1. Ratio analysis with detailed steps of the financial statements of Lowe's.
2. Interpretations of the ratio analysis.
170 Part Two Financial Analysis and Forecasting EXHIBIT 5 | Financial Statements for Lowe's ($ millions) Fiscal Year 1997 1998 1999 2000 2001 10,137 7,447 2.690 1,825 241 624 0 66 559 201 357 12,245 8,950 3,295 2,189 272 833 0 75 758 276 482 15,906 11,525 4,381 2,870 338 1,172 24 85 1,063 390 673 18,779 13,488 5,291 3,479 410 1,402 0 121 1,281 472 810 22,111 15,743 6,368 4,036 534 1,798 0 173 1,625 601 1,024 INCOME STATEMENT Sales Cost of sales Gross profit Cash operating expenses* Depreciation & amortization EBIT Nonrecurring expenses Net interest expense Income taxes Net earnings BALANCE SHEET Cash and ST investments Accounts receivable Merchandise inventory Other current assets Total current assets Net property and equipment Other assets Total assets Accounts payable Accrued salaries and wages Short-term borrowings Current maturities of long-term debt Other current liabilities Current liabilities Long-term debt Deferred income taxes Other long-term liabilities Minority interest Shareholders' equity Total liab. and owner's equity 211 118 1,715 65 2,110 3,005 104 5,219 243 144 2,105 94 2,586 3,637 122 6,345 569 148 2,812 164 3,693 5,177 469 161 3,285 243 4,157 7,035 166 11,358 853 166 3,611 291 4,920 8,653 162 13,736 142 9,012 1,714 166 250 42 738 2,911 969 83 98 12 286 1,449 1,046 124 0 0 2,601 5,219 1,133 113 92 99 328 1,765 1,283 160 0 0 3,136 6,345 1,567 164 92 60 503 2,386 1,727 200 4 0 4,695 9,012 1,715 221 100 59 922 3,017 3,734 305 6 0 6,674 13,736 2,698 251 3 0 5,495 11,358 *Includes operating-lease payments of $59 million in 1997, $89 million in 1998, $144 million in 1999, $162 million in 2000, and $188 million in 2001. 170 Part Two Financial Analysis and Forecasting EXHIBIT 5 | Financial Statements for Lowe's ($ millions) Fiscal Year 1997 1998 1999 2000 2001 10,137 7,447 2.690 1,825 241 624 0 66 559 201 357 12,245 8,950 3,295 2,189 272 833 0 75 758 276 482 15,906 11,525 4,381 2,870 338 1,172 24 85 1,063 390 673 18,779 13,488 5,291 3,479 410 1,402 0 121 1,281 472 810 22,111 15,743 6,368 4,036 534 1,798 0 173 1,625 601 1,024 INCOME STATEMENT Sales Cost of sales Gross profit Cash operating expenses* Depreciation & amortization EBIT Nonrecurring expenses Net interest expense Income taxes Net earnings BALANCE SHEET Cash and ST investments Accounts receivable Merchandise inventory Other current assets Total current assets Net property and equipment Other assets Total assets Accounts payable Accrued salaries and wages Short-term borrowings Current maturities of long-term debt Other current liabilities Current liabilities Long-term debt Deferred income taxes Other long-term liabilities Minority interest Shareholders' equity Total liab. and owner's equity 211 118 1,715 65 2,110 3,005 104 5,219 243 144 2,105 94 2,586 3,637 122 6,345 569 148 2,812 164 3,693 5,177 469 161 3,285 243 4,157 7,035 166 11,358 853 166 3,611 291 4,920 8,653 162 13,736 142 9,012 1,714 166 250 42 738 2,911 969 83 98 12 286 1,449 1,046 124 0 0 2,601 5,219 1,133 113 92 99 328 1,765 1,283 160 0 0 3,136 6,345 1,567 164 92 60 503 2,386 1,727 200 4 0 4,695 9,012 1,715 221 100 59 922 3,017 3,734 305 6 0 6,674 13,736 2,698 251 3 0 5,495 11,358 *Includes operating-lease payments of $59 million in 1997, $89 million in 1998, $144 million in 1999, $162 million in 2000, and $188 million in 2001
