The income statements for Home Depot, Inc. (HD), spanning the period 2014-2016 (just before the housing...
The income statements for Home Depot, Inc. (HD), spanning the period 2014-2016 (just before the housing crash, so these are representative years) are found here:
|
$ thousands |
2016 |
2015 |
2014 |
||||
|
Net operating income (EBIT) |
$11,774,000 |
$10,469,000 |
$9,166,000 |
||||
|
Interest expense |
(919,000) |
(830,000) |
(711,000) |
||||
|
Earnings before taxes |
$10,855,000 |
$9,639,000 |
$8,455,000 |
||||
|
Income taxes |
(4,012,000) |
(3,631,000) |
(3,082,000) |
||||
|
Net income |
$6,843,000 |
$6,008,000 |
$5,373,000 |
a. Calculate the times interest earned ratio for each of the years for which you have data.
b. What is your assessment of how the firm's ability to service its debt obligations has changed over this period?
Homework Answers
| Times Interest earned: | ||||||
| 2016 | 2015 | 2014 | ||||
| Net Operating income | 11774000 | 10469000 | 9166000 | |||
| Divide: Interest expenses | 919000 | 830000 | 711000 | |||
| Times interest earned | 12.81 | 12.61 | 12.89 | |||
| The Times interest earned is more or less the same in all the three years. | ||||||
| With 2014 has the highest capacity to pay interest with 12.89 times. | ||||||
| It has been reduced slightly in 2015 which again has risen to 12.81 in 2016 | ||||||
Add Answer to:
The income statements for Home Depot, Inc. (HD), spanning the
period 2014-2016 (just before the housing...
Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2016 for...
Refer to the financial statements of The Home Depot in Appendix
A. (Note: Fiscal 2016 for The Home Depot runs from February 1,
2016, to January 29, 2017. As with many retail companies, The Home
Depot labels the period “Fiscal 2016” even though it ends in the
2017 calendar year. The label “Fiscal 2016” is appropriate because
Fiscal 2016 includes 11 months from the 2016 calendar year. The
Home Depot explains its choice of fiscal period in Note 1 to...
Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2016 for...
Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017 Required: 1. What amount of Net Sales does the company report during the year ended January 29, 2017? $32,313 $62,282 $7,957 $94,595 2. Assuming that Cost of Sales is the company's term for Cost of Goods Sold, compute the company's gross profit percentage for fiscal 2016 and the year immediately prior to...
Balance sheets and income statements for the home depot inc. and lowe's companies inc . 1.Compute...
Balance sheets and income statements for the home depot inc. and
lowe's companies inc .
1.Compute return on equity, return on assets, and return on
financial leverage for each company in 2014
2. Disaggregate the ROA's computed into profit margin (PM) and
asset turnover (AT) components. Which of these factors drives ROA
for each company?
3. Compute the gross profit margin (GPM) and operating
expense-to-sales ratios for each company. How do these companies'
profitability measures compare?
4. Compute the accounts...
THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Fiscal Year Ended(1) amounts in millions,...
THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Fiscal Year Ended(1) amounts in millions, except per share data January 31, 2016 February 1, 2015 February 2, 2014 NET SALES $ 88,519 $ 83,176 $ 78,812 Cost of Sales 58,254 54,787 51,897 GROSS PROFIT 30,265 28,389 26,915 Operating Expenses: Selling, General and Administrative 16,801 16,280 16,122 Depreciation and Amortization 1,690 1,640 1,627 Total Operating Expenses 18,491 17,920 17,749 OPERATING INCOME 11,774 10,469 9,166 Interest and Other (Income) Expense: Interest...
The following are the consolidated statement of earnings and the balance sheet of Home Depot, Inc...
The following are the consolidated statement of earnings and the balance sheet of Home Depot, Inc and Subsidiaries. THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Fiscal Year Ended(1) amounts in millions, except per share data January 31, 2016 February 1, 2015 February 2, 2014 NET SALES $ 88,519 $ 83,176 $ 78,812 Cost of Sales 58,254 54,787 51,897 GROSS PROFIT 30,265 28,389 26,915 Operating Expenses: Selling, General and Administrative 16,801 16,280 16,122 Depreciation and Amortization 1,690 1,640...
use tax rate of 37.5 Barron Pizza, Inc. Abbreviated Income Statements for the Years Ending 2012-2014...
use tax rate of 37.5
Barron Pizza, Inc. Abbreviated Income Statements for the Years Ending 2012-2014 ($ in thousands, except earnings per share) Year Ending Year Ending Year Ending Account 2014 2013 2012 Revenue $ 917,399 $ 946,298 Cost of goods sold $ -669,337 $ -656,197 Gross profit 169,350 $ 315,034 Selling, general, and administrative expenses $ -70,567 - 192,966 Research and development -5,428 $ -7,127 $ -3,459 Depreciation $ -34,446 $ -35,654 Operating income 60,553 $ 81,472 Other income...
The Home Depot, Inc., financial statements appear in Appendix A at the end of this textbook. a. Identify where...
The Home Depot, Inc., financial statements appear in Appendix A at the end of this textbook. a. Identify where you can tell that the company uses straight-line depreciation. b. Which of the following statement is false? c. Using information from the consolidated financial statements, calculate the following for the year ended February 1, 2015: a) Net Income, b) Gross profit as a % of sales, c) Current ratio at February 1. 2015, d) Current ratio at the end of the...
The following are the consolidated statement of earnings and the balance sheet of Home Depot, Inc...
The following are the consolidated statement of earnings and the balance sheet of Home Depot, Inc and Subsidiaries. THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Fiscal Year Ended(1) amounts in millions, except per share data January 31, 2016 February 1, 2015 February 2, 2014 NET SALES $ 88,519 $ 83,176 $ 78,812 Cost of Sales 58,254 54,787 51,897 GROSS PROFIT 30,265 28,389 26,915 Operating Expenses: Selling, General and Administrative 16,801 16,280 16,122 Depreciation and Amortization 1,690 1,640...
The following are the consolidated statement of earnings and the balance sheet of Home Depot, Inc...
The following are the consolidated statement of earnings and the balance sheet of Home Depot, Inc and Subsidiaries. THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Fiscal Year Ended(1) amounts in millions, except per share data January 31, 2016 February 1, 2015 February 2, 2014 NET SALES $ 88,519 $ 83,176 $ 78,812 Cost of Sales 58,254 54,787 51,897 GROSS PROFIT 30,265 28,389 26,915 Operating Expenses: Selling, General and Administrative 16,801 16,280 16,122 Depreciation and Amortization 1,690 1,640...
Nordstrom, Inc. Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) 2016 2015 2014 Net...
Nordstrom, Inc. Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) 2016 2015 2014 Net Sales $14,095 $13,110 $12,166 Credit card revenues 342 396 374 Total revenues 14,437 13,506 12,540 Cost of sales and related buying and occupancy costs (9,168) (8,406) (7.737) Selling, general and administrative expenses (4,168) (3,777) (3,453) Earnings before interest and income taxes 1,101 1,323 1,350 Interest expense, net (125) (138) (161) Earnings before income taxes 976 1,185 1,189 Income tax expense (376) (465) (455) Net...
Refer to the financial statements of The Home Depot in Appendix
A. (Note: Fiscal 2016 for The Home Depot runs from February 1,
2016, to January 29, 2017. As with many retail companies, The Home
Depot labels the period “Fiscal 2016” even though it ends in the
2017 calendar year. The label “Fiscal 2016” is appropriate because
Fiscal 2016 includes 11 months from the 2016 calendar year. The
Home Depot explains its choice of fiscal period in Note 1 to...
Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017 Required: 1. What amount of Net Sales does the company report during the year ended January 29, 2017? $32,313 $62,282 $7,957 $94,595 2. Assuming that Cost of Sales is the company's term for Cost of Goods Sold, compute the company's gross profit percentage for fiscal 2016 and the year immediately prior to...
Balance sheets and income statements for the home depot inc. and
lowe's companies inc .
1.Compute return on equity, return on assets, and return on
financial leverage for each company in 2014
2. Disaggregate the ROA's computed into profit margin (PM) and
asset turnover (AT) components. Which of these factors drives ROA
for each company?
3. Compute the gross profit margin (GPM) and operating
expense-to-sales ratios for each company. How do these companies'
profitability measures compare?
4. Compute the accounts...
use tax rate of 37.5
Barron Pizza, Inc. Abbreviated Income Statements for the Years Ending 2012-2014 ($ in thousands, except earnings per share) Year Ending Year Ending Year Ending Account 2014 2013 2012 Revenue $ 917,399 $ 946,298 Cost of goods sold $ -669,337 $ -656,197 Gross profit 169,350 $ 315,034 Selling, general, and administrative expenses $ -70,567 - 192,966 Research and development -5,428 $ -7,127 $ -3,459 Depreciation $ -34,446 $ -35,654 Operating income 60,553 $ 81,472 Other income...
The Home Depot, Inc., financial statements appear in Appendix A at the end of this textbook. a. Identify where you can tell that the company uses straight-line depreciation. b. Which of the following statement is false? c. Using information from the consolidated financial statements, calculate the following for the year ended February 1, 2015: a) Net Income, b) Gross profit as a % of sales, c) Current ratio at February 1. 2015, d) Current ratio at the end of the...
Nordstrom, Inc. Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) 2016 2015 2014 Net Sales $14,095 $13,110 $12,166 Credit card revenues 342 396 374 Total revenues 14,437 13,506 12,540 Cost of sales and related buying and occupancy costs (9,168) (8,406) (7.737) Selling, general and administrative expenses (4,168) (3,777) (3,453) Earnings before interest and income taxes 1,101 1,323 1,350 Interest expense, net (125) (138) (161) Earnings before income taxes 976 1,185 1,189 Income tax expense (376) (465) (455) Net...
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