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 investors?

Based on the Home Depot financial statements, net income for the current fiscal year ended February 2, 2014 is $5,385 million. The net income increased 18.7% from the previous fiscal year. I believe that this data would be important to stakeholders because it indicates success of the company, and potentially the health of their shares of a company. Stakeholders usually look at historical trends of net profits to assess a degree of risk associated with the company.

What is the ending balance in stockholders’ equity? Why would a labor union potentially be interested in this information?

Based on the most recent fiscal financial statement, the ending balance in stockholders’ equity is $12,522 million, (utilizing the data released February 2, 2014). 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. Labor Union 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 a potential creditor?

The total value of assets, (as of February 2, 2014), for Home Depot is $40,518 million. This information would be important to potential creditors 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 operation?

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.

What financial statement user would find this information most important?