1. Compute return on equity (ROE), return on assets (ROA) and return on financial leverage (ROFL) for each company in fiscal year 2017. Assume a tax rate of 35% for these years.
2. Compute the gross profit margin (GPM) and operating expense-to-sales ratios for each company. How do these companies profitability measures compare?
3. Compare and evaluate these competitors performance in 2017.

HOME DEPOT, INC. LOWE'S COMPANIES Balance Sheets Balance Sheets ($ millions) 2017 2016 2017 2016 $ 3,595 $ 2,538 $ $ Assets Current assets: Cash and cash equivalents Short-term investments Receivables, net.. Merchandise inventories. Other current assets. 588 102 558 100 1,952 12,748 638 2,029 12,549 608 11,393 689 10,458 884 Total current assets Net property and equipment. Goodwill.. Long-term investments. Other assets. 18,933 22,075 2,275 17,724 21,914 2,093 12,772 19,721 1,307 408 1,083 12,000 19,949 1,082 366 1,011 $34,408 1,246 1,235 Total assets $44,529 $42,966 $35,291 $ 2,761 7,244 1,640 1,805 54 2,690 $ 1,252 7,000 1,484 1,669 25 2,703 $ 1,431 6,590 747 1,378 $ 1,305 6,651 790 1,253 1,950 Liabilities and shareholders' equity Current liabilities: Short-term debt and current maturities of long-term debt. Accounts payable. Accrued salaries and related expenses. Deferred revenue Income taxes payable. Other current liabilities Total current liabilities. Long-term debt, excluding current maturities Deferred income taxes Other long-term liabilities Total liabilities ... Total stockholders' equity . . Total liabilities and shareholders' equity. 12,096 15,564 1,975 11,974 14,394 16,194 24,267 440 2,174 43,075 1,454 14,133 22,349 296 1,855 1,758 38,633 4,333 29,418 5,873 1,606 27,974 6,434 $44,529 $42,966 $35,291 $34,408 HOME DEPOT, INC. Income Statements LOWE'S COMPANIES Income Statements 2017 2016 2017 2016 $100,904 66,548 $94,595 62,282 $68,619 45,210 $65,017 42,553 22,464 34,356 32,313 23,409 17,864 ($ millions) Net sales. Cost of sales. Gross profit.. Operating expenses: Selling, general and administrative. Depreciation and amortization Operating income. Interest and other income) expense: Interest and investment income Interest expense..... Loss on extinguishment of debt. Earnings before provision for income taxes. Provision for income taxes 17,132 1,754 13,427 15,376 1,447 1,811 15,129 1,489 14,681 6,586 5,846 (16) (74) 1,057 0 (36) 972 0 (12) 657 649 464 13,698 5,068 12,491 4,534 5,489 2,042 5,201 2,108 Net earnings ... $ 8,630 $ 7,957 $ 3,447 $ 3,093