Running head: ANALYZING PRO FORMA STATEMENTS

Analyzing Pro Forma Statements
Bridget Harvey and Keva Paul
FIN/571
February 09, 2015
Ms. Wendy Thomas

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ANALYZING PRO FORMA STATEMENTS

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Introduction
The Home Depot is the world’s largest home improvement retailer. The tagline for The Home
Depot is “More savings more doing that’s the power of The Home Depot.” The catchy and recognizable tagline can be heard on nearly every TV and radio station in the United States. The
Home Depot realizes that in order to maintain its title as the world’s largest home improvement retailer the company will need more than its catchy tagline. Therefore, The Home Depot has decided to extend the time in which small household appliances are available to its customers.
Analysis of Pro Forma Data
The Home Depot does not usually sell small house appliances like coffee pots, toasters, mini convection ovens, blenders, and irons through the year. The mentioned small appliances were only sold during the Christmas season. The Home Depot has decided to extend the time frame in which small appliances could be purchased. In 2014, The Home Depot sold the small appliances from the Christmas season until March 2015. The extension of the availability of the small appliances increased sales revenue by %. The increase in revenue prompted The Home Depot to employ the idea for the 2015 Christmas season until March 2016. There was an increase in revenue of % for 2016. The same model was used for the Christmas season of 2016 to March
2017, and again there was an increase in annual sales, %. The Home Depot decided that since sales revenues were increasing each year with the extension of having the small appliance available to its customers that the store would sell the small appliance year round. So in 2017
The Depot made the decision to sell small appliance all year. There was an increase in sales for
2017 of %. There was an increase in sales for 2018 of %. Sales revenue increased % in 2019, which proved to be the most successful year.

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Conclusion
The decision to extend the availability of small household appliances proved to be a very successful plan for The Home Depot. Annual revenue continued to increase each year that the small appliances were sold for a longer time frame to the customers. The decision to sell the small appliances throughout the year proved to be one of the best decisions that The Home Depot could have made. The company continues to run the catchy tagline “More savings more doing that’s the power of The Home Depot. The company also employed a new catchy tagline after the success of its 2014 plan. Now the new tagline “Let’s Do This” can also be heard on TV and radio stations through the United States. It is also proudly displayed on the infamous orange work buckets that only The Home Depot sells.