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Home Depot Executive Summary

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Company Information
Founded in 1978, The Home Depot is the world's largest home improvement retailer based on net sales for the fiscal year ended on January 29, 2017. The Home Depot sells a large variety of building materials, home improvement products and gardening products, as well as many services with 2,278 stores in North America. The Home Depot strives to excel in service, to customers, associates, communities, and shareholders. Their business model is to put customers and associates first, and let the rest follow. During the year, The Home Depot continues to drive growth and productivity in regards to their three-legged stool framework. These include: 1) What they are passionate about 2) What they are the best in the world at: Productivity Authority 3) What drives their economic engine: Productivity and efficiency driven by effective capital allocation. The Home Depot expects sales to increase approximately 6.3 percent for the year 2017. The company also expects fiscal 2017 earnings per share to grow approximately 14 percent. For fiscal 2020, …show more content…

From analyzing the gross profit margin percentage, The Home Depot regressed by .03% from Fiscal 2015 (34.19%) to Fiscal 2016 (34.16%). However, this regression has little impact on the company's profitability. The company was still able to maintain an adequate selling price above its cost of goods sold. The Home Depot's operating income percentage, which determines the company's ability to earn operating income from sales, shows that the company had an increase of .89%, increasing from 13.30% in 2015 to 14.19% in 2016. While reviewing the net profit margin percentage, which is the company's ability to earn net income from its sales, an increase from 7.92% in 2015 to 8.41% in 2016 occurred. The Home Depot earned a higher percentage of net income from sales in 2016, .49% more than

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