Refer to the financial statements of The Home Depot in Appendix A and Lowe's in Appendix B

Question:

Refer to the of The Home Depot in Appendix A and Lowe's in Appendix B at the end of this book, or download the annual reports from the Cases section of the text's Web site at www.mhhe.com/phillips4e.
Required:
1. Calculate the debt-to-assets ratio for Lowe's at January 28, 2011. Based on this calculation, was Lowe's financing more or less risky than The Home Depot's at the end of
January 2011?
2. Calculate the ratio for Lowe's for the year ended January 30, 2011. Lowe's total assets at the end of fiscal 2009 were $33,005 million. Based on this calculation, did Lowe's use its assets more or less efficiently than The Home Depot in 2010-2011?
3. Calculate the net profit margin ratio for Lowe's for the year ended January 28, 2009. Based on this calculation, did Lowe's generate more or less profit per dollar of sales than The Home Depot in 2010-2011?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.