Assess Home Depot's financial performance from 1986 to 1999. How did the company achieve such a...

 

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Assess Home Depot's financial performance from 1986 to 1999. How did the company achieve such a spectacular performance? What explains the decline in performance in 2000? The following data might be helpful in your analysis. Sales Growth and Profitability Ratios Average for fiscal Fiscal year Fiscal year years 1986 to 1999 1999 2000 Sales Growth Rate 27.2% 19% Retum on Equity (ROE) 25.2% 26.59% 20.9% NOPAT/Sales 4.7% 6.0% 5.69% Sales Net Assets 3.53 4.34 3.75 19.6%6 22.696 19.8% Operating ROA Spread 22.4% 18.4% 22.9% Net Financial Leverage 0.37 0.17 0.05 Financial Leverage Gain 5.7% 4.0% 1.19% Assess Home Depot's financial performance from 1986 to 1999. How did the company achieve such a spectacular performance? What explains the decline in performance in 2000? The following data might be helpful in your analysis. Sales Growth and Profitability Ratios Average for fiscal Fiscal year Fiscal year years 1986 to 1999 1999 2000 Sales Growth Rate 27.2% 19% Retum on Equity (ROE) 25.2% 26.59% 20.9% NOPAT/Sales 4.7% 6.0% 5.69% Sales Net Assets 3.53 4.34 3.75 19.6%6 22.696 19.8% Operating ROA Spread 22.4% 18.4% 22.9% Net Financial Leverage 0.37 0.17 0.05 Financial Leverage Gain 5.7% 4.0% 1.19%

Answer rating: 100% (QA)

Introduction The Home Depot Inc listed under New York Stock Exchange with the ticker symbol HD is an ... View the full answer