Assess the companies liquidity and solvency. Are the companies likely to meet their debts as they come due? Consider ratios such as the current ratio, the quick ratio, the debt-to-assets ratio and the liabilities-to-equity ratio. Also consider interest costs and the times interest earned ratio. Is there any off-balance-sheet financing that will constrain future cash flow? You should explicitly consider operating leases at both companies. Assume that the appropriate discount rate for capitalizing the operating leases is 7.0% for both companies. Further, assume that the lease payments due after 2018 will be paid evenly over 20 years for The Home Depot and evenly over 6 years for Lowes.