6-1

Financial Strategy Homework

50 points
This is a group assignment. You will hand in one completed worksheet
for your entire group. Points are all or nothing. You will be required to
redo your homework until all numbers are 100% correct. Once your
assignment is graded and returned you have until the next class period
to fix and resubmit the assignment. After the first submission, each
subsequent submission will result in a 10 point deduction. Failure to
resubmit an assignment that is not 100% correct will result in a zero.

Instructions:
You will need to submit the following hand out for the three most recent years for both
your retailer.
1. Use this file as your template.
2. Make and save your changes to this file.
3. Upload your file to the assignment in Blackboard.
 The Strategic Profit Model:
Sales
Profit Management Fiscal Year 2018
Retailer: Home Depot 108,203
Gross Margin
-
COGS
37,160
The numbers are in millions 71,043
- Op Expenses
Net Profit
before tax 19,513
Net Profit
14,556 Total +
Expenses Interest Expense

Net Profit
11,121 - 1,051
Margin 22,604
Taxes -
 Interest Income
10.28% 3435
Sales 93
108,203 +
Other
6-2
2,133
 The Strategic Profit Model:
Asset Management Fiscal Year 2018
Retailer: ___Home Depot_______ Inventory

13,925

Sales +
Accounts
Asset 108,203 Current Receivable
Turnover Assets
1,936
2.46
 18,529
Total Assets
+
44,003 + Cash

Fixed Assets
1,778
25,474 +
Other Current
Assets

890
 The Strategic Profit Model:
Return on Assets Fiscal Year 2018
Retailer:____Home Depot______

Net profit

11,121
Return on
Assets

25.27%


Total
Assets

44,003
 6-5

Key Ratios for Fiscal Year 2018

Retailer:____Home Depot______
Calculate the Key 2018
Ratios:
Net Profit Margin (%) 10.28%

Asset Turnover 2.46

Gross Margin % 34.34%

Operating Expense % 18.03%

Inventory Turnover 5.10

 The Strategic Profit Model: Sales
Profit Management Fiscal Year 2017
Retailer:____Home Depot______ 100,904
Gross Margin -
COGS
34,356
66,548
- Op Expenses

Net Profit 17,864

before tax

Net Profit
13,698 Total
+
Interest Expense
Expenses
Net Profit
8630 - 1,057
Margin 20,658
Taxes -
Interest Income

8.55%
Sales
5068 74
+
100,904 Other
6-6
1,811
 The Strategic Profit Model:
Asset Management Fiscal Year 2017
Retailer: ___Home Depot_______ Inventory

12,748

Sales +
Accounts
Asset 100,904 Current Receivable
Turnover Assets
1,952
2.27
 18,933
Total Assets
+
44,529 + Cash

Fixed Assets
3,595
25,596 +
Other Current
Assets

638
 The Strategic Profit Model:
Return on Assets Fiscal Year 2017
Retailer:______Home Depot____

Net profit

8630
Return on
Assets

19.38%


Total
Assets

44,529
 6-9

Key Ratios for Fiscal Year 2017

Retailer:__Home Depot________
Calculate the Key 2017
Ratios:
Net Profit Margin (%) 8.55%

Asset Turnover 2.27

Gross Margin % 34.05%

Operating Expense % 17.70%

Inventory Turnover 5.22

 The Strategic Profit Model: Sales
Profit Management Fiscal Year 2016
Retailer:____Home Depot______ 94,595
Gross Margin -
COGS
32,313
62,282
- Op Expenses

Net Profit 17,132

before tax

Net Profit
12,491 Total
+
Interest Expense
Expenses
Net Profit
7957 - 972
Margin 19,822
Taxes -
Interest Income

8.41%
Sales
4,534 36
+
94,595 Other
6-10
1,754
 The Strategic Profit Model:
Asset Management Fiscal Year 2016
Retailer: _____Home Depot_____ Inventory

12,549

Sales +
Accounts
Asset 94,595 Current Receivable
Turnover Assets
2029
2.20
 17,724
Total Assets
+
42,966 + Cash

Fixed Assets
2538
25,242 +
Other Current
Assets

608
 The Strategic Profit Model:
Return on Assets Fiscal Year 2016
Retailer:______Home Depot____

Net profit

7,957
Return on
Assets

18.52%


Total
Assets

42,966
 6-13

Key Ratios for Fiscal Year 2016

Retailer:___Home Depot_______
Calculate the Key 2017
Ratios:
Net Profit Margin (%) 8.41%

Asset Turnover 2.20

Gross Margin % 34.16%

Operating Expense % 18.11%

Inventory Turnover 4.96