Home Depot Comprehensive Problem Essay Example
1. Calculate the current ratio for y/e 2/1/09 and y/e 1/31/10
The current ratio for year ending 2/1/09 is 1.20:1=$13,362/$11,153.
The current ratio for year ending 1/31/10 is 1.34:1=$13,900/$10,363.
Reference: Pg. A-4, Consolidated Balance Sheets, Current Assets & Current Liabilities or Pg. A-12, 10-Year Summary of Financial and Operating Results, Balance Sheet Data and Financial Ratios
2. What were the diluted earnings per share for y/e 2/3/08?
The diluted earnings for year ending 2/3/08 were $2.27 per share.
Reference: Pg. A-12, 10-Year Summary of Financial and Operating Results, Statement of Earnings Data
3. What is the company policy regarding goodwill?
Home Depot declares in the Notes to Consolidated Financial Statements section Goodwill and Other Intangible Assets found on page A-10 that “the company does not amortize goodwill”. However in the third quarter of every fiscal year or more frequently if needed, they evaluate the ability to recuperate goodwill based on the market value of each item that is being carried.
4. How many shares of common stock were outstanding at February 1, 2009? January 31, 2010
Home Depot as of Feb. 1, 2009 had 1.696 billion shares outstanding and as of Jan. 31, 2010 1.698 billion.
Reference: Pg. A-4, Consolidated Balance Sheets, Stockholders’ Equity section
5. Depreciation and amortization expense represented what percent of net earnings for y/e 2/1/09? Please carry to two decimal places
Depreciation and amortization were 9.09% of operating income in the calculation of net earnings for y/e 2/1/09.
Reference A-3, Consolidated Statement of Earnings
6. How much were the cash dividends per share in 2009? (hint--see 10 year summary)
Cash dividends in 2009 were $.90 per share.
Reference: Pg. A-12, 10-Year Summary of Financial and Operating Results, Statement of Cash Flows Data
7. What is the company debt ratio for y/e 1/31/2010?
The debt ratio for year ending 1/31/10 is
The current ratio for year ending 2/1/09 is 1.20:1=$13,362/$11,153.
The current ratio for year ending 1/31/10 is 1.34:1=$13,900/$10,363.
Reference: Pg. A-4, Consolidated Balance Sheets, Current Assets & Current Liabilities or Pg. A-12, 10-Year Summary of Financial and Operating Results, Balance Sheet Data and Financial Ratios
2. What were the diluted earnings per share for y/e 2/3/08?
The diluted earnings for year ending 2/3/08 were $2.27 per share.
Reference: Pg. A-12, 10-Year Summary of Financial and Operating Results, Statement of Earnings Data
3. What is the company policy regarding goodwill?
Home Depot declares in the Notes to Consolidated Financial Statements section Goodwill and Other Intangible Assets found on page A-10 that “the company does not amortize goodwill”. However in the third quarter of every fiscal year or more frequently if needed, they evaluate the ability to recuperate goodwill based on the market value of each item that is being carried.
4. How many shares of common stock were outstanding at February 1, 2009? January 31, 2010
Home Depot as of Feb. 1, 2009 had 1.696 billion shares outstanding and as of Jan. 31, 2010 1.698 billion.
Reference: Pg. A-4, Consolidated Balance Sheets, Stockholders’ Equity section
5. Depreciation and amortization expense represented what percent of net earnings for y/e 2/1/09? Please carry to two decimal places
Depreciation and amortization were 9.09% of operating income in the calculation of net earnings for y/e 2/1/09.
Reference A-3, Consolidated Statement of Earnings
6. How much were the cash dividends per share in 2009? (hint--see 10 year summary)
Cash dividends in 2009 were $.90 per share.
Reference: Pg. A-12, 10-Year Summary of Financial and Operating Results, Statement of Cash Flows Data
7. What is the company debt ratio for y/e 1/31/2010?
The debt ratio for year ending 1/31/10 is