The Home Depot 2008 Annual Report Dear Shareholders: In 2008,


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HELP!! I don’t think the tutor answered did this assignment properly and I am way behind on my other assignments. Can someone please help me? Write a 1,050- to 1,750-word paper in which you address the following: Does management’s assessment of the financial condition agree with your assessment from the Financial Statements Paper Part I? Explain your response. Support your answer using trend analysis, vertical analysis, or ratio analysis. In the Annual Report, there are several concerns from management. Discuss these concerns, and identify other weaknesses not discussed by management. Then, recommend a course of action addressing these concerns. Advice: For this week’s paper the best place to start with the financial assessment is page 15 of the annual report. Contrast these to comments your comments posted in your financial assessment of Home Depot in your week 2 paper. For Management’s concerns a good place to start is page 5 the annual report. Don’t forget to try and determine some weaknesses that management has not discussed. Make recommendations for a course of action to address concerns. This is a big area where past students have lost points acc497_r7_hd_2008_annual_report.docx The Home Depot 2008 Annual Report Dear Shareholders: In 2008, our retail sales declined by 7.8 percent, with comp sales down 8.7 percent. Our adjusted earnings per share from continuing operations declined 22 percent. In ordinary times, these would be very disappointing results. But 2008 was not an ordinary year. Despite the difficult economic environment, we continued to improve our retail business, through investing in our associates and our stores, rebuilding our supply chain and improving customer service. We also made several strategic decisions to optimize our capital allocation, concentrating our efforts on our core business. In the first quarter, we closed 15 underperforming stores and reduced our pipeline of new stores by 50. In the third quarter, we renegotiated our private label credit card agreement, capping our cost of private label credit. In the fourth quarter, we announced our decision to exit EXPO and related businesses. These actions will make the Company stronger. On the financial side, we ended the year with a solid operating profit and $41 billion in assets. We generated cash from the business of approximately $5.5 billion, which allowed us to invest in the business where necessary and reduce our debt obligations while maintaining a healthy dividend. On the operational side, we implemented an “Aprons on the Floor” initiative, which deployed over $200 million in annualized savings onto the floor of the stores for customer service. Our customer service levels, as measured by our Voice of Customer surveys and other external sources, continue to improve. We launched our “New Lower Price” campaign in the fall and have been very pleased with the customer response to this program. More than ever, our customers expect great value and exciting products in our stores, and we are committed to providing for these expectations. We started the roll-out of our enhanced supply chain. At the end of January, we opened our fifth Rapid Deployment Center (RDC), and RDCs now serve approximately 500 of our U.S. stores. Our goal is to have approximately 20 RDCs in place by the end of 2010, serving all of our U.S. stores. We also rolled out new merchandising tools allowing our merchants to better plan and assort our products. These tools helped us drive better inventory productivity and provided better markdown control, particularly for our seasonal categories. On the international front, our stores in Mexico continued their strong performance, ending the year with double digit positive comps. We also took a major step in transforming our information technology application footprint by converting our Canadian business to a new enterprise resource planning platform. The rest of the business will benefit from the

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