Annual Report Project

The Home Depot Fiscal 2012

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First Name: Meng Instructor:

Last Name: Vang Class Time:
Id Code: 21575848 Seat # or Student Id #:

Print Home Depot's Financial Statements

To print Home Depot's financial statements, follow the directions below.

After you print the financial statements, fill-in the three basic information questions on this page.

This ARP is for Home Depot's 2012 fiscal year which ended on February 3, 2013. Be sure to print
and use the 2012 fiscal year financial statements. Depending on when you are doing this ARP, it is
possible that Fiscal 2013's financial statements will have been released. See your instructor if
you have any questions concerning the fiscal year of the financial statements.

Use Adobe Acrobat to open the file Home Depot 2012 Annual Report.pdf. This file is located
in the Company Financial Statements folder that is under the RedCompany8e folder.

Print the following from Home Depot's Fiscal 2012 Annual Report:
> Report of Independent Registered Public Accounting Firm (PDF pg 2 / report pg 29)
> Consolidated Balance Sheets (PDF pg 3 / report pg 30)
> Consolidated Statements of Earnings (PDF pg 4 / report pg 31)
> Consolidated Statements of Stockholders' Equity (PDF pg 6 / report pg 33)
> Consolidated Statements of Cash Flows (PDF pg 7 / report pg 34)
> Notes to Consolidated Financial Statements
(print the first 3 pages of the Notes located on PDF pgs 8 to 10 / report pgs 35 to 37)

Be careful not to print out the entire annual report. Get to the correct page in the
PDF document, select File, then Print, then Current Page.

1. Home Depot's Fiscal 2012 year ended on what date?

(mm/dd/yyyy)
2. List the name of Home Depot's
Independent Registered Public Accounting Firm:

3. Revenue Recognition
Record below when Home Depot recognizes revenue from the sale of merchandise. This information can
be found in Home Depot's Notes to Consolidated Financial Statements under the heading "Revenues".
Home Depot -- 2012 Pg. 2

Vertical Analysis of the Income Statement (Common-Size Statements)

Use the data from Home Depot's Consolidated Statements of Earnings to fill in Fiscal 2012 below.
Enter the amounts exactly as they are shown on the financial statement, which are in millions.

The Home Depot, Inc.

Consolidated Statements of Earnings
(Dollars in Millions)

Fiscal 2012 Fiscal 2011 Fiscal 2010

ended February 3, 2013 ended January 29, 2012 ended January 30, 2011
Dollars % Dollars % Dollars %

Net Sales $ 74,754 100.00% $ 70,395 100.00% $ 67,997 100.00%

Cost of Sales 48,912 65.43% 46,133 65.53% 44,693 65.73%
Gross Profit 25,842 34.57% 24,262 34.47% 23,304 34.27%
Operating Expenses:
Selling, General and Administrative 16,508 22.08% 16,028 22.77% 15,849 23.31%
Depreciation and Amortization 1,568 2.10% 1,573 2.23% 1,616 2.38%
Total Operating Expenses 18,076 24.18% 17,601 25.00% 17,465 25.68%
Operating Income 7,766 10.39% 6,661 9.46% 5,839 8.59%
Interest and Other (Income) Expense:
Interest and Investment Income (20) (0.03%) (13) (0.02%) (15) (0.02%)
Interest Expense 632 0.85% 606 0.86% 530 0.78%
Other (67) (0.09%) 0 0.00% 51 0.08%
Interest and Other, net 545 0.73% 593 0.84% 566 0.83%
Earnings Before Provision for Income Taxes 7,221 9.66% 6,068 8.62% 5,273 7.75%
Provision for Income Taxes 2,686 3.59% 2,185 3.10% 1,935 2.85%
Net Earnings $ 4,535 6.07% $ 3,883 5.52% $ 3,338 4.91%
** ** **
Basic Earnings per Share $3.03 $2.49 $2.03

** % columns may not add-up due to rounding

Home Depot -- Fiscal 2012 Pg. 3

Horizontal Analysis of the Income Statement

Enter the amounts for Fiscal 2012 for the following income statement items. Then calculate and enter the
Dollar Change and the % Change from Fiscal 2011 to Fiscal 2012. Enter the dollar amounts just as they are
shown on the financial statement. Round the percentages to 2 decimal places. xx.xx%

Dollar Change Dollar Change

Fiscal % Change Fiscal % Change Fiscal
2012 2011 to 2012 2011 2010 to 2011 2010
$xxx,xxx $xxx,xxx
Net Sales $74,754 $4,359 $70,395 $2,398 $67,997
6.19 % 3.53 %
xx.xx%
$xxx,xxx $xxx,xxx
Cost of Sales $48,912 $2,779 $46,133 $1,440 $44,693
6.02 % 3.22 %
xx.xx%
$xxx,xxx $xxx,xxx
Gross Profit $25,842 $1,580 $24,262 $958 $23,304
6.51 % 4.11 %
xx.xx%
$xxx,xxx $xxx,xxx
Total Operating Expenses $18,076 $475 $17,601 $136 $17,465
2.70 % 0.78 %
xx.xx%

$xxx,xxx $xxx,xxx
Operating Income $7,766 $1,105 $6,661 $822 $5,839
16.59 % 14.08 %
xx.xx%
$xxx,xxx $xxx,xxx
Provision for $2,686 $501 $2,185 $250 $1,935
Income Taxes 22.93 % 12.92 %
xx.xx%
$xxx,xxx $xxx,xxx
Net Earnings $4,535 $652 $3,883 $545 $3,338
16.79 % 16.33 %
xx.xx%
$xx.xx $xx.xx
Basic Earnings Per Share $3.03 $0.54 $2.49 $0.46 $2.03
21.69 % 22.66 %
xx.xx%
Home Depot -- 2012 Pg. 4

Vertical Analysis of the Balance Sheet (Common-Size Statements)

Use the data from Home Depot's Consolidated Balance Sheets to fill in Fiscal 2012 below.
Enter the amounts, exactly as they are shown on the financial statement, which are in millions.

The Home Depot

Consolidated Balance Sheets
(Dollars in Millions)
Fiscal 2012 Fiscal 2011
as of February 3, 2013 as of January 29, 2012
Dollars % Dollars %
Assets
Current Assets:
Cash and Cash Equivalents $ 2,494 6.07% $ 1,987 4.90%
Receivables, net 1,395 3.40% 1,245 3.07%
Merchandise Inventories 10,710 26.07% 10,325 25.48%
Other Current Assets 773 1.88% 963 2.38%
Total Current Assets 15,372 37.42% 14,520 35.84%
Property and Equipment, at cost 38,491 93.69% 38,975 96.19%
Less Accumulated Depreciation and Amortization 14,422 35.10% 14,527 35.85%
Net Property and Equipment 24,069 58.58% 24,448 60.34%
Notes Receivable 140 0.34% 135 0.33%
Goodwill 1,170 2.85% 1,120 2.76%
Other Assets 333 0.81% 295 0.73%
Total Assets $ 41,084 100.00% $ 40,518 100.00%

Liabilities and Stockholders' Equity

Current Liabilities:
Accounts Payable $ 5,376 13.09% $ 4,856 11.98%
Accrued Salaries and Related Expenses 1,414 3.44% 1,372 3.39%
Sales Taxes Payable 472 1.15% 391 0.97%
Deferred Revenue 1,270 3.09% 1,147 2.83%
Income Taxes Payable 22 0.05% 23 0.06%
Current Installments of Long-Term Debt 1,321 3.22% 30 0.07%
Other Accrued Expenses 1,587 3.86% 1,557 3.84%
Total Current Liabilities 11,462 27.90% 9,376 23.14%

Long-Term Debt, excluding current installments 9,475 23.06% 10,758 26.55%

Other Long-Term Liabilities 2,051 4.99% 2,146 5.30%
Deferred Income Taxes 319 0.78% 340 0.84%
Total Liabilities 23,307 56.73% 22,620 55.83%

Stockholders' Equity:
Common Stock 88 0.21% 87 0.21%
Paid-In Capital 7,948 19.35% 6,966 17.19%
Retained Earnings 20,038 48.77% 17,246 42.56%
Accumulated Other Comprehensive Income 397 0.97% 293 0.72%
Treasury Stock, at cost (10,694) (26.03%) (6,694) (16.52%)
Total Stockholders' Equity 17,777 43.27% 17,898 44.17%
Total Liabilities and Stockholders' Equity $ 41,084 100.00% $ 40,518 100.00%
** **

** % columns may not add-up due to rounding

Home Depot -- Fiscal 2012 Pg. 5

Horizontal Analysis of the Balance Sheet

For the following balance sheet items enter the amounts for Fiscal 2012, and then
calculate the Dollar Change and the % Change from 2011 to 2012. Enter the 2012
dollar amounts as shown on the financial statement, which are in millions.
Round the percentages to 2 decimal places. xx.xx%

Dollar Change
Fiscal % Change Fiscal
2012 2011 to 2012 2011
$xxx,xxx $xxx,xxx
Cash and Cash Equivalents $2,494 $507 $1,987
25.52 %
xx.xx%
$xxx,xxx $xxx,xxx
Merchandise Inventories $10,710 $385 $10,325
3.73 %
xx.xx%
$xxx,xxx $xxx,xxx
Total Assets $41,084 $566 $40,518
1.40 %
xx.xx%
$xxx,xxx $xxx,xxx
Accounts Payable $5,376 $520 $4,856
10.71 %
xx.xx%
$xxx,xxx $xxx,xxx
Total Current Liabilities $11,462 $2,086 $9,376
22.25 %
xx.xx%
$xxx,xxx $xxx,xxx
Long-Term Debt, $9,475 ($1,283) $10,758
excluding current installments (11.93) %
xx.xx%
$xxx,xxx $xxx,xxx
Total Liabilities $23,307 $687 $22,620
3.04 %
xx.xx%
$xxx,xxx $xxx,xxx
Retained Earnings $20,038 $2,792 $17,246
16.19 %
xx.xx%
$xxx,xxx $xxx,xxx
Total Stockholders' Equity $17,777 ($121) $17,898
(0.68) %
xx.xx%
Home Depot -- Fiscal 2012 Pg. 6 CA
Do NOT d
DuPont Analysis -- Return on Assets on any c

Apply DuPont Analysis and the Return on Assets % to evaluate Home Depot's overall financial performance.

Use the information in Home Depot's Income Statement and Balance Sheets for Fiscal 2012 and Fiscal 2011 to
calculate the four DuPont Ratios and the Return on Assets %. In the left-hand column enter the names
of the financial statement items that will be used in the numerator and the denominator of the ratios.
Enter the financial statement dollar amounts just as they are shown on the financial statements.
Round all averages to 0 decimal places -- a whole number $xxx,xxx
Round the percentages to 2 decimal places. xx.xx%
Round the decimal results to 2 decimal places. xx.xx

Note: Since each ratio is being rounded, it is possible that Return on Equity %
will not exactly equal (Profitability x Efficiency x Leverage).
Tip: When e
Calculate each ratio separately. Do not calculate Return on financial stat
Equity % by multiplying (Profitability x Efficiency x Leverage). terminology t
financial stat
graded by th
DuPont Analysis
might be gra

(Profitability) 2012 2011

Net Profit Margin %
$xxx,xxx
Net Earnings $4,535 xx.xx%
6.07 % 5.52 %
Net Sales $74,754
Tip: If you us
$xxx,xxx x x Average cell
(Efficiency) function to ro
Total Assets Turnover Ratio For example,
$xxx,xxx calculate the
Sales $74,754 xx.xx result to 0 de
Beg. Yr. Amt. End. Yr. Amt. Average 1.82 times 1.75 =Round(( E3
Average Total Assets $40,518 $41,804 $41,161
$xxx,xxx $xxx,xxx $xxx,xxx x x
(Leverage)
Assets-to-Equity Ratio
$xxx,xxx
Total Assets $41,084 xx.xx

Beg. Yr. Amt. End. Yr. Amt. Average 2.30 to 1 2.19 Tip: The calc
and the calcu
Average Stockholder's Equity $17,898 $17,777 $17,838
Stockholders
$xxx,xxx $xxx,xxx $xxx,xxx = = time you nee
you calculate
that average
Return on Equity % ratio calculat
$xxx,xxx
Net Earnings $4,535
25.42 % 21.11 %
Average Stockholder's Equity $17,838 xx.xx%
$xxx,xxx

Return on Assets
2012 2011
Return on Assets %
$xxx,xxx
Net Earnings $4,535 xx.xx%
11.02 % 9.63 %
Average Total Assets $41,161
$xxx,xxx
Home Depot -- Fiscal 2012 Pg. 7

Profitability Indicators

Apply the three Profitability Indicators to evaluate Home Depot's profitability.

Use the information in Home Depot's 2012 Income Statement to calculate the three
Profitability Indicators. In the left-hand column enter the names of the items
that will be used in the numerator and the denominator of the ratios.
Enter the financial statement dollar amounts just as they are shown on the
financial statements.
Round the percentages to 2 decimal places. xx.xx%

2012 2011
Gross Profit Margin %
$xxx,xxx
Gross Profit $25,842
34.57 % 34.47 %
Net Sales $74,754 xx.xx%
$xxx,xxx

Operating Profit Margin %

$xxx,xxx
Operating Income $7,766
10.39 % 9.46 %
Net Sales $74,754 xx.xx%
$xxx,xxx

Net Profit Margin %

$xxx,xxx
Net Income $4,535
6.07 % 5.52 %
Net Sales $74,754 xx.xx%
$xxx,xxx
Home Depot -- Fiscal 2012 Pg. 8

Efficiency Indicators

Apply the Efficiency Indicators to drill down into Home Depot's efficiency.

Use the information in Home Depot's Income Statement and Balance Sheets for Fiscal 2012 and Fiscal 2011 to
calculate the Efficiency Indicators. In the left-hand column enter the names of the financial
statement items that will be used in the numerator and the denominator of the ratios.
Enter the financial statement dollar amounts just as they are shown on the financial statements.
Round all averages to 0 decimal places -- a whole number $xxx,xxx
Round the decimal results to 2 decimal places. xx.xx

2012 2011
Accounts Receivable Turnover Ratio
$xxx,xxx
Net Sales $74,754
Beg. Yr. Amt. End. Yr. Amt. Average 56.63 times 60.42
Average Accounts Receivable, net $1,245 $1,395 $1,320 xx.xx
$xxx,xxx $xxx,xxx $xxx,xxx

Number of Days' Sales in Receivables

xxx
Days in a Year (365) 365
6.45 days 6.04
Accounts Receivable Turnover Ratio 56.63 xx.xx
xx.xx

Inventory Turnover Ratio

$xxx,xxx
Cost of Sales $48,912
Beg. Yr. Amt. End. Yr. Amt. Average 4.65 times 4.40
Average Inventory $10,325 $10,710 $10,518 xx.xx
$xxx,xxx $xxx,xxx $xxx,xxx

Number of Days' Sales in Inventory

xxx
Days in a Year (365) 365
78.49 days 82.95
Inventory Turnover Ratio 4.65 xx.xx
xx.xx

Accounts Payable Turnover Ratio

$xxx,xxx
Cost of Sales $48,912
Beg. Yr. Amt. End. Yr. Amt. Average 9.56 times 9.64
Average Accounts Payable $4,856 $5,376 $5,116 xx.xx
$xxx,xxx $xxx,xxx $xxx,xxx

Number of Days'
Purchases in Accounts Payable
xxx
Days in a Year (365) 365
38.18 days 37.86
Accounts Payable Turnover Ratio 9.56 xx.xx
xx.xx

Cash-to-Cash Cycle
xx.xx
Number of Days' Sales in Inventory 78.49 82.95
less Number of Days' Purchases in Accounts Payable (38.18) (37.86)
Net Number of Days Cash is Invested in Inventory 40.31 45.09
plus Number of Days' Sales in Receivables 6.45 6.04
Cash-to-Cash Days 46.76 51.13

2012 2011
Fixed Asset Turnover Ratio
$xxx,xxx
Net Sales $74,754
Beg. Yr. Amt. End. Yr. Amt. Average 3.08 times 2.84
Average Net Fixed Assets $24,448 $24,069 $24,259 xx.xx
$xxx,xxx $xxx,xxx $xxx,xxx
Home Depot -- Fiscal 2012 Pg. 9

Leverage Indicators (at year-end) -- Interest Coverage

Use the information in Home Depot's 2012 Balance Sheet and Income Statement to calculate
the two "year-end" Leverage Indicators and the Times Interest Earned Ratio. In the
left-hand column enter the names of the items that will be used in the numerator
and the denominator of the ratios.
Enter the financial statement dollar amounts just as they are shown on the
financial statements.
Round the percentages to 2 decimal places. xx.xx%
Round the decimal results to 2 decimal places. xx.xx

2012 2011
Debt %
$xxx,xxx
Total Liabilities $23,307
56.73 % 55.83 %
Total Assets $41,084 xx.xx%
$xxx,xxx

Debt-to-Equity Ratio
$xxx,xxx
Total Liabilities $23,307
1.31 to 1 1.26
Total Stockholder's Equity $17,777 xx.xx
$xxx,xxx

Times Interest Earned Ratio

$xxx,xxx
Earnings before interest and taxes $7,853
12.43 times 11.01
Interest Expense $632 xx.xx
$xxx,xxx
Home Depot -- Fiscal 2012 Pg. 10

Liquidity Indicators
Use the information in Home Depot's 2012 Balance Sheet to calculate the three Liquidity
Indicators. In the left-hand column enter the names of the items that will be
used in the calculation.

Enter the financial statement dollar amounts just as they are shown on the
Balance Sheet.

Round the decimal results to 2 decimal places. xx.xx

2012 2011
Working Capital
$xxx,xxx
Current Assets $15,372
Less: Current Liabilities 11,462
Working Capital $3,910 $5,144

Current Ratio
$xxx,xxx
Current Assets $15,372
1.34 to 1 1.55
Current Liabilities $11,462 xx.xx
$xxx,xxx

(Acid Test Ratio)

Quick Ratio
$xxx,xxx
Cash and Near-Cash Assets $3,889
0.34 to 1 0.34
Current Liabilities $11,462 xx.xx
$xxx,xxx
Home Depot -- Fiscal 2012 Pg. 11

Statement of Cash Flows Indicators

Use the information in Home Depot's 2012 Consolidated Statements of Cash Flows to calculate
the three Statement of Cash Flows Indicators. In the left-hand column enter the names
of the items that will be used in the calculation.

Enter the financial statement dollar amounts in millions of dollars as shown on the
Consolidated Statements of Cash Flows.

Round the decimal results to 2 decimal places. xx.xx

(Quality of Income Ratio) 2012 2011

Cash Flow to Net Income Ratio
$xxx,xxx
Net Cash Provided by Operating Activities $6,975
1.54 to 1 1.71
Net Earnings $4,535 xx.xx
$xxx,xxx

(Cash Flow Adequacy Ratio)

Cash Flow to Capital Expenditures Ratio
$xxx,xxx
Net Cash Provided by Operating Activities $6,975
5.53 to 1 5.71
Net Cash Paid to Purchase PP&E $1,262 xx.xx
$xxx,xxx

Free Cash Flow

$xxx,xxx
Net Cash Provided by Operating Activities $6,975
Net Cash Paid to Purchase PP&E 1,262
Cash Dividends Paid 1,743
Free Cash Flow $3,970 $3,854
Home Depot -- Fiscal 2012 Pg. 12

Equity Investor Indicators

Use the information in Home Depot's Consolidated Statements of Stockholders'
Equity to calculate Home Depot's Dividend Payout %.
Use the information in Home Depot's Consolidated Statements of Stockholders' Equity
and Home Depot's Year-End Closing Market Price of 1 Common Share to calculate
Home Depot's Dividend Yield %.
Enter the financial statement dollar amounts just as they are shown on the
financial statements.
Round the percentages to 2 decimal places. xx.xx%
Round the decimal results to 2 decimal places. xx.xx

2012 2011
Dividend Payout %
$xxx,xxx
Total Cash Dividends Declared $1,743
38.43 % 42.03 %
Ner Earnings $4,535 xx.xx%
$xxx,xxx

Year-End Closing Market

Price of 1 Common Share
Use the following directions to lookup the closing market price of Home Depot's Common Stock:
1. On the internet go to http://finance.yahoo.com
2. Enter Home Depot's ticker symbol HD (next to the GET QUOTES button) -- press the Enter key
3. Select Historical Prices (from the list on the left side of the page)
4. Enter Feb 1, 2013 into both the Start Date: and End Date: -- press the Enter key
5. The price listed under Close is Home Depot's market price as of that date

2012 Year-End Closing Market Price of 1 Common Share: $67.30

$xx.xx

(PE Ratio) 2012 2011

Price-Earnings Ratio

Year-End Closing Market $xx.xx

Price of 1 Common Share $67.30
22.21 times 18.02
Basic Earnings Per Share $3.03 xx.xx
$xx.xx

Dividend Yield %
$xx.xx
Cash Dividends per share $1.16
1.72 % 2.32 %
Year-End Closing Market $67.30 xx.xx%
Price of 1 Common Share $xx.xx
Home Depot -- Fiscal 2012 Pg. 13

Analytical Observations

You will now utilize the information developed in Pages 2 to 12 to answer various analytical questions.

1. Vertical Analysis of the Income Statement (Pg. 2)

1> Which fiscal year had the highest Operating Income in terms of total dollars?
[ "x" only one answer ] x 2012 2011 2010

2> Which fiscal year had the highest Total Operating Expenses as a % of Net Sales?
[ "x" only one answer ] 2012 2011 x 2010

3> Based on Gross Profit as a % of Net Sales, rank the fiscal years 2012, 2011, and 2010 in terms
of which year had the highest.
Place a "1" in the box of the highest year, a "2" in the box of the second highest year, etc.
2012 2011 2010
1 2 3

4> Which fiscal year had the highest Net Earnings as a % of Net Sales?
[ "x" only one answer ] x 2012 2011 2010

2. Horizontal Analysis of the Income Statement (Pg. 3)

1> Rank the following items in terms of which had the largest % increase from Fiscal 2010 to
Fiscal 2011. Place a "1" in the box of the largest, a "2" in the box of the second largest, etc.

Net Sales Cost of Sales Gross Profit Operating Income

3 4 2 1

2> Rank the following items in terms of which had the largest % increase from Fiscal 2011 to
Fiscal 2012. Place a "1" in the box of the largest, a "2" in the box of the second largest, etc.

Net Sales Cost of Sales Gross Profit Operating Income

3 4 2 1

3> True or False? In terms of % Change, Basic Earnings Per Share grew more than Net Earnings
from Fiscal 2010 to Fiscal 2011.
[ "x" only one answer ] x True False

4> True or False? In terms of % Change, from Fiscal 2011 to Fiscal 2012
Total Operating Expenses increased more than Net Sales.
[ "x" only one answer ] True x False

5> True or False? In terms of % Change, Cost of Sales had a smaller increase than
Net Sales from Fiscal 2011 to Fiscal 2012.
[ "x" only one answer ] x True False
Home Depot -- Fiscal 2012 Pg. 14

Analytical Observations

3. Vertical Analysis of the Balance Sheet (Pg.4)

1> For fiscal year 2012, rank the following assets in terms of which was the largest as a % of
Total Assets. Place a "1" in the box of the largest, a "2" in the box of the second largest, etc.
Cash and Cash Equivalents Receivables, net Merchandise Inventories Net Property and Equipment
3 4 2 1

2> For fiscal year 2012, rank the following items in terms of which was the largest as a
% of Total Liabilities and Stockholders' Equity. Place a "1" in the box of the largest,
a "2" in the box of the second largest, etc.
Long-Term Debt, excluding
Accounts Payable current installments Paid-in Capital Retained Earnings
4 2 3 1

4. Horizontal Analysis of the Balance Sheet (Pg. 5)

1> Rank the following items in terms of which had the largest % increase from Fiscal 2011 to
Fiscal 2012. Place a "1" in the box of the largest, a "2" in the box of the second largest, etc.
Cash and
Cash Equivalents Total Assets Accounts Payable Retained Earnings
1 4 3 2

2> Rank the following items in terms of which had the largest Dollar increase from Fiscal 2011 to
Fiscal 2012. Place a "1" in the box of the largest, a "2" in the box of the second largest, etc.
Cash and
Cash Equivalents Total Assets Accounts Payable Retained Earnings
4 2 3 1

5. DuPont Analysis -- Return on Assets Ratio (Pg. 6)

1> Which of the following increased from Fiscal 2011 to Fiscal 2012? ["x" each item that increased]

x Profitability x Efficiency x Leverage

2> Which fiscal year has the highest Return on Assets %?

[ "x" only one answer ] x 2012 2011

3> Which fiscal year has the highest Return on Equity%?

[ "x" only one answer ] x 2012 2011

6. Profitability Indicators (Pg. 7)

1> Which fiscal year, 2012 or 2011, had higher profitability based on all three Profitability Indicators?

[ "x" only one answer ] x 2012 2011

Home Depot -- Fiscal 2012 Pg. 15

Analytical Observations

7. Efficiency Indicators (Pg.8)

1> Based on both of the Accounts Receivable Efficiency Indicators, in which fiscal year, 2012 or 2011,
did Home Depot more efficiently manage the Accounts Receivable asset?
[ "x" only one answer ] 2012 x 2011

2> Based on both of the Inventory Efficiency Indicators, in which fiscal year, 2012 or 2011,
did Home Depot have an item in inventory for the shortest amount of time?
[ "x" only one answer ] x 2012 2011

3> Based on the Number of Days' Purchases in Accounts Payable, in which fiscal year, 2012 or 2011,
did Home Depot hold on to its cash longer before paying the cash to vendors?
[ "x" only one answer ] x 2012 2011

4> Which fiscal year, 2012 or 2011, had the better Cash-to-Cash Cycle?

[ "x" only one answer ] x 2012 2011

5> In which fiscal year, 2012 or 2011, did Home Depot have the better Fixed Asset Turnover Ratio?

[ "x" only one answer ] x 2012 2011

8. Leverage Indicators (at year-end) -- Interest Coverage (Pg. 9)

1> Based on the Debt %, who had the greatest claim to Home Depot's assets in Fiscal 2011?

[ "x" only one answer ] x Creditors Shareholders

2> True or False? In Fiscal 2012 more than half of Home Depot's Total Assets were financed with debt?

[ "x" only one answer ] x True False

3> Based on the Times Interest Earned Ratio, were the creditors' interest payments more secure in
Fiscal 2012 or Fiscal 2011?
[ "x" only one answer ] x 2012 2011

9. Liquidity Indicators (Pg. 10)

1> Based on Working Capital and the Current Ratio did Liquidity increase or decrease from
Fiscal 2011 to Fiscal 2012?
[ "x" only one answer ] Liquidity Increased x Liquidity Decreased
Home Depot -- Fiscal 2012 Pg. 16

Analytical Observations

10. Statement of Cash Flows Indicators (Pg. 11)

1> True or False? By looking at the Cash Flow to Capital Expenditure Ratio it can be seen that Home Depot
was able to internally fund the purchases of Fixed Assets in Fiscal 2012 and in Fiscal 2011.

[ "x" only one answer ] x True False

2> In which fiscal year, 2012 or 2011, did Home Depot have more Free Cash Flow?

[ "x" only one answer ] x 2012 2011

11. Equity Investor Indicators (Pg. 12)

1> True or False? Based on the Dividend Payout % it can be seen that Home Depot paid out a larger percent
of Net Income, in the form of Cash Dividends, in Fiscal 2012 than in Fiscal 2011.

[ "x" only one answer ] True x False

2> Based on the Price-Earnings Ratio, in which fiscal year, 2012 or 2011, did investors place a
higher value on Home Depot's earnings?

[ "x" only one answer ] x 2012 2011

3> Based on the Dividend Yield %, in which fiscal year, 2012 or 2011, did an investor in Home Depot's Common
Stock earn a higher return from the cash dividends she received on her Home Depot Common Stock?

[ "x" only one answer ] 2012 x 2011

 Student's Name: Meng Vang
ARP Id Code: 21575848 Home Depot - 2012
Class Time: 0
Instructor: 0
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** Pg. 2 ** ** Pg. 8 (continued) **
Net Earnings Number of Days' Purch in A/P
Basic Earnings per Share Cash-to-Cash Days
** Pg. 3 ** Fixed Asset Turnover
Net Sales $ Change ** Pg. 9 **
Net Sales % Change Debt %
Cost of Sales $ Change Debt-to-Equity Ratio
Cost of Sales % Change Times Interest Earned Ratio
Gross Profit $ Change ** Pg. 10 **
Gross Profit % Change Working Capital
Total Operating Exp $ Change Current Ratio
Total Operating Exp % Change Quick Ratio
Operating Income $ Change ** Pg. 11 **
Operating Income % Change Cash Flow to Net Income Ratio
Provision for Taxes $ Change Cash Flow to Cap. Expend. Ratio
Provision for Taxes % Change Free Cash Flow
Net Earnings $ Change ** Pg. 12 **
Net Earnings % Change Dividend Payout %
Basic EPS $ Change Market Price of 1 Common Share
Basic EPS % Change Price-Earnings Ratio
** Pg. 4 ** Dividend Yield %
Total Assets ** Pg. 13 **
Total Liabilities and Equity 1-1
** Pg. 5 ** 1-2
Cash and Cash Equiv. $ Change 1-3
Cash and Cash Equiv. % Change 1-4
Merch Inventories $ Change 2-1
Merch Inventories % Change 2-2
Total Assets $ Change 2-3
Total Assets % Change 2-4
Accounts Payable $ Change 2-5
Accounts Payable % Change ** Pg. 14 **
Total Curr. Liabilities $ Change 3-1
Total Curr. Liabilities % Change 3-2
Long-Term Debt $ Change 4-1
Long-Term Debt % Change 4-2
Total Liabilities $ Change 5-1
Total Liabilities % Change 5-2
Retained Earnings $ Change 5-3
Retained Earnings % Change 6-1
Total Equity $ Change ** Pg. 15 **
Total Equity % Change 7-1
** Pg. 6 ** 7-2
Net Profit Margin % 7-3
Total Assets Turnover Ratio 7-4
Assets-to-Equity Ratio 7-5
Return on Equity % 8-1
Return on Assets % 8-2
** Pg. 7 ** 8-3
Gross Profit Margin % 9-1
Operating Profit Margin % ** Pg. 16 **
Net Profit Margin % 10-1
** Pg. 8 ** 10-2
Accounts Receivable Turnover 11-1
Number of Days' Sales in Rec. 11-2
Inventory Turnover 11-3
Number of Days' Sales in Inv.
Accounts Payable Turnover