Skip to content
Solved Assignments

ACC 497 Home Depot Analysis II Week 3 Financial Statements Paper II

Detailed review of Home Depot�s financial statements.

Preview 3 of 7 pages

See the first 3 pages exactly as they appear in the document.

  1. Page 1
    Read page 1 as text

    Home Depot Analysis II 1 Week 3 Financial Statements Paper II Eric Ducote ACC 497 September 22, 2014 Rick Kwan In your analysis of Home Depot's financial performance during the 2008 economic downturn, you used vertical analysis, ratio analysis, and trend analysis to evaluate the company’s performance and management decisions. Given that Home Depot faced significant challenges due to the recession, how well did the company's management team adapt to the situation? Specifically, how did their financial strategies, such as debt reduction, store closures, and capital investments, align with their long - term goals and mission statement? Please support your response with evidence from the financial statements and management’s discussion in the 2008 annual report. Word Count Requirement: 500 - 700 words

  2. Page 2
  3. Page 3
    Read page 3 as text

    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 nation al 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

4 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Accounting study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.