Research Paper on:
HOME DEPOT: AN ANALYSIS

Unformatted Sample Text from the Research Paper:
paper, well examine the companys internal strengths and weaknesses and determine how well it is (or is not) addressing four sets of objectives and measures put forth in a balanced  scorecard analysis. Though the student asked about a discussion of Home Depots Mayor Business Unit, a search through the companys investor relations department and on the Internet didnt yield any  information about this particular unit. A glance at the past three years of The Home Depots cash flow statement shows that net income  has fallen off drastically from the year before. In February 2009, the net income was $2.2 billion (The Home Depot Inc., 2009). The net income from February 2008 was $4.3  billion and the year before that, in February 2007, it was $5.7 billion (The Home Depot Inc., 2009). Cash flow is also down (The Home Depot Inc., 2009). Though the  economy can be blamed, to an extent, capital investments and an increase of debt havent helped matters much. Its probably not surprising, therefore,  that "sub-optimal capital structure" is one of the companys weaknesses (Home Depot, 2008). Home Depots weak capital structure has been seen in its declining interest coverage ratio (Home Depot, 2008).  In 2006, the coverage ratio was 65.5, which dropped to 22.7 in 2007 (Home Depot, 2008). In 2008, the interest coverage ratio was 104 (Home Depot, 2008).  The operating profits in 2008 also were unable to meet the rising interest burden, which resulted in a net loss of close to 4.4 million  in 2008 (a decrease of 23.7% from the year before) (Home Depot, 2008). The problem with the interest coverage ration is its eating into the companys profitability - and could