Colin Barry

Home Depot (BAV, Tuesday, Week 3)


Decompose ROE into:

Think about how we would expect these three factors to change based on firm's strategy.

Accounting analysis: a few things to watch out for/think about adjusting
-- One-time items
-- Tax credits
-- Receivables/payables
-- Acquisitions, especially at the end of a period => change firm's B/S; don't impact I/S
-- Goodwill and other intangibles