VALUE LINE PUBLISHING, OCTOBER 2002 Financial Forecast for Home Depot

Fiscal year 2001 2002E 2003E 2004E 2005E 2006E
Growth in new stores 17.5% 15.0% 13.2% 9.0% 7.0% 5.5%
Sales growth for existing stores -0.4% 3.0% 4.0% 8.3% 8.3% 8.3%
Total sales growth 17.1% 18.0% 17.2% 17.3% 15.3% 13.8% Gross margin 31.6% 32.0% 32.3% 32.4% 32.5% 32.5%
Cash operating expenses/Sales 20.9% 21.0% 20.7% 20.8% 20.5% 20.5%
Depreciation/Sales 1.4% 1.4% 1.4% 1.4% 1.4% 1.4%
Income tax rate 38.6% 37.6% 37.5% 37.5% 37.5% 37.5% Cash & ST Inv/Sales 4.8% 5.0% 5.0% 5.1% 5.3% 5.3%
Receivable turnover 58.2 55.0 53.0 52.0 50.0 50.0
Inventory turnover 5.4 5.3 5.1 5.0 4.7 4.7
P&E Turnover 3.5 3.3 3.3 3.3 3.3 3.3
Payables/COGS 9.4% 9.4% 9.4% 9.4% 9.4% 9.4%
Other curr liab/Sales 4.4% 4.4% 4.4% 4.4% 4.4% 4.4%

Number of stores 1,333 1,533 1,735 1,891 2,024 2,135
Net sales 53,553 63,195 74,049 86,860 100,149 114,000
Cost of sales 36,642 42,972 50,131 58,717 67,601 76,950 Gross profit 16,911 20,222 23,918 28,143 32,549 37,050
Cash operating expenses 11,215 13,271 15,328 18,067 20,531 23,370
Depreciation & amortization 764 902 1,056 1,239 1,429 1,626 EBIT 4,932 6,050 7,533 8,837 10,589 12,054 NOPAT 3,028 3,775 4,708 5,523 6,618 7,534 Cash and ST investments 2,546 3,160 3,702 4,430 5,308 6,042
Accounts receivable 920 1,149 1,397 1,670 2,003 2,280
Merchandise inventory 6,725 8,170 9,868 11,743 14,383 16,372
Other current assets 170 170 170 170 170 170 Total current assets 10,361 12,648 15,138 18,014 21,864 24,864
Accounts payable 3,436 4,030 4,701 5,506 6,339 7,216
Accrued salaries and wages 717 717 717 717 717 717
Other current liabilities 2,348 2,765 3,240 3,800 4,382 4,988 Current liabilities 6,501 7,511 8,658