Calculate the following ratios for Lowes AND Home Depot FOR ALL THREE YEARS:

Debt/Leverage: -Times Interest Earned

-Debt to Equity

-Total Liabilities / Tangible Net Worth (in the case of Lowes why is it the same as Debt to Equity?)

Profitability: -Gross Margin

-Operating Margin

-Net Margin

-Total Asset Turnover

-Return on Total Assets

-Sales to Fixed Assets (Use PPE)

-Return on Equity

3) If youre a banker and are owed money by Lowes, how would you feel about your position as a creditor? What ratios are you looking at to draw your conclusion?

4) At the annual shareholders meeting, an upset shareholder is claiming that Lowes flat net income is due to its trying to grow too fast, ie, open up too many new stores. Do you agree or disagree? Why? What ratio(s) would you use to support your position?

5) Analyze Home Depots Financial Statements and Ratios. Write a 2 paragraph

conclusion of your analysis. Look at big number changes. Draw logical conclusions.

One paragraph should be dedicated to the Balance Sheet, and one to the income statement.

Period Ending		Feb 1, 2015	Feb 2, 2014	Feb 3, 2013
Assets
Current Assets
	Cash And Cash Equivalents	1,723,000	1,929,000	2,494,000
	Short Term Investments	-	-	-
	Net Receivables	1,484,000	1,398,000	1,395,000
	Inventory	11,079,000	11,057,000	10,710,000
	Other Current Assets	1,016,000	895,000	773,000
Total Current Assets		15,302,000	15,279,000	15,372,000
Long Term Investments		-	-	-
Property Plant and Equipment		22,720,000	23,348,000	24,069,000
Goodwill		1,353,000	1,289,000	1,170,000
Intangible Assets		-	-	-
Accumulated Amortization		-	-	-
Other Assets		571,000	602,000	473,000
Deferred Long Term Asset Charges		-	-	-
Total Assets		39,946,000	40,518,000	41,084,000
Liabilities
Current Liabilities
	Accounts Payable	9,473,000	9,379,000	8,871,000
	Short/Current Long Term Debt	328,000	33,000	1,321,000
	Other Current Liabilities	1,468,000	1,337,000	1,270,000
Total Current Liabilities		11,269,000	10,749,000	11,462,000
Long Term Debt		16,869,000	14,691,000	9,475,000
Other Liabilities		1,844,000	2,042,000	2,051,000
Deferred Long Term Liability Charges		642,000	514,000	319,000
Minority Interest		-	-	-
Negative Goodwill		-	-	-
Total Liabilities		30,624,000	27,996,000	23,307,000
Stockholders' Equity
Misc Stocks Options Warrants		-	-	-
Redeemable Preferred Stock		-	-	-
Preferred Stock		-	-	-
Common Stock		88,000	88,000	88,000
Retained Earnings		26,995,000	23,180,000	20,038,000
Treasury Stock		(26,194,000)	(19,194,000)	(10,694,000)
Capital Surplus		8,885,000	8,402,000	7,948,000
Other Stockholder Equity		(452,000)	46,000	397,000
Total Stockholder Equity		9,322,000	12,522,000	17,777,000
Net Tangible Assets		7,969,000	11,233,000	16,607,000

Period Ending		Feb 1, 2015	Feb 2, 2014	Feb 3, 2013
Total Revenue		83,176,000	78,812,000	74,754,000
Cost of Revenue		54,222,000	51,422,000	48,912,000
Gross Profit		28,954,000	27,390,000	25,842,000
	Operating Expenses
	Research Development	-	-	-
	Selling General and Administrative	16,834,000	16,597,000	16,508,000
	Non Recurring	-	-	-
	Others	1,651,000	1,627,000	1,568,000
	Total Operating Expenses	-	-	-
Operating Income or Loss		10,469,000	9,166,000	7,766,000
	Income from Continuing Operations
	Total Other Income/Expenses Net	337,000	12,000	87,000
	Earnings Before Interest And Taxes	10,806,000	9,178,000	7,853,000
	Interest Expense	830,000	711,000	632,000
	Income Before Tax	9,976,000	8,467,000	7,221,000
	Income Tax Expense	3,631,000	3,082,000	2,686,000
	Minority Interest	-	-	-
	Net Income From Continuing Ops	6,345,000	5,385,000	4,535,000
	Non-recurring Events
	Discontinued Operations	-	-	-
	Extraordinary Items	-	-	-
	Effect Of Accounting Changes	-	-	-
	Other Items	-	-	-
Net Income		6,345,000	5,385,000	4,535,000
Preferred Stock And Other Adjustments		-	-	-
Net Income Applicable To Common Shares		6,345,000	5,385,000	4,535,000

Period EndingJan 30, 2015Jan 31, 2014Feb 1, 2013AssetsCurrent AssetsCash And Cash Equivalents466,000 391,000 541,000 Short Term Investments125,000 185,000 125,000 Net Receivables230,000 252,000 217,000 Inventory8,911,000 9,127,000 8,600,000 Other Current Assets348,000 341,000 301,000 Total Current Assets10,080,000 10,296,000 9,784,000 Long Term Investments354,000 279,000 271,000 Property Plant and Equipment20,034,000 20,834,000 21,477,000 Goodwill- - - Intangible Assets- - - Accumulated Amortization- - - Other Assets1,359,000 1,323,000 1,134,000 Deferred Long Term Asset Charges- - - Total Assets31,827,000 32,732,000 32,666,000 LiabilitiesCurrent LiabilitiesAccounts Payable5,897,000 5,793,000 5,327,000 Short/Current Long Term Debt552,000 435,000 47,000 Other Current Liabilities2,899,000 2,648,000 2,334,000 Total Current Liabilities9,348,000 8,876,000 7,708,000 Long Term Debt10,815,000 10,086,000 9,030,000 Other Liabilities869,000 896,000 901,000 Deferred Long Term Liability Charges827,000 1,021,000 1,170,000 Minority Interest- - - Negative Goodwill- - - Total Liabilities21,859,000 20,879,000 18,809,000 Stockholders' EquityMisc Stocks Options Warrants- - - Redeemable Preferred Stock- - - Preferred Stock- - - Common Stock480,000 515,000 555,000 Retained Earnings9,591,000 11,355,000 13,224,000 Treasury Stock- - - Capital Surplus- - 26,000 Other Stockholder Equity(103,000)(17,000)52,000 Total Stockholder Equity9,968,000 11,853,000 13,857,000 Net Tangible Assets9,968,000 11,853,000 13,857,000

Period Ending		Jan 30, 2015	Jan 31, 2014	Feb 1, 2013
Total Revenue		56,223,000	53,417,000	50,521,000
Cost of Revenue		36,665,000	34,941,000	33,194,000
Gross Profit		19,558,000	18,476,000	17,327,000
	Operating Expenses
	Research Development	-	-	-
	Selling General and Administrative	13,281,000	12,865,000	12,244,000
	Non Recurring	-	-	-
	Others	1,485,000	1,462,000	1,523,000
	Total Operating Expenses	-	-	-
Operating Income or Loss		4,792,000	4,149,000	3,560,000
	Income from Continuing Operations
	Total Other Income/Expenses Net	-	-	-
	Earnings Before Interest And Taxes	4,276,000	3,673,000	3,137,000
	Interest Expense	-	-	-
	Income Before Tax	4,276,000	3,673,000	3,137,000
	Income Tax Expense	1,578,000	1,387,000	1,178,000
	Minority Interest	-	-	-
	Net Income From Continuing Ops	2,698,000	2,286,000	1,959,000
	Non-recurring Events
	Discontinued Operations	-	-	-
	Extraordinary Items	-	-	-
	Effect Of Accounting Changes	-	-	-
	Other Items	-	-	-
Net Income		2,698,000	2,286,000	1,959,000
Preferred Stock And Other Adjustments		-	-	-
Net Income Applicable To Common Shares		2,698,000	2,286,000	1,959,000