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Performance Measurement Calculations

The items below represent the ratios to be calculated for the past 3 years for HOME DEPOT in EXCEL. There needs to be a calculation for each year on each ratio. Formula needs to be included cannot just be a number in the cell.

Asset Utilization Measurements

? Breakeven point
? Goodwill to Asset Ratio
? Interest Expense to Debt Ratio
? Investment Turnover
? Days of Working Capital
? Sales Per Person
? Sales to Equity Ratio
? Sales to fixed Assets Ratio

Operating Performance Measurements

? Gross Profit Percentage
? Net Income Percentage
? Profit Per Person
? Cash Flow Return on Assets
? Cash to Current Liabilities Ratio
? Expense Coverage Days

Liquidity Measurements

? Accounts Payable Turnover
? Current Liabilities Ratio
? Current Ratio
? Inventory to Sales Ratio
? Inventory Turnover Ratio
? Quick Ratio

Capital Structure and Solvency Measurements

? Debt to Equity Ratio
? Times Interest Earned Ratio

Return on Inventory Measurements

? Earnings Per Share
? Price Earnings Ratio

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Solution Preview

Hello Student,

My approach to helping you with this assignment will be, first, to give you a brief overview of each set of measurements and how the ratios under each are calculated. Then, I will proceed to create an excel file which will include Home Depot's Financial Statements (note that data will be included for 2009 and 2008, and you will be required to fill in the data for 2007) and a financial analysis of 2009 ...

Solution Summary

This solution provides an overview of the various types of performance measurements - to include, asset utilization measurements, operating performance measurements, liquidity measurements, capital structure and solvency measurements and return on invesment measurements. The use of each of these measurements and the various ratios that fall under each and how they are calculated are given. A financial analysis of Home Depot Inc. for the years 2008 and 2009 is also provided in an excel file for reference.

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