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Annual Report Analysis On Home Depot

1307 words - 6 pages

Annual Report Analysis
On
Home Depot, Inc.

DeVry University
Intermediate Accounting

Introduction

Home Depot, Inc., founded in 1978 by Bernie Marcus and Arthur Blank, decided to team up with investment banker Ken Langone and merchandising guru Pat Farah ultimately became the visionaries for the one-stop-shop do-it-yourself store which today has become a very lucrative business bring the vision to fruition. The Home Depot is the world’s largest home improvement retailer based upon reported $4.5billion in net sales for the fiscal year 2012. Home Depot has more than 2,200 locations throughout the United States and now has expanded across the globe with stores located in ...view middle of the document...

Home Depot has also established an audit committee of the Board of Directors which consist of independent directors, internal auditors and management representatives that meets with independent public accounting firm (KPMG, LLP) five times a year to discuss auditing and financial reporting matters.

According to KPMG, LLP statement located in the financial statement and supplementary data, Page 29
provides their opinion on Home Depot financial statement , as their audit has been conducted in accordance with the Standard of the Public Company Accounting Oversight Board, the consolidated balance sheets, related consolidated statements of earrings, comprehensive income stockholders’ equity and cash flows for each fiscal year for the last three year periods ending in February 2013 in their report date March 28, 2013 expressed and unqualified opinion on those consolidated financial statements.

2 Subsequent events, errors and irregularities, illegal acts or related party transactions that have material effect on the financial statements for Home Depot
Located in Item 3 of Home Depot’s Consolidate Financial Statement, Home Depot is involved in several amounts of legal proceedings which may have some adverse effect on sales and cost, none of which has been seen at the close of the fiscal year for 2012. While the outcome of these proceedings and other contingencies which cannot be predicted, these out comes may adversely affect operations or increase in their cost. According to a statement given, “additionally defending against these lawsuits and proceedings may involve significant expenses and diversion of management’s attention and resources from other matters.”
* Board of Directors had approved purchases up to $40 billion of which $2.4 billion remained available at the end of fiscal 2012. Item 2 – page 16 of Home Depot Consolidated Statement
* During the fourth quarter of fiscal 2012 Home Depot credited 24,961 deferred stock units to participant accounts under the Home Depot Future Builder Restoration Plan

3 Trend in Assets and Liabilities
Net sales increase 6.2% 74.8 billion for the fiscal year 2012 from$70.4 billion for fiscal 2011
Total asset increase from $40, 551 billion from 2012 to 41,084 billion fiscal 2013 thus far, but of course liabilities have also increase from $22,620 in 2012 to $23,307 for fiscal 2013.

4 & 5 Three largest assets and liabilities for Home Depot recent year presented
* Property, plant and equipment as of February of 2013 are the three largest assets totaling $24,069,000.00
* Accounts Payable, Long term debt along with other liabilities totaling $19,516.000.00 which is more than 55% of the total amount of liabilities.

6. Home Depot’s Stock and shares in the most recent present years.
Home Depot has common stock listed on the New York Stock Exchange trading under the symbol “HD”.
* During the fiscal year 2012 – first quarter ended with shares at $52.03 as a high and $44.39...

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