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    Home Depot Ratio Analysis

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    Based on the attached document, perform at least two ratio analyzes for:
    (1) Liquidity
    (2) Solvency
    (3) Profitability

    Please see attachment for The Home Depot, Inc. and Subsidiaries Consolidated Balance Sheets.

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    Solution Preview

    Ratio Analysis:
    (i) Liquidity ratio: it includes current ratio and quick ratio:
    Current ratio = Current assets / current liabilities

    Quick ratio = Current assets - inventories / current liabilities

    Current ratio:
    Current ratio for home depot_2014 = $15, 279 / $10,749 = 1.42
    Current ratio for Home depot_2013 = $15,372 / $11,462 = 1.34

    Here we can see that the current ratio for the company has increase for the year 2014 mainly because of decrease in current liabilities in the year 2014 as compared to the year ...

    Solution Summary

    This response is a detailed calculation of the ratio analysis of liquidity, solvency and profitability for The Home Depot Inc. and Subsidiaries Consolidated Balance Sheets.