Financial Analysis is the procedure of analyzing 2022

Financial Analysis

FINANCE 1
Introduction
Financial Analysis is the procedure of analyzing, summarizing and evaluating the
financial position of the company. In this report, the discussion is made on the financial analysis
by evaluating the annual report of the company. In this report, the financial performances of two
companies have been evaluated in order to compare them. Home Depot has been taken into
consideration to analyze the financial performance with the Brighton Floor Store.
Ratio
Home Depot
Brighto
n
Ratio 2015 2015
Amount in
Millions
Gross Profit Margin Gross Profit 28389
Net Sales 83176
34.13% 31.80%
Return on Equity
Net income after preference
dividends 6345
Average common stock holder's
equity 40232
15.77% 19.20%

FINANCE 2
Return on sales Net profit 6345
Net sales 83176
7.63% 6.60%
Return on Assets Net income 6345
Total assets 39946
15.88% 19.90%
Debt to equity ratio Total Debt 2819
Total Equity 40232
0.07 0.54
Inventory Turnover ratio Cost of goods sold 54,222
Average inventory 11068
4.90 4.8
Asset Turnover Ratio Net sales 83176
Average Total Asset 40232
2.07 1.89
From the above analysis, it has been analyzed that the financial position of Home Depot
is strong as compare to the Brighton Store. As per the evaluation of the company, it is observed
that the company has more capability to generate the revenue as it amount of net sales is high as
compare to Brighton Floor Store. Home Depot has less liability as compare to the Brighton Floor