Home Depot vs. Lowes
Finance Research Project: Seminar 6
3/30/2014
1
Lowe’s Home Improvement Warehouse: Ratio’s
Liquidity
Current Ratio
Current
Liabilities
February
2013
February
2012
February
2011
Total Current
Assets
9,784,000
10,072,000
9,967,000
Total Current
Liabilities
7,708,000
7,891,000
7,119,000
Total Current
____Assets___
Total Current
Liabilities
1.26
1.27
1.40
February
2013
February
2012
February
2011
9,784,000
–8,600,000
1,184,000/7,708,
000
=0.153
10,072,000
–8,355,000
1,717,000/7,891,0
00
=0.217
9,967,000
–8,321,000
1,646,000/7,119,
000
= 0.023
Asset Management
Total Asset Turnover
Information
from Balance
Sheet and
Income
statement
February
2013
February
2012
February
2011
Sales (Revenue)
50,521,000
50,208,000
48,815,000
Total Assets
32,666,000
33,559,000
33,699,000
___Sales_____
Total Assets
1.54
1.49
1.44
2
Fixed Assets Turn Over
February
2013
February
2012
February
2011
Sales
50,521,000
50,208,000
48,815,000
NFA
21477,000
21,970,000
22,089,000
_____Sales____
Net Fixed
Assets (NFA)
2.35
2.28
2.20
Days Sales Outstanding
February
2013
February
2012
February
2011
Receivables
217,000
183,000
193,000
Annual Sales/ 365
50,521,000/365
50,208,000/365
48,815,000/365
__Receivables_____
Annual Sales/365
138,413.69
137,556.16
133,739.73
Inventory Turnover
February
2013
February
2012
February
2011
COGS
33,194,000
32,858,000
31,663,000
Inventory
1,938,000
1,137,000
1,372,000
COGS______
Inventories
17.12
28.89
23.07
Debt Management
Debt–to–Assets-Ratio
February
2013
February
2012
February
2011
Total Debt
47,000+2,334,000
592,000+2,334,000
36,000+2,065,000
Total
Assets
32,666,000
35,559,000
33,699,000
Total Debt
Total
Assets
.072
.082
.062
3
Times Interest Earned
February
2013
February
2012
February
2011
Not enough information available to complete the calculations for
Times Interest Earned for Lowe’s Home Improvement. Interest
Expense is unavailable.
Profitability
Profit Margin On Sales
February
2013
February
2012
February
2011
Net Income
Available to
1,959,000
1,839,000
2,010,000