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Posted on Jun 28, 2024

Conduct a Financial Analysis report on LOWE'S and HOME DEPOT: ** see Income Statement, Balance Sheet and Cash Flow for each company bellow and attached

Conduct a Financial Analysis report on LOWE'S and HOME DEPOT:

** see Income Statement, Balance Sheet and Cash Flow for each company bellow and attached **

1. Compute the following ratios for the last two years (2019 and 2018). Be sure to write what computation equation you used to find the ratio:

Current Ratio
Quick (Acid-Test) Ratio
Inventory Turnover
Days Sales' In Inventory
Accounts Receivable Turnover
Days' Sales in Receivables
Accounts Payable Turnover
Days Payable Outstanding
?Debt Ratio
Times-Interest-Earned Ratio
Gross Margin Percentage
Net Profit Margin
Rate of Return on Net Sales
Rate of Return on Total Assets
Rate of Return on Common Stockholders' Equity
Earnings Per Share
Price-Earnings Ratio
Dividend Yield
Book Value Per Share of Common Stock

2. Compose an analysis of the two organizations by evaluating them based on the following criteria:

Ability to pay current liabilities
Measuring turnover and their cash conversion cycle.
Ability to pay long-term debts (Liabilities)
Measuring profitability
Analyzing their stock as an investment.

LOWE's

Information from:

https://finance.yahoo.com/quote/LOW?p=LOW

Income Statement:

Breakdown 020 1/31/2019 1/31/2018 1/31/2017 Total Liabilities Net Minority Int... 0 45,881,000 43,075,000 38,633,000 v Capital Stock DO 89,000 89,000 88,000 Total Assets 000 44,003,000 44,529,000 42,966,000 v Current Liabilities 000 16.716,000 16,194,000 14,133,000 Common Stock 89,000 89,000 88,000 HOME DEPOT v Current Assets 000 18,529,000 18,933,000 17,724,000 Payables And Accrued Exp. 000 12,539,000 11,628,000 11,212,000 Additional Paid in Capital 000 10,578,000 10,192,000 9,787,000 Cash, Cash Equivalents & S... 000 1,778,000 3,595,000 2,538,000 Payables 000 8,422,000 7,818,000 7,533,000 Retained Earnings 46,423,000 39,935,000 35,519,000 BALANCE SHEET Cash And Cash Equivalents 000 1,778,000 3,595,000 2,538,000 Accounts Payable 000 7.755,000 7.244.000 7.000,000 Treasury Stock 000 58,196,000 48,196,000 40,194,000 000 1,936,000 1,952,000 2,029,000 Total Tax Payable 667,000 574,000 533,000 Receivables Gains Losses Not Affecting Re -772,000 -566,000 867,000 000 1,604,000 Income Tax Payable 11,000 54,000 25,000 Accounts receivable 1,640,000 2,029,000 Total Capitalization .000 24,929,000 25,721,000 26,682,000 Current Accrued Expenses 000 4,117,000 3,810,000 3,679,000 Other Receivables 100 296,000 348,000 Common Stock Equity 000 -1,878,000 1,454,000 4,333,000 2,395,000 2,761,000 Inventory 13,925,000 v Current Debt And Capital .. 000 1,252,000 12,748,000 12,549,000 Capital Lease Obligations 000 Current Debt 2,395,000 2,761,000 1,252,000 Finished Goods .000 13,925,000 12,748,000 12,549,000 Net Tangible Assets 000 -821,000 Other Current Borrowings 000 4,130,000 2,240,000 Other Current Assets 000 890,000 638,000 608,000 000 Current Capital Lease Oblig 100 Working Capital 1,813,000 2,739,000 3,591,000 Total non-current assets 1000 25,474,000 25,596,000 25,242,000 Current Deferred Liabilities 000 1,782,000 1,805,000 1,669,000 Invested Capital 1000 27,324,000 28,482,000 27,934,000 Net PPE 000 22,375,000 22,075,000 21,914,000 Current Deferred Revenue 000 1,782,000 1,805,000 1,669,000 Tangible Book Value 000 4,130,000 821,000 2,240,000 Gross PPE .000 42,939,000 41,414,000 40,426,000 Other Current Liabilities 000 5,060,000 .549,000 4,397,000 Total Debt 1000 29,202,000 27.028,000 23,601,000 Properties Total Non Current Liabilities ... 000 29,165,000 26,881,000 24,500,000 Net Debt 000 27,424,000 23,433,000 21,063,000 Land And Improvements 000 8,363,000 8,352,000 8,207,000 Long Term Debt And Capit.. 26,807,000 24,267,000 22,349,000 Share Issued 000 1,782,000 1,780,000 1,776,000 Buildings And Improvem... 000 18,199,000 18,073,000 17,772,000 Long Term Debt Looo 26,807,000 24,267,000 22,349,000 Ordinary Shares Number 000 1,105,000 1,158,000 1,203,000 Machinery Furniture Equ... 000 12,460,000 11,506,000 11,020,000 Long Term Capital Lease O.. 000 Treasury Shares Number 677,000 622,000 573,000 Other Properties 000 1,392,000 1,308,000 1,169,000 Non Current Deferred Liab.. 00 491,000 440,000 296,000 Construction in Progress 000 820,000 538,000 739,000 Non Current Deferred Taxe... 491,000 440,000 296,000 Leases 000 1,705,000 1,637,000 1,519,000 Other Non Current Liabilities 000 1,867,000 2.174,000 1,855,000 Accumulated Depreciation 1,000 20,564,000 -19,339,000 -18,512,000 Total Equity Gross Minority Inte... 000 -1,878,000 1,454,000 4,333,000 v Goodwill And Other Intang... 000 2,252,000 2,275,000 2,093,000 v Stockholders' Equity 000 -1,878,000 1,454,000 4,333,000 Goodwill 000 2,252,000 2,275,000 2,093,000 v Capital Stock Do 89,000 89,000 88,000Breakdown 020 1/31/2019 1/31/2018 1/31/2017 Cash Flow from Continuing In.. 000 -2,416,000 -2,228,000 -1,583,000 End Cash Position 000 1,778,000 3,595,000 2,538,000 Operating Cash Flow 13,038,000 12,031,000 9,783,000 Capital Expenditure Reported 000 -2,442,000 -1,897,000 -1,621,000 Changes in Cash 100 -1,798,000 933,000 330,000 Cash Flow from Continuing O.. 000 13,038,000 12,031,000 9,783,000 Net PPE Purchase And Sale 33,000 47.000 38.000 Effect of Exchange Rate Changes 19,000 124,000 -8,000 Net Income from Continuing - ooo 11,121,000 8,630,000 7,957,000 Sale of PPE 33,000 47,000 38,000 Beginning Cash Position 000 3,595,000 2,538,000 2,216,000 Depreciation Amortization... 000 2,152,000 2,062,000 1,973,000 Net Business Purchase An.. -21,000 -374,000 Income Tax Paid Supplemental Data 000 3,774,000 4,732,000 4,623,000 HOME DEPOT Depreciation & amortization 000 2,152,000 2,062,000 -21,000 1,973,000 Purchase of Business 374,000 Interest Paid Supplemental Data 000 1,035,000 991,000 924,000 Net Investment Purchase .. CASH Deferred Tax 26,000 Capital Expenditure 000 -2,442,000 -1,897,000 -1,621,000 FLOW Deferred Income Tax 26,000 Sale of Investment Net Other Investing Changes 14,000 -4,000 Issuance of Capital Stock 00 236,000 255,000 218,000 Asset Impairment Charge 247,000 Financing Cash Flow 000 12,420,000 8,870,000 7.870,000 Issuance of Debt 000 3,466,000 3,841,000 5,319,000 Stock based compensation 100 282,000 273,000 267,000 Cash Flow from Continuing Fi... -12,420,000 -8,870,000 -7,870,000 Repayment of Debt 000 -1,429,000 -543,000 -3,045,000 Other non-cash items 103,000 " Net Issuance Payments of . 2,037,000 3,298,000 2,274,000 Repurchase of Capital Stock 000 9,963,000 -8,000,000 -6,880,000 Change in working capital 100 687,000 1,066,000 414,000 Net Long Term Debt Iss- 000 2,257,000 2,448,000 1,914,000 100 33,000 139,000 -138,000 Free Cash Flow 000 10,596,000 10,134,000 8,162,000 Change in Receivables Long Term Debt Issuance 000 3,466,000 2,991,000 4.959,000 Change in Inventory 100 1,244,000 84,000 769,000 Long Term Debt Payments 000 -1,209,000 543,000 3,045,000 Change in Payables And.. 701,000 381,000 555,000 Net Short Term Debt Iss-. 100 220,000 850,000 360,000 Change in Payable 100 701,000 381,000 555,000 Short Term Debt Issuance 850,000 360,000 Change in Tax Paya-.. DO 42,000 29,000 109,000 Short Term Debt Payme. 100 -220,000 Change in Income T... DO 42,000 29,000 109,000 Net Common Stock Issuan. 9,727,000 -7,745,000 6,662,000 Change in Account Pa- 743,000 352,000 446,000 Common Stock Issuance 00 236,000 255,000 218,000 Change in Other Current A... -257,000 -10,000 48,000 Common Stock Payments 9.963,000 8,000,000 -6,880,000 Change in Other Working C... 00 80,000 640,000 -14,000 Cash Dividends Paid 000 4,704,000 4,212,000 3,404,000 Investing Cash Flow 000 -2,416,000 -2,228,000 -1,583,000 Common Stock Dividend P... 000 -4,704,000 -4,212,000 -3,404,000 Cash Flow from Continuing In... 000 -2,416,000 -2,228,000 -1,583,000 Net Other Financing Charges 100 -26,000 -211,000 -78,000 Capital Expenditure Reported 1000 2,442,000 -1,897,000 -1,621,000 End Cash Position 1,778,000 3,595,000 2,538,000Breakdown :020 1/31/2019 1/31/2018 1/31/2017 Basic EPS 03 0.0098 0.0073 0.0065 Total Revenue 5,000 108,203,000 100,904,000 94,595,000 Diluted EPS 03 0.0097 0.0073 0.0065 Operating Revenue 5,000 108,203,000 100,904,000 94,595,000 Basic Average Shares 000 1,137,000 1,178,000 1,229,000 Cost of Revenue ,000 71,043,000 66,548,000 62,282,000 Diluted Average Shares 1,143,000 1,184,000 1,234,000 HOME DEPOT Gross Profit ,000 37.160,000 34,356,000 32,313,000 Total Operating Income as Reported .000 15,530,000 14,681,000 13,427,000 .000 Operating Expense 21,383,000 Total Expenses 86.223,000 ,000 19,675,000 92,426,000 18,886,000 81,168,000 INCOME Net Income from Continuing & Dis.. .000 11,121,000 8,630,000 7,957,000 STATEMENT Selling General and Administrati. ,000 19,513,000 17,864,000 17,132,000 Normalized Income 000 11,309,708 8,630,000 7,957,000 Depreciation Amortization D... 000 1,870,000 1,811,000 1,754,000 Interest Income 93,000 74,000 36,000 Depreciation & amortization 000 1,870,000 1,811,000 1,754,000 Interest Expense 000 1,051,000 1,057.000 972,000 Operating Income .000 15,777,000 14,681,000 13,427,000 Net Interest Income 000 958,000 983,000 -936,000 Net Non Operating Interest Inc.. 000 -958,000 -983,000 -936,000 EBIT .000 15,607,000 14,755,000 13,463,000 Interest Income Non Operating DO 93,000 74,000 36,000 EBITDA Interest Expense Non Operating 000 1,051,000 1,057,000 972,000 Reconciled Cost of Revenue 1000 70,761,000 66,297,000 62,063,000 Other Income Expense -263,000 Reconciled Depreciation 000 2,152,000 2,062,000 1,973,000 Special Income Charges -247,000 Net Income from Continuing Oper... .000 11,121,000 8,630,000 7,957,000 Impairment of Capital Assets 247,000 Total Unusual Items Excluding Goo... -247,000 Other Non Operating Income Ex... -16,000 Total Unusual Items 247.000 Pretax Income ,000 14,556,000 13,698,000 12,491,000 Normalized EBITDA .000 18,006,000 16,817,000 15,436,000 Tax Provision 000 3,435,000 5,068,000 4.534,000 Tax Rate for Cales -58,292 0 0 Net Income Common Stockhold... ,000 11,121,000 8,630,000 7,957,000 Tax Effect of Unusual Items Net Income .000 11,121,000 8,630,000 7,957,000 Net Income Including Non-. ,000 11,121,000 8,630,000 7,957,000 Net Income Continuous Op... ,000 11,121,000 8,630,000 7,957,000 Diluted NI Available to Com Stock... ,000 11,121,000 8,630,000 7.957,000 Basic EPS 03 0.0098 0.0073 0.0065Breakdown 020 1/31/2019 1/31/2018 1/31/2017 Total Liabilities Net Minority Int... ,000 30,864,000 29,418,000 27,974,000 Total Equity Gross Minority Inte... 000 3,644,000 5,873,000 6,434,000 Total Assets Looo 34,508,000 35,291,000 34,408,000 Current Liabilities 1000 14,497,000 12,096,000 11,974,000 ~ Stockholders' Equity 000 3,644,000 5,873,000 6,434,000 Current Assets 000 14,228,000 12,772,000 12,000,000 Payables And Accrued Exp.. 000 9,135,000 7,367,000 7,467,000 Capital Stock 00 401,000 415,000 433,000 LOWE'S Cash, Cash Equivalents & S.. 00 729,000 690,000 658,000 v Payables 8,951,000 7,183,000 7,273,000 Preferred Stock 0 BALANCE Cash And Cash Equivalents 511,000 588,000 558,000 Accounts Payable 8,279,000 6,590,000 6,651,000 Common Stock 401,000 415,000 433,000 SHEET Other Short Term Investme... oo 218,000 102,000 100,000 22,000 Total Tax Payable 00 287,000 253,000 318,000 Additional Paid in Capital Retained Earnings 000 3,452,000 5,425,000 5,241,000 v Inventory 000 12,561,000 11,393,000 10,458,000 Dividends Payable 100 385,000 340,000 304,000 Gains Losses Not Affecting Re... 100 209,000 11,000 -240,000 Finished Goods ooo 12,561,000 11,393,000 10,458,000 Current Accrued Expens... 184,000 184,000 194,000 Total Capitalization 000 18,035,000 21,437,000 20,828,000 Other Current Assets 000 938,000 689,000 884,000 Interest Payable 00 184,000 184,000 194,000 Common Stock Equity 000 3,644,000 5,873,000 6,434,000 Total non-current assets 000 20,280,000 22,519,000 22,408,000 Current Provisions 100 194,000 Capital Lease Obligations 000 Net PPE 000 18,432,000 19,721,000 19,949,000 Pension & Other Post Retirem... 100 562,000 747,000 790,000 Net Tangible Assets 000 3,341,000 4,566,000 5,352,000 v Gross PPE 35,863,000 36,940,000 36,918,000 Current Debt And Capital ... OOO 1,832,000 1,431,000 1,305,000 Working Capital 00 -269,000 576,000 26,00 Properties Current Debt 000 1,832,000 1,431,000 1,305,000 Invested Capital Logo 19,867,000 22,868,000 22,133,000 Land And Improvements 000 7,196,000 7,414,000 7,329,000 Other Current Borrowings 000 Tangible Book Value 000 3,341,000 4,566,000 5,352,000 Buildings And Improvem-. 18,052,000 18,521,000 18,147,000 Current Capital Lease Oblig... 100 Total Debt 16,223,000 16,995,000 15,699,000 Machinery Furniture Equ... ,000 10,090,000 10,475,000 10,978,000 Net Debt 000 15,712,000 16,407.000 15,141,000 Current Deferred Liabilities 1,299,000 1,378,000 1,253,000 00 801,000 910,000 Other Properties 000 Share Issued 830,000 Current Deferred Revenue 000 1,299,000 1,378,000 1,253,000 Ordinary Shares Number 00 801,000 830,000 910,000 Construction in Progress 525,000 530,000 464,000 Other Current Liabilities 000 1,375,000 1,173,000 1,159,000 Accumulated Depreciation 1.000 -17,431,000 -17,219,000 -16,969,000 Total Non Current Liabilities .. .000 16,367,000 17,322,000 16,000,000 Goodwill And Other Intang... 00 303,000 1,307,000 1,082,000 Long Term Debt And Capit-. 1000 14,391,000 15,564,000 14,394,000 Goodwill 803,000 1,307,000 1,082,000 Long Term Debt 1000 14,391,000 15,564,000 14,394,000 Investments And Advances 256,000 408,000 366,000 Long Term Capital Lease O... 000 Non Current Deferred Ass... 00 294,000 168,000 222,000 Non Current Deferred Liab... 100 827,000 803,000 763,000 Non Current Deferred Taxe-.. O0 294,000 168,000 222,000 Non Current Deferred Rev... 100 827,000 803,000 763,000 Other Non Current Assets 00 995,000 915,000 789,000 Other Non Current Liabilities 00 1,149,000 955,000 843,000Breakdown 020 1/31/2019 1/31/2018 1/31/2017 Sale of PPE 76,000 45,000 Changes in Cash 00 -11,000 17,000 164,000 Operating Cash Flow 000 6,193,000 5,065,000 5,617,000 Net Business Purchase An-.. 0 -509,000 -2,356,000 Effect of Exchange Rate Changes 0 12,000 13,000 -11,000 Cash Flow from Continuing O... 000 6,193,000 5,065,000 5,617,000 Purchase of Business 509,000 -2,356,000 Beginning Cash Position 00 588,000 558,000 405,000 LOWE'S Net Income from Continuing 2,314,000 3,447,000 3,093,000 v Net Investment Purchase . 20,000 133,000 138,000 Other Cash Adjustment Outside-.. -54,000 100 CASH Operating Gains Losses 9,000 382,000 302,000 Purchase of Investment -1,373,000 -981,000 -1,295,000 Capital Expenditure 000 -1,174,000 -1,123,000 -1,167,000 FLOW Gain Loss On Investment S-. Sale of Investment 1,393,000 1,114,000 1,433,000 Issuance of Debt 000 3,593,000 3,733,000 Earnings Losses from Equit... 9,000 82,000 302,000 Net Other Investing Changes -2,000 13,000 -13,000 Repayment of Debt 000 -741,000 -2,849,000 -1,173,000 Depreciation Amortization-. boo 1,607,000 1,540,000 1,590,000 Financing Cash Flow 000 -5,124,000 -3,607,000 -2,092,000 Repurchase of Capital Stock 000 -3,037,000 -3,192,000 -3,595,000 Depreciation & amortization 000 1,607,000 1,540,000 1,590,000 Cash Flow from Continuing Fi... 1000 -5,124,000 -3,607,000 -2,092,000 Free Cash Flow 5,019,000 3,942,000 4,450,000 Deferred Tax 00 151,000 53,000 28,000 Net Issuance Payments of -.- 000 -741,000 744,000 2,560,000 Deferred Income Tax 00 -151,000 53,000 28,000 Net Long Term Debt Iss... DOO -326,000 119,000 2,094,000 Asset Impairment Charge 952,000 Long Term Debt Issuance 000 2,968,000 3,267,000 Stock based compensation 74,000 99,000 90,000 Long Term Debt Payments 000 326,000 2,849,000 -1,173,000 Other non-cash items 630,000 40,000 143,000 Net Short Term Debt Iss... -415,000 625,000 466,000 Change in working capital 758,000 496,000 371,000 Short Term Debt Issuance 625,000 466,000 Change in Inventory -1,289,000 -791,000 178,000 Short Term Debt Payme. -415,000 Change in Payables And.. 100 1,720,000 92.000 653,000 Net Common Stock Issuan.- 000 -3,037,000 -3,192,000 -3,595,000 Change in Payable 100 1,720,000 -92,000 653,000 Common Stock Payments 000 -3,037,000 3,192,000 -3,595,000 Change in Account Pa... 100 1,720,000 92,000 $53,000 Cash Dividends Paid 000 -1,455,000 1,288,000 -1,121,000 Change in Other Current A... 110,000 250,000 -183,000 Common Stock Dividend P... 000 1,455,000 1,288,000 1,121,000 Change in Other Current Li-- 100 437,000 137,000 79,000 Proceeds from Stock Option .. 00 114,000 139,000 139,000 Investing Cash Flow 000 1,080,000 1,441,000 -3,361,000 Net Other Financing Charges 5,000 10,000 -75,000 Cash Flow from Continuing In. 000 -1,080,000 -1,441,000 -3,361,000 End Cash Position 511,000 588,000 558,000 Capital Expenditure Reported 000 1,174,000 1,123,000 1,167,000 Changes in Cash 11,000 17,000 164,000 Net PPE Purchase And Sale 76,000 45.000 37,000 Effect of Exchange Rate Changes 12,000 13,000 -11,000Breakdown 020 1/31/2019 1/31/2018 1/31/2017 Otherunder Preferred Stock Divi... DO 7,000 11,000 29,000 Total Revenue 000 71,309,000 68,619,000 65,017,000 Diluted NI Available to Com Stock... 000 2,307,000 3,436,000 3,062,000 Operating Revenue .000 69,736,000 68,619,000 65,017,000 Basic EPS 55 0.0028 0.0041 0.0035 LOWE'S Cost of Revenue 000 48,401,000 45.210,000 42,553,000 Diluted EPS 0.0028 0.0041 0.0035 Gross Profit 000 22,908,000 23,409,000 22,464,000 INCOME Basic Average Shares 811,000 839.000 880,000 STATEMENT v Operating Expense ,000 18,890.000 16,823,000 16,618,000 Diluted Average Shares 812,000 840,000 881,000 Selling General and Administrati.. .000 17,413,000 15.376,000 15,129,000 Total Operating Income as Reported 000 4,018,000 6,586,000 5,846,000 Depreciation Amortization D... 000 1,477,000 1,447,000 1,489.000 Total Expenses 000 67,291,000 62,033,000 59,171,000 Depreciation & amortization 1,477,000 1,447,000 1,489,000 Net Income from Continuing & Dis- DOO 2,314,000 3,447,000 3,091,000 Operating Income 4.018,000 6,586,000 5,846,000 Normalized Income 100 2,314,000 3,738,392 3,091,000 Net Non Operating Interest Inc... -624,000 633,000 -645,000 Interest Income DO 28,000 16,000 12,000 Interest Income Non Operating DO 28,000 16,000 12,000 Interest Expense 100 652,000 649,000 657,000 Interest Expense Non Operating 652,000 649.000 657.000 Net Interest Income 100 -624,000 -633,000 -645,000 Total Other Finance Cost DO 12,000 19.000 23,000 EBIT 100 4.046,000 6,138,000 5,858,000 v Other Income Expense -464,000 EBITDA Special Income Charges -464,000 000 Other Special Charges Reconciled Cost of Revenue 48,271,000 464,000 45,117,000 42,452,000 DOO Pretax Income DO0 3.394,000 5,489,000 1,607,000 5,201,000 Reconciled Depreciation 1,540,000 1,590,000 Tax Provision 1.080,000 DOO 2,042,000 2,108,000 Net Income from Continuing Oper... 2,314,000 3,447,000 3,091,000 Net Income Common Stockhold-.. 000 2,307,000 3,436,000 3,062,000 Total Unusual Items Excluding Goo. -464,000 Net Income 000 2,314,000 3,447,000 3,091,000 Total Unusual Items -464,000 Net Income Including Non... 000 2,314,000 3,447,000 3,093,000 Normalized EBITDA DOO 5,653,000 8,142,000 7,448,000 Net Income Continuous Op-.. 2,314,000 3,447,000 3,093,000 Tax Rate for Calcs D 0 0 Minority Interests -2,000 Tax Effect of Unusual Items -172,608