Carefully read Lowe's annual report (or 10K) for the most recent year and answer the following questions:

Look at the Management Discussion and Analysis (MDA) on Financial Condition and Results of Operations presented in Lowe's annual reports. Summarize the information discussed in the MDA that you feel is interesting and has significant relevance.

What does the information below say about the company's operations?

Item 6 - Selected Financial Data 2019 20181 2017 20162,3 2015 $ 72,148 $ 71,309 $ 68.619 $ 65,017 $ 59.074 22.943 22.908 22.434 21,674 19.933 6,314 4.971 4,018 2.314 6,586 3.447 5.846 3,093 4,281 2,546 Selected Statement of Earnings Data (In millions, except per share data) Net sales Gross margin Operating income Net earnings Basic earnings per common share Diluted earnings per common share Dividends per share Selected Balance Sheet Data Total assets Long-term debt, excluding current maturities 5.49 2.84 4.09 3.48 2.73 5.49 2.84 4.09 3.47 2.73 $ 2.13 $ 1.85 $ 1.58 $ 1.33 $ 1.07 $ $ 34,508 $ $ $ 39,471 16.768 35,291 15,564 34,408 14,394 31,266 11.545 $ $ 14,391 $ $ $ Effective February 3, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and all related amendments, using the modified retrospective method. Therefore, results for reporting periods beginning after February 2, 2018 are presented under ASU 2014-09, while comparative prior period amounts have not been restated and continue to be presented under accounting standards in effect in those periods. 2 Fiscal 2016 contained 53 weeks, while all other years contained 52 weeks. 3 Fiscal 2016 includes the acquisition of RONA inc. Effective February 2, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), and all related amendments, using the optional transition approach to not restate comparative periods and recognized the cumulative impact of adoption in the opening balance of retained earnings. Therefore, results for reporting periods beginning after February 1, 2019 are presented under ASU 2016-02, while comparative prior period amounts have not been restated and continue to be presented under accounting standards in effect in those periods. 4 Basis Point Increase / (Decrease) in Percentage of Net Sales from Prior Year Percentage Increase / (Decrease) in Dollar Amounts from Prior Year 2019 2018 2019 vs. 2018 2019 vs. 2018 Net sales 100.00% 100.00% N/A 1.2 % 31.80 32.12 (32) 0.2 21.30 24.41 (311) (32) (11.7) (14.5) 1.75 2.07 Gross margin Expenses: Selling, general and administrative Depreciation and amortization Operating income Interest - net Pre-tax earnings Income tax provision Net earnings 8.75 5.64 311 57.1 0.96 0.88 8 10.6 7.79 4.76 303 65.7 1.86 1.52 34 24.3 5.93% 3.24% 269 85.0 % Basis Point Increase / (Decrease) in Percentage of Net Sales from Prior Year Percentage Increase / (Decrease) in Dollar Amounts from Prior Year 2018 2017 2018 vs. 2017 2018 vs. 2017 100.00% 100.00% N/A 3.9 % 32.12 32.69 (57) 2.1 24.41 21.04 337 20.6 2.07 2.05 2 Net sales Gross margin Expenses: Selling, general and administrative Depreciation and amortization Operating income Interest - net Loss on extinguishment of debt Pre-tax earnings Income tax provision Net earnings 5.64 9.60 (396) 0.88 0.92 0.68 5.2 (39.0) (1.3) (100.0) (38.2) (47.1) (32.9% 4.76 (68) (324) (146) (178) 8.00 1.52 2.98 3.24% 5.02% 2019 2018 2017 1 2.6% 2.4% 4.0% 953 921 941 $ 78.36 $ 75.79 $ 72.00 1.977 2,015 2,152 Other Metrics Comparable sales increase Total customer transactions (in millions) Average ticket 2 At end of year: Number of stores Sales floor square feet (in millions) Average store size selling square feet (in thousands) Return on average assets 4 Return on average shareholders' equity 5 Net earnings to average debt and equity 6 Return on invested capital 208 209 215 3 105 104 100 10.8% 6.4% 9.5% 153.4% 43.8% 59.2% 17.2% 9.0% 13.0% 19.9% 11.2% 16.0%