University of Phoenix Material
Financial Statement Review- Home Depot
The publicly traded US Corporation I chose was Home Depot, utilizing the most current fiscal year which ended February 2, 2014. “The world’s largest home improvement retailer most current On February 25, 2014, released its most current Fourth Quarter & Fiscal 2013 Results announcing a 21% increase in quarterly dividends and guidance for the 2014 Fiscal Year” (Home Depot Financial Reports, 2014).
What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to stakeholders?
Based on the Home Depot financial statements, net income for the current fiscal year ...view middle of the document...
The ending balance in the stakeholders’ equity represents an outlook on a corporation’s success, an increases in a stakeholder’s equity and retained earnings propose a potential profit. Stakeholders would be potentially interested in this information since it would strengthen arguments for an increase in dividend payments.
What is the total value of assets? Why would this information be important to stakeholders?
The total value of assets, (as of February 2, 2014), for Home Depot is $40,518 million. This information would be important to stakeholders because assets of the company, offer a cushion from disastrous debt, should the market face a down turn in the economy or a significant blow to the company.
What is the total cash flow from operations? What does this represent and what financial statement user would be most interested in this information?
Based on the most recent financial statements from Home Depot financial statements, the total cash flow from operation for the (most) current fiscal year ending February 2, 2014, was $7,628 million.I believe this represents how the company is expanding, declining, or breaking even. It allows for project managers to identify weaknesses in the overall company, and to re-allocate assets from a stronger area to a weaker area to maintain positive momentum.
I believe this information would be important to the company owners and upper level managers for internal management and then to potential outside investors.
Home Depot Financial Reports. (2014). Retrieved on January 22, 2015 from,
Kimmel, P., Weygandt, J., & Kieso, D. (2011). Accounting: Tools for business decision making. (4th ed.).