Working Capital Strategies Paper and Power Point Presentation Essay

Working Capital Strategies Paper and Power Point Presentation - Essay Example this the core concentration of the company is now on improving its operations and to attain a better position in the industry by deploying suitable cash management strategies. This particular report will focus on the different asset-liability management strategies that the company has adapted so far. The report analyses the results of the year 2006, 2007 and 2008. It also makes an assessment about the future cash management strategies that the company can adapt. Â   The end of financial year 2006 showed a steady increase in the Net sales for the company. The increase was more than US $ 9 billion, when compared to the figures of the financial year 2005. (Annual report Home Depot, 2006).Side by side the company’s net asset also increased to US $ 52.3 billion from US $ 44.4 billion in this particular year. (Annual report Home Depot, 2006). This increase in current assets is mostly due to the acquisition of Hughes Supply in the supply segment. Also apart from this the company made another major acquisition in China, in its retail segments. Thus the supply chains were made stronger as well as there was a steady strategic decision, which increased the number of outlets in the developing market of China. Due to all these facts it can be concluded that though the net sales of the company increased by 11.4% but the Net earnings remained same to US $5.8 billion, when compared to the previous year. (Annual report Home Depot, 2006). In fact the net earning as a percentage of net sales showed a decreasing trend. The cause for this decline can be twofold. Firstly it may be due to the increase in fixed asset of the company that year (which incurred a huge amount of cost), and it may also be due to the lowering of demand of the household appliances. The later fact is also reflected in the company’s balance sheet where it shows that weighted average weekly sales per operating store as well as the retail comparable store, as a percentage of total sales have decreased to some