 16,834 16,597 Debt Deprec & Amort 1,651 1,627 Debt Ratio Operating Income 10,469 9,166 Debt to Equity Interest Income 337 12 Times Interest Earned Interest Expense 830 711 Fixed-Payment Coverage Income taxes 3,631 3,082 Activity Net Income $6,345 $5,385 Inventory Turn EPS (basic) $4.74 $3.78 Average Collection Period Average Payment Period The Home Depot Inc Total Asset Turnover Consolidated Balance Sheet Profitability as of (amounts in millions) Gross Profit Margin 2/1/15 2/2/14 Operating Profit Margin Current Net Profit Margin Cash $1,723 $1,929 Earnings Per Share Receivables 1,484 1,398 Return on Total Assets Inventory 11,079 11,057 Return on Equity Other 1,016 895 Market Ratios Total Current 15,302 15,279 Price Earnings PP&E (cost) 38,513 39,064 Market/Book Accum Deprec (15,793) (15,716) Goodwill 1,353 1,289 Book Value per Share Other 571 602 Total Assets $39,946 $40,518 Current Accounts Payable $5,807 $5,797 Current portion of LT Debt 38 33 Accrued Liabilities 5,424 4,919 Total Current 11,269 10,749 Long Term Debt 19,355 17,247 Total Liabilities 30,624 27,996 Equity Common Stock (par $.05) 88 88 APIC 8,885 8,402 Retained Earnings 26,995 23,180 Accumulated OCI (452) 46 Treasury Stock (26,194) (19,194) Total Stockholder's Equity 9,322 12,522 Total Liabilities &Stockholder's Equity $39,946 $40,518 Current Stock Price (May 26, 2015) = $110.93 Calculate for FYE 2/1/2015: 1. Liquidity Ratios (current, quick, and Cash ratios) 2. Debt Management Ratios (times interest earned (accrual), long-term-debt-
to-equity, debt-to-equity, debt-to-total assets) 3. Asset Efficiency Ratios (AR Turnover, Inventory Turnover, Asset Turnover) 4. Profitability Ratios (GP%, Net Profit Margin %, Return on Assets, Return on Equity) 5. Stockholder Ratios (EPS, PE ratio) The Home Depot Inc Consolidated income Statement For Fiscal Year ended (amounts in millions) 2/1/15 2/2/14 Net Sales $83,176 $78,812 Liquidity: COGS 54,222 51,422 Current Ratio Gross Profit 28,954 27,390 Quick Ratio Selling General & Admin 16,834 16,597 Debt Deprec & Amort 1,651 1,627 Debt Ratio Operating Income 10,469 9,166 Debt to Equity Interest Income 337 12 Times Interest Earned Interest Expense 830 711 Fixed-Payment Coverage Income taxes 3,631 3,082 Activity Net Income $6,345 $5,385 Inventory Turn EPS (basic) $4.74 $3.78 Average Collection Period Average Payment Period The Home Depot Inc Total Asset Turnover Consolidated Balance Sheet Profitability as of (amounts in millions) Gross Profit Margin 2/1/15 2/2/14 Operating Profit Margin Current Net Profit Margin Cash $1,723 $1,929 Earnings Per Share Receivables 1,484 1,398 Return on Total Assets Inventory 11,079 11,057 Return on Equity Other 1,016 895 Market Ratios Total Current 15,302 15,279 Price Earnings PP&E (cost) 38,513 39,064 Market/Book Accum Deprec (15,793) (15,716) Goodwill 1,353 1,289 Book Value per Share Other 571 602 Total Assets $39,946 $40,518 Current Accounts Payable $5,807 $5,797 Current portion of LT Debt 38 33 Accrued Liabilities 5,424 4,919 Total Current 11,269 10,749 Long Term Debt 19,355 17,247 Total Liabilities 30,624 27,996 Equity Common Stock (par $.05) 88 88 APIC 8,885 8,402 Retained Earnings 26,995 23,180 Accumulated OCI (452) 46 Treasury Stock (26,194) (19,194) Total Stockholder's Equity 9,322 12,522 Total Liabilities &
Stockholder's Equity $39,946 $40,518 Current Stock Price (May 26, 2015) = $110.93 Calculate for FYE 2/1/2015: 1. Liquidity Ratios (current, quick, and Cash ratios) 2. Debt Management Ratios (times interest earned (accrual), long-term-debt-
to-equity, debt-to-equity, debt-to-total assets) 3. Asset Efficiency Ratios (AR Turnover, Inventory Turnover, Asset Turnover) 4. Profitability Ratios (GP%, Net Profit Margin %, Return on Assets, Return on Equity) 5. Stockholder Ratios (EPS, PE ratio)
Explanation / Answer
Sr No.
Particulars
Formula
Ratios
The home depot Inc.(2/1/2015)
Liquidity Ratio
1
Current ratio
Current Assets/Current liabilities
1.36
(15302/11269)
2
Quick ratio
Current asset - stock/ Current liability
0.37
(15302-11079)/(11269)
3
Absolute cash ratio
Cash Reservoir/current liability
0.15
(1723/11269)
4
Cash reservoir to total asset
Cash Reservoir/total assets
0.04
(1723/39946)
Debt Management ratio
1
Times interest earned
EBIT/Interest
13.02
(6345+3631+830)/830
2
Long term debt to equity
Long term debt/ equity
2.08
(19355/9322)
3
Debt to equity
Debt/equity
2.08
(19355+38/9322)
4
Total Debt to equity
Total outside liability/equity
3.29
(30624/9322)
5
Debt to total assets
debt/total assets
0.49
(19355+38/39946)
Asset efficiency ratios
1
account receivables turnover
Credit sales / (Debtors + bills receivables)
56.05
83176/1484
2
Inventory turnover
Cost of goods sold / Average stock
4.90
54222/11068
Average stock
(11079+11057)/2
3
Asset turnover
sales/total assets
2.08
83176/39946
Profitability ratio
1
Gross profit ratio
Gross profit/sales *100
34.81
(28954/83176)*100
2
Net profit ratio
Net profit/sales *100
7.63
(6345/83176)*100
3
Return on Assets
Net profit/total assets *100
15.88
(6345/39946)*100
4
Return on equity
Net profit/Equity *100
68.06
(6345/9322)*100
Stockholder ratio
1
EPS
Net income/no of equity shares
4.74
(Given)
2
P/E ratio
Market price of the share/ Earning per share
23.40
110.93/4.74
Sr No.
Particulars
Formula
Ratios
The home depot Inc.(2/1/2015)
Liquidity Ratio
1
Current ratio
Current Assets/Current liabilities
1.36
(15302/11269)
2
Quick ratio
Current asset - stock/ Current liability
0.37
(15302-11079)/(11269)
3
Absolute cash ratio
Cash Reservoir/current liability
0.15
(1723/11269)
4
Cash reservoir to total asset
Cash Reservoir/total assets
0.04
(1723/39946)
Debt Management ratio
1
Times interest earned
EBIT/Interest
13.02
(6345+3631+830)/830
2
Long term debt to equity
Long term debt/ equity
2.08
(19355/9322)
3
Debt to equity
Debt/equity
2.08
(19355+38/9322)
4
Total Debt to equity
Total outside liability/equity
3.29
(30624/9322)
5
Debt to total assets
debt/total assets
0.49
(19355+38/39946)
Asset efficiency ratios
1
account receivables turnover
Credit sales / (Debtors + bills receivables)
56.05
83176/1484
2
Inventory turnover
Cost of goods sold / Average stock
4.90
54222/11068
Average stock
(11079+11057)/2
3
Asset turnover
sales/total assets
2.08
83176/39946
Profitability ratio
1
Gross profit ratio
Gross profit/sales *100
34.81
(28954/83176)*100
2
Net profit ratio
Net profit/sales *100
7.63
(6345/83176)*100
3
Return on Assets
Net profit/total assets *100
15.88
(6345/39946)*100
4
Return on equity
Net profit/Equity *100
68.06
(6345/9322)*100
Stockholder ratio
1
EPS
Net income/no of equity shares
4.74
(Given)
2
P/E ratio
Market price of the share/ Earning per share
23.40
110.93/4.74
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