Home Depot report PDF

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Summary

Home depots Accounting report for the year 2018
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Home Depot Sec 10-K Report ACCT 221 6387

Edwin Perez

/26/18

Principles of Accounting II

Home Depot Sec 10-K Report About Bernie Marcus and Arthur Blank had a dream to open Home depot from a coffee shop in the year 1978. The had a vision of a superstore where there were a variety of merchandise at great prices and staff who knew everything there is to know about what ever the customer was looking for. Each employee will be skilled enough to help and answer the questions any of the customers had about fixing or building around the house. Marcus and Blank wanted to make sure every customer knew how to handle power equipment to handle all the every day know how of life at home. Home depot started with only two stores in Atlanta and have over 2,200 stores world wide which is truly amazing.[ CITATION UNK18 \l 1033 ]

Introduction

Home Depot has faced a couple changes from the last years activities. Some numbers went up and some numbers went down. The differences between 2016 and 2017, accounts receivables, Inventories, and Property, plant and equipment will be discussed in the next couple paragraphs. The information for this report were taken from the notes and the financial statement of Home Depot’s Sec 10-K. These notes and breakdown of the notes will help us get a better understanding of the activities of Home Depot from this past year.

Inventories

Merchandise Inventories are stated at the lower of cost (first-in, first-out) or market, with approximately 70% valued under the retail inventory method and the remainder under a cost method. Retailers like us, with many different types of merchandise at low unit cost and a large number of transactions, frequently use the retail inventory method. Under the retail inventory method, Merchandise Inventories are stated at cost, which is determined by applying a cost-toretail ratio to the ending retail value of inventories. As our inventory retail value is adjusted regularly to reflect market conditions, our inventory valued using the retail method approximates the lower of cost or market. We evaluate our inventory valued using a cost method at the end of each quarter to ensure that it is carried at the lower of cost or market. The valuation allowance for Merchandise Inventories valued under a cost method was not material to our Consolidated Financial Statements as of the end of fiscal 2016 or 2015.

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Home Depot Sec 10-K Report Earnings Data

Net Sales increased 6.9% to $94.6 billion for the fiscal year ended January 29, 2017 ("fiscal 2016") from $88.5 billion for the fiscal year ended January 31, 2016 ("fiscal 2015"). Our total comparable store sales increased 5.6% in fiscal 2016, driven by a 2.8% increase in our comparable store customer transactions and a 2.7% increase in our comparable store average ticket. Comparable store sales for our U.S. stores increased 6.2% in fiscal 2016. For fiscal 2016, we reported Net Earnings of $8.0 billion and Diluted Earnings per Share of $6.45 compared to Net Earnings of $7.0 billion and Diluted Earnings per Share of $5.46 for fiscal 2015. The results for fiscal 2016 included $37 million of pretax expenses related to the Data Breach that we discovered in the third quarter of fiscal 2014 compared to $128 million of pretax net expenses for fiscal 2015. These charges resulted in decreases of $0.02 and $0.06 to Diluted Earnings per Share for fiscal 2016 and 2015, respectively. Since the Data Breach occurred, we have recorded $198 million of pretax net expenses related to the Data Breach. The Data Breach is discussed further in Note 13 to our Consolidated Financial Statements.

Conclusion

Home Depot’s accounts have shifted slight higher than last years and have I have showed you some of the reasons. Although, Home Depot’s numbers may go up or down they are still the best store in the world for power tools, paint, and house hold items to fix it yourself. By far, their sales will continue to grow which will show year after year that Home Depot is going to continue to stand higher than their competition.

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Home Depot Sec 10-K Report

Reference:

UNKNOWN. (2018). Home Depot . Retrieved from Homedepot.com: https://corporate.homedepot.com/about/history

Sec 10K: https://www.sec.gov/Archives/edgar/data/354950/000035495017000005/hd01292017x10xk.htm#s9CBE125C7BDC5385B7A2EA092151856C

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