Nobody downloaded yet

2008 Annual Report of The Home Depot Inc - Research Paper Example

Comments (0) Cite this document
From the paper "2008 Annual Report of The Home Depot Inc" it is clear that statement of cash flows tells about how the company generated and used cash in the business. The cash could come and be used in operating activities, financing activities and investing activities…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.8% of users find it useful

Extract of sample "2008 Annual Report of The Home Depot Inc"

Download file to see previous pages To illustrate, HDI’ profitability in the last two years from 2008 to 2009 is evident with its average return on equity (ROE) at 19%. The said rate can show a clear advantage over competitors regarding its past performance for the past two years is clear if compared with the industry average of 7.64% as per Reuters (2011). See Appendix A for more details.
To expect a 19% return on equity (ROE) sounds encouraging when other businesses were producing lower profitability given the situation in the economy in 2008 which appeared to have been affected by the financial crisis of 2007 to 2009. Such a level of high profitability would seem to show that the company had been above the economic recession (Samuelson, P. and Nordhaus, 1992) that the financial statements do confirm what happened in 2008. Viewed differently, an investor is just like putting his or $100 in investment with HDI while expecting $19 in return every year which should be high enough. See Appendix A for more details. Calculated by dividing net profit to the total stockholders’ equity or shareholders’ funds, ROE should tell any right thinking investor on whether it should invest, continue investing or find another (Johnson, et al, 2003).
Return on assets (ROA) measures how the management makes use of assets is another way to evaluate HDI in terms of management’s profitability. The same can also be used to check efficiency in the utilization of resources. HDI exhibited a two-year ROA average of 8% which may be again compared against the industry average of 3.9%, thus indicating better efficiency. See Appendix A.
The balance sheet tells about the financial condition of the company as of given date. Generally, the financial condition should tell about the liquidity and solvency of the company. Liquidity is the capacity to meet maturing obligations in the short term while solvency is for the long-term (Johnson, et al, 2003). ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Not Found (#404) - StudentShare”, n.d.)
Not Found (#404) - StudentShare. Retrieved from
(Not Found (#404) - StudentShare)
Not Found (#404) - StudentShare.
“Not Found (#404) - StudentShare”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF 2008 Annual Report of The Home Depot Inc

Home depot

...? The recent economic recession, has done a lot of damage to the sales prospects of both Lowe’s and Home Depot stores. The decreasing amount of sales, has indeed forced both the stores to find ways by which, they would very well be able to increase the customer satisfaction. Both the stores play a very vital role of providing service to their customers, in the home improvement market. Since the recession has hindered their plans to expand the current existing stores, they feel that the best way to increase the sales is by the improvement of customer loyalty, which currently does not exist for both the stores. This is the reason for the creation of so much competition between both these...
1 Pages(250 words)Essay

Home Depot Inc

...operations from 1978, as of now the company has been in the business for more than 34 years. The company has its physical appearance in the form of retail outlets as well as having a building location in Atlanta, Georgia. The legal state of the Home Depot is of corporation and the company operates as public limited company. Apparently from the company’s last year’s annual report of 2010, there is no litigation that has been found. So it seems as if the company has been tackling its issues quite smoothly without any serious legal proceedings. As part of the future outlook of the company, the executives of the company are pretty much hopeful with the growth due to healing...
3 Pages(750 words)Coursework

Strategic Analysis of Home Depot Inc

...? Strategic Analysis Strategic Analysis Strategic analysis in business refers to the unique plan a business is using to advantageously position itself in the industry and its operating environment. It is an invaluable tool in planning for a business as it researches the factors that affect the business from within and also externally (Floor, 2006). This paper explores the business strategic plan used by Home Depot Inc, a private listed American company that deals with construction and home improvement equipments. The company has over two thousand stores in the US alone, and others operating in other countries such as Canada. It was founded in 1978 and has grown to become...
6 Pages(1500 words)Case Study

Home Depot

...? 3.3 – Task Environment 3.3 Threat Of New Entrants Threat of new entrants in the industry is low. Home Depot has an advantage over new entrants in this industry as it has maintained its brand name, a wide range of products and has established customer’s loyalty in the industry (Harrison and John). One of the major barriers in the home furnishing and decorating industry is the high capital requirement. The initial cost required to start a business is too high for the new entrants to afford (Harrison and John). Therefore, it is essential for the company in the industry to operate with contracts to establish credit with a financial institution in the long run. Home Depot operates with contracts, establishes credits with the bank... , which...
9 Pages(2250 words)Essay

Home Depot and Lowes

...Analytical Report on Home Depot and Lowes Introduction: Home depot and Lowes are one of the leading America's retail home improvement establishments.Both the organizations serve as chain of home improvements. "Home Improvement Centers cater for home renovations and alterations, by supplying a broad range of home repair and maintenance goods including hardware, tools, equipment, plumbing and electrical goods, lumber and structural material. Products are both sourced from domestic manufacturers and wholesalers, as well as international locations, and then retailed to the...
9 Pages(2250 words)Case Study

Home depot

...Home Depot Organization Culture Culture Change Introduction Home Depot was in trouble and they didn't even know it. Not unusual with bigbox stores that have stretched to increase the numbers of stores they have. However, in Home Depot's case, their cultural structure was such that there was no cohesion in what everyone was doing and then along came competition in the form of Lowe's. Lowe's was not only customer friendly but also appealed to women as well as men. It was easy to find what one was looking for and the customer service was quite good. This paper will discuss how Home Depot approached the...
3 Pages(750 words)Essay

Home Depot

...HOMEDEPOT There are various outcomes that have been expressed in the current research investigation, and all of them have merit for Home Depot’s future operations. One must think of the worst-case scenario, in terms of the external business environment impacting Home Depot negatively. In other words, it may be vital for the company to prepare for the worst. One must also think of whether or not capital can be controlled by the company, and to what purposes the capital is to be used. As mentioned earlier in the report, the greater the capital is, the greater the ability is to pay labor and get credit; the less the capital, and the less able an...
2 Pages(500 words)Essay

Lowe's vs Home Depot

...Lowe’s vs. Home Depot: Location, Location, Location. Discussion Questions. Question The two stores, Lowe’s and Home Depot sell very similar products. They try to keep their prices very competitive because they are both aiming at a mass market of ordinary people, who need all kinds of household hardware, and professionals in the fields of home construction, home maintenance and home improvement. There is evidence that customers may prefer one or the other, but they do use both stores, and so their loyalty is not fixed either way. This proves that there is overlap in the appeal of the two stores, and makes them obvious...
2 Pages(500 words)Essay

Home Depot company - Case Analysis and report

...Home Depot Company - Case Analysis and report Every company or organization has its own board of directors (BOD) and top level managers who are concerned with decision making. There are certain criteria or qualifications that must be met by individuals to allow them to be part of the BOD or even the top managers. The BOD of Home Depot comprises of 10 directors making up both internal and external directors. The ratio of the internal and external directors is 1:9. This is in accordance with the codes of conduct governance which requires at least one members of the BOD to be part of the company. The internal director is the CEO of the company who is the...
9 Pages(2250 words)Case Study

The Home Depot, Inc. Annual Report in Fundamentals of Financial Accounting

... Depot. Income statement does not separate out depreciation and amortization costs hence its individual impact cannot be ascertained. Similarly, selling cost separate from administrative expenses is not available, which is essential for the decision making on improving sales efforts. References The Home Depot Inc. (2008). 2008 Annual Report. NW Atlanta. [Available at] Heakal, R.(2010). What is a Cash Flow Statement? Retrieved June 18, 2014 from The Home Depot Inc Q. What does the Consoli d ments of Earnings—the income ment—tell you about the company? Why is this ment important? What business decisions...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic 2008 Annual Report of The Home Depot Inc for FREE!

Contact Us