Assigment 1

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse where asked.

Please review the Home Depot Annual Report before beginning the assignment.

Below are the financial statements of HP which you should use for the group participation activity. I have also included the Excel file that you need to return to me completed with the HP data. This worksheet can be helpful in the completion of the Home Depot assignment too.

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years:

Net Working Capital

FYE  1/28/18 

FYE 2/3/19 

Please use two decimal points for your final answers.

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Question 24 pts

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years:

Net Operating Working Capital

FYE  1/28/18 

FYE 2/3/19 

Please use two decimal points for your final answers.

Tip: Use the formula NOWC = (Total Current Assets – Excess Cash) – (Total Current Liabilities – Short-Term Interest-Bearing Liabilities) and assume that Home Depot’s large cash holdings are not held for operating purposes and it’s all excess cash.

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Question 34 pts

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years:

After Tax Operating Income

FYE  1/28/18 

FYE 2/3/19 

Please use two decimal points for your final answers.

Tip: use the effective tax rates from the notes to the financials

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Question 44 pts

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the indicated fiscal year:

Free Cash Flow

FYE 2/3/19 

Please use two decimal points for your final answers.

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Question 56 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

1) Current Ratio (x)

FYE  1/28/18 

FYE 2/3/19              

Better/Worse 

Please use two decimal points for your final answers.

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Question 66 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

2) Quick Ratio (x)

FYE  1/28/18           

FYE 2/3/19               

Better/Worse        

Please use two decimal points for your final answers.

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Question 76 pts

Ratio Analysis 

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

3) Inventory Turnover(x)

FYE  1/28/18           

FYE 2/3/19              

Better/Worse        

Please use two decimal points for your final answers.

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Question 86 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

4) Days Sales Outstanding (Days) 

FYE  1/28/18  

FYE 2/3/19              

Better/Worse        

Please use two decimal points for your final answers.

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Question 96 pts

Ratio Analysis 

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

5) Fixed Asset Turnover (x)

FYE  1/28/18           

FYE 2/3/19              

Better/Worse         

Please use two decimal points for your final answers.

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Question 106 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

6) Total Asset Turnover (x) 

FYE  1/28/18           

FYE 2/3/19              

Better/Worse        

Please use two decimal points for your final answers.

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Question 116 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

7) Total Debt to Total Capital (%)

FYE  1/28/18            %

FYE 2/3/19               %

Better/Worse         

Please use two decimal points for your final answers.

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Question 126 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

8) Times Interest Earned (x)

FYE  1/28/18           

FYE 2/3/19              

Better/Worse        

Please use two decimal points for your final answers.

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Question 136 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

9) Operating Profit Margin (%)

FYE  1/28/18            %

FYE 2/3/19               %

Better/Worse 

Please use two decimal points for your final answers.

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Question 146 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

10) Net Profit Margin (%)

FYE  1/28/18            %

FYE 2/3/19               %

Better/Worse 

Please use two decimal points for your final answers.

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Question 156 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

11) Return on Assets (%)

FYE  1/28/18   %

FYE 2/3/19               %

Better/Worse        

Please use two decimal points for your final answers.

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Question 166 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

12) Return on Common Equity (%)

FYE  1/28/18   %

FYE 2/3/19               %

Better/Worse        

Please use two decimal points for your final answers.

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Question 176 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

13) Return on Invested Capital (%)

FYE  1/28/18   %

FYE 2/3/19               %

Better/Worse        

Please use two decimal points for your final answers.

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Question 186 pts

Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended February 3, 2019, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

14) Basic Earning Power (%)

FYE  1/28/18   %

FYE 2/3/19               %

Better/Worse        

Please use two decimal points for your final answers.