Executive Summary The Home Depot, Inc. Business Description The Home Depot, Inc. is the world’s largest home improvement and construction products and services retailer. It operates in all 50 states with over 2,200 locations. The company serves three primary customer groups: home owners, contractors, and professional customers. The Home Depot stores, which are warehouse-style stores, sell a wide range of building materials, home improvement, and lawn and garden products. The stores also have a number of services and programs to help customers. Financial Position For the 2013 fiscal year, The Home Depot, Inc. reported $78.8 billion in revenue, up 4% year over year. Net-income grew from $4.5B to $5.4B due to reducing the percentage of sales dedicated to selling, general, and administrative costs from 22.1% to 21.1%. The decrease in selling, general, and administrative costs as a percent of sales shows expense controls and expense leverage. …show more content…
reported $15.3 billion in current assets down from $15.4 for fiscal year 2012; total assets decreased by $500 million. However, current liabilities decreased to $10.7 billion compared with $11.5 billion the year prior. Yet, total liabilities increased to $30.0 billion from $23.3 billion due to an increase of long-term debt from $9.5 billion to $14.2 billion. Cash flow from operating activities increased to $7.6 billion from $7.0 billion due to an increase in net-income while controlling expenses. Cash used in investing activities increased to $1.5 billion from $1.4 billion because capital expenditures increased by $77 million. Cash used in financing activities was reported as $6.7 billion, an increase of $1.7 billion from year prior. This increase was primary due to share repurchases and dividends paid to shareholders.