Analyzing Stockholders' Equity: Strategies for Generating Cash

School: Grand Canyon University - Course: ACC-502 ACC502 - Subject: Accounting

Analyzing Stockholders' Equity Colangelo College of Business, Grand Canyon University ACC-502: Accounting Practices Amy Drake Professor Kari Day December 07th, 2022

2 Analyzing Stockholders' Equity DATE:December 07th, 2022 TO:Mr. Richard V. McPhail, CFO CC:Mr. Edward P. Decker, CEO FROM:XXX-XXXXX SUBJECT:Strategies for Generating Cash Flow for Home Depot Inc. MEMORANDUM The two primary types of stocks are common and preferred stock. The difference between them is that common stockholders can apply their vote at shareholder meetings as well as receive dividends, whereas preferred stockholders can not apply their vote at meetings, but they have a priority to receive payments from dividends that common stock owners do not (even in the event of bankruptcy and liquidation of assets). With common stock at $.05 par value per share, Home Depot Inc. reported net sales of $38.9 billion in the third quarter of FY 2022 where the net earnings were $4.3 billion, or $4.24 per diluted share (Sec.gov, 2022). For the first nine months of fiscal 2022, net sales were $121.6 billion and net earnings were $13.7 billion, or $13.37 per diluted share., they are at 1,019,186,022 of common stocks as of November 15, 2022. In 2021, sales grew from 14.4% to $151.2 billion, compared to FY 2020. The FY of 2021 equivalent sales growth was 11.4 % for the entire company and 10.7% in the United States. Our FY of 2021 net earnings were $16.4 billion, and earnings per diluted share increased 30.1% to $15.53 (Home Depot Inc, 2021).