Home Depot Risk Analysis Paper

The Interesting Keywords in Home Depot’s Financial Reports The income statement of the Home Depot was a very complex financial report. Unlike the income statements from the chapter, it is relatively detailed with very similar terms mentioned. If it had not been for the reading we have done thus far in the course, I would have had a very difficult time understanding Home Depot’s financial report. I thought it would be best to start by going through the table of contents rather than searching through the entire document. Quickly, I was able to recognize the majority of the terms. Risk factors are the second section of the report that really caught my eye. I thought it was appropriate to have “Risk factors” at the beginning of the table of contents. I know as an investor, I would like to know the risk factors prior to moving forward in my initial investment. The income statement begins with the net sales of the company followed by the cost of goods sold (The Home Depot, Inc., 2014). These two are the fundamental things in the income statement. Net sales represent total sales less any sales return while the cost of goods sold represents the cost incurred for the materials that is sold. The next important term in the income statement is gross profit, which is the profit before any taxes and other expenses. When

In conjunction with Home Depot’s financial report, I learned from reviewing the balance sheets for Time Warner and the Walt Disney in this week’s discussion board, how the companies that keep their administrative and other expenses at a minimum will usually see an increase in sales and profits (Keown, Martin, & Petty, 2008). As a consumer and a individual that plans on investing for his family in the near future, this chapter was a great way to become comfortable and familiar with comprehending financial statements and cash