1. Download the 10K/10Q Reports and Press Releases for Home Depot from their corporate website (https://ir.homedepot.com/financial-reports/sec-filings). You will need to download these reports for the following 10 quarters: 4 quarters in 2020, 4 quarters in 2021, and first 2 quarters of 2022.
2. Compute the Free Cash Flow (CFFA) using the two methods introduced in Chapter 2; (i) CFFA from Operations and (ii) the CFFA from Stakeholders for each quarter, using the information reported in the 10K/10Q Reports for each of the 10 quarters.
For your CFFA computations, the values for each of the key components and subcomponents for each of the 10 quarters need to be computed as well. For example, for CFFA from Operations, you will need to compute Operating Cash Flow (OCF), Net Capital Spending (NCS) and Changes in Net Working Capital (dNWC) for each of the 10 quarters. Then, for each of those components, the values for the corresponding subcomponents need to be computed as well. For example, for OCF, you will need to compute EBIT, Depreciation and Taxes for each of the 10 quarters. Same goes for everything else.
All of these items need to be computed in a single Excel Worksheet, which should be named “CFFAs”.
3. Compute the following 5 financial ratios -as in Chapter3- for each of the 10 quarters: Profit Margin (PM), Return on Assets (ROA), Return on Equity (ROE), Debt-Equity Ratio and Total Asset Turnover Ratio (TATR). For each of the ratio, the numerator and denominator items need to be computed separately. For each of the financial ratios, use the ratio values only to do bar charts.
All of these ratios and bar charts need to be on a single Excel Worksheet, which should be named “Ratios”.
4. Do a brief analysis of the industry to which Home Depot belongs. Touch upon economics, marketing and other relevant topics pertaining to the industry.
5. Do a brief write-up of the company focusing on Management issues.
