Financial Statement Paper Part 1: Home Depot, Inc.

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Financial Statement Paper Part 1 Christina Williams ACC/497 April 12, 2015 Carolyn Lundy Financial Statement Paper “A good financial plan is a road map that shows us exactly how the choices we make today will affect our future” (Alexa Von Tobel). The Home Depot, Inc. is one of the world’s largest home improvement retailer and the fourth largest retailer in the United States. Home Depot is known for selling a variety of raw building materials, garden and lawn products to either Do-It-Yourself or Commercial Customers. In addition to the Do-It-Yourself they offer Do-It-For-Me customers they arrange for the installation of a variety of The Home Depot products through qualified independent contractor. The Home Depot stores are mainly located…show more content…
An instantaneous examination of income statements reads that there were strong sales figures with a worth around $70 billion sales per year. Nonetheless, there was something that caught my eye in 2009, which was the critical drop in sales paralleled to previous years. In 2009 Home Depot net sales plummeted approximately 7.8% compared to the net earnings that were dejected in 48.5% in 2009. In the 2009, dividends were declared quarterly at $0.22500 per share while in July the market price was roughly $28.51 per share. Notwithstanding increasing dividends and a moderately stable share price, the home improvement retail industry remains to struggle due to the fragmentary world wide economic complications. Throughout 2009 Home Depot recorded expenses as much higher as well as the drop in sales. While Home Depot the company is very strong, the drop in sales and net earnings brought fourth some restraints until the economy shows signs of improvement. With this in mind The Home Depot, Inc. initiated strategies in the fiscal year 2008, to help minimize losses while maintaining a strong customer base. Which in turn may have the company to increase their credit programs for consumers with the intention to increase sales. These measures included closing all specialty retail stores such as the EXPO Design Center, THD Design Center, Yard birds, and HD Bath. By doing so…show more content…
Home Depot balance sheets report the company´s liabilities, equity, and assets at a precise time. Liabilities and Assets are separated into short- and long-term obligations including cash accounts such as government securities, money market and checking. At specified time, assets must equal liabilities plus owners' equity. Balance sheets clarify and evaluate trends, predominantly in the area of receivables and payables. Home Depot´s balance sheet shows that they reduce their existing liabilities and long-term liabilities. By eliminated up to $1.7 billion in short term debt, Home Depot efficaciously condensed the amounts of payable income just short of a billion dollars. By effectively doing that moving forward Home depot will have less liability hence creating less expenses which is less turmoil for the company to get through trying times. Additionally, Home Depot when at a substantial point when net earnings drop recorded a $63 million dollar upsurge in stock holder´s

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