Home Depot Financial Statements

The Home Depot has a good reputation within the United States of America. They have locations in all 50 states and are known for do-it-yourself customers and professional business. Home Depot has a reputation of dedicated customer service and supplies for all of a person's do-it-yourself needs. The company has gone through some hard times because of the economic recessions (The Home Depot, 2009).

The Home Depot employees will continue to analyze the company's financial position of company comparing the prior results to the current results regarding the disclosures and issues stated in the financial statements of the company.

The management's must come to an agreement in the financial analysis of the company'sfinaancal position. The company takes notice of the executive summary as they take action on several strategy items in the 2008. This resulted regarding pretax charge of $951 million dollars. The management made comments on the letter to the stockholders regarding the net sales and how they were significantly lower in the previous years (The Home Depot, 2009).

The financial final numbers as they were stated in the previous report revealed that the net earnings were down by 48.5% compared to the prior year. The management recognized that the removal of 50 stores from the upcoming store opening would help lower the future expenses.

The earning per share for 2008 were $1.34 million, 2007 were $2.37 million, and 2006 were $2.79 million (The Home Depot, 2009).

The earnings per share for fiscal years 2008, 2007, and 2006 were $1.34 and $2.37 and $2.79, respectively. The dropped earnings per share are credited to increase expenses and decrease in net sales. After studying, the numerous management notes and concluding the company repurchase of a large amount of shares in 2007 and 2008. The declining amount of shares sold was more disturbing (The Home Depot, 2009).

Home Depot expressed their opinion of lower cash of lower revenue because of the plans to reduced square footage in the future development The Company wants to increase review to create more cashflow. Home Depot would like to provide stronger returns for the company and invest the money into existing location while concentrating on continuing to improve customer service (The Home Depot, 2009).

The current plans of the alterations to the existing new store will increase the expenses, and encounter more expenses in the future from this decision. The company is under a commitment for thee obligation and by defaulting on the agreement, Home Depot would face several contingencies and a possible class-action lawsuit. Home Depot not able to anticipate the he estimates of the potential losses that an ongoing lawsuit case could cause. However, they can anticipate d get a close to accurate amount or the loss of materials. (The Home Depot, 2009).

By evaluating the company's