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Financial analysis 3 public: Home Depot, Apple, Discover

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Select three public companies, find their annual reports in the investors relations section of their website.
Select: Home Depot, Apple & Discover

How much cash is available for the company to pay its current debts?
Is the company in trouble or in good shape? (current ratio as evidence)
Is each company increasing or decreasing its investment in its operations? [Hint: look at "Cash Flow from Investing Activities on the Statement of Cash Flows. Then note the change in Non-Current Assets on the Balance Sheet from one year to the next.]
How well is each company doing in its operations? [Hint: Look at the three year trend in Net Income on the Income Statement and at Cash Flow from Operating Activities on the Statement of Cash Flows.]

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Solution Preview

See excel attached for computations and analysis on performance.

Finally, based on your answers to the above questions, give each of the presidents of your companies a letter grade (A, B, etc) for his/her performance over the most recent year reported in the financial statements. Explain your grade.

Home Depot: A
The firm is very liquid with plenty of cash or near cash on hand. They are investing in the firm a little less than disposals and depreciation (and so a negative change in non-current assets). ...

Solution Summary

Your tutorial is 417 words and shows working capital, return on sales, return on assets and the requested financial data for Home Depot, Apple and Discover Card. A paragraph explains the grade for each firm. This is NOT an extensive or comprehensive analysis but a "big picture" view with selected key indicators requested in the posting.