Topic

Financial Analysis of Home Depot

Instructions

Write a financial analysis paper that focuses specifically on Home Depot.

Answer Preview

In order to understand the Debt-to- Equity Ratio (D/E) of Home Depot, there must be an analysis of the total liabilities of the company and the Shareholder equity, which can be accessed from the financial statements. In this case, the balance sheets and income statements play a good role in determining both of the above. Stocks Analysis (2019) analyzed the ratios of Home Depot from different periods and found out those different ratios have been improving and others deteriorating over the years based on the liabilities and the assets of the firm. The debt to equity ratio in this case, seems to have been at high risk in 2017 and 2018 but eventually improved in 2019, which shows that the company might be able to meet its long-term obligations. In the current times, the results also suggest that the company is not on a higher risk as it was in the past years because the debt to equity ratio is stable in the current year.

Word Count: 1000