Home Depot Capital Structure

Unit 6 Research Paper
Presented in Partial Fulfillment
Of the Requirements for the Class
GB 550-05NA: Financial Management
25 May 2010

Table of Contents
Abstract...........................................................................................................................................3
History of Home Depot…………………………………………………………………………....4
Business risks related to capital structure…………………………………………………………5
Financial risk related to capital structure………………………………………………………….5
Home Depots Financial Status………….…………………………………………………............6
Future and Flexibility of Home Depot….…………………………………………………………7
Conclusion………………………………………………………………………………………...8
References…………………………………………………………………………………………9
Abstract

When
For a company that we are all so familiar with, it comes at a surprise that the business is only 30 years young. After being fired in 1978 from executive positions, Bernie Marcus and Arthur Blank joined forces to design the concept of, “…a home improvement warehouse with the lowest prices, best selection, and best service” (Blank & Marcus, 1999). Tom Sternberg, founder and former CEO of Staples, reveres Bernie Marcus and Arthur Blank as, “…the two greatest entrepreneurs in American business history,” and felt that they had, “built the single best culture of any business…an extremely people-focused business in regard to both Home Depot’s customers and, even more important, its employees” (Goldstein, 2007). Today, the business has expanded to all fifty states, Canada, Mexico, and China. Yet, headquarters still remains located in the North American southern city of Atlanta, Georgia. The founders have since retired and current CEO, Frank Blake, now runs the business. In 1999 the Home Depot had established 775 stores, acquired 160,000 associates, and made $30 billion in sales (Roush, 1999). In 2008, Home Depot sales totaled $ 71.88 billion and the number of stores representing Home Depot tallied up to 2,193 (homedepot.com,