Conduct a financial analysis report on the two companies:

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

** see charts at the bottom or open the link **

and

HomeDepot https://finance.yahoo.com/quote/HD?p=HD

** see charts at the bottom or open the link **

You will need to download the most recent annual report and be able to compose a written report and compute selected ratios that will help with your investment decision.

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.

3. Which organization you would prefer to invest in and cite three key reasons as to why you made such a decision.

Chart for 2019 & 2018

LOWE'S:

Breakdown 020 1/31/2019 1/31/2018 1/31/2017 Total Assets 000 44,003,000 44,529,000 42,966,000 HOME DEPOT Current Assets 000 18,529,000 18,933,000 17,724,000 Cash, Cash Equivalents & S... 000 1,778,000 3,595,000 2,538,000 BALANCE SHEET Cash And Cash Equivalents 000 1,778,000 3,595,000 2,538,000 Receivables 000 1,936,000 1,952,000 2,029,000 PART 1 Accounts receivable 000 1,640,000 1,604,000 2,029,000 Other Receivables 00 296,000 348,000 v Inventory 000 13,925,000 12,748,000 12,549,000 Finished Goods ,000 13,925,000 12,748,000 12,549,000 Other Current Assets 000 890,000 638,000 608,000 Total non-current assets 000 25,474,000 25,596,000 25,242,000 Net PPE 000 22,375,000 22,075,000 21,914,000 Gross PPE ,000 42,939,000 41,414,000 40,426,000 Properties 0 0 Land And Improvements 000 8,363,000 8,352,000 8,207,000 Buildings And Improvem-.. 000 18,199,000 18,073,000 17,772,000 Machinery Furniture Equ-.. ,000 12,460,000 506,000 11,020,000 Other Properties 000 1,392,000 1,308,000 1,169,000 Construction in Progress 000 820,000 538,000 739,000 Leases 000 1,705,000 1,637,000 1,519,000 Accumulated Depreciation 1,000 -20,564,000 -19,339,000 -18,512,000 Goodwill And Other Intang... 000 2,252,000 2,275,000 2,093,000 Goodwill 000 2,252,000 2,275,000 2,093,000Total Liabilities Net Minority Int... ,000 45,881,000 43,075,000 38,633,000 Current Liabilities ,000 16,716,000 16,194,000 14,133,000 Payables And Accrued Exp-.. ,000 12,539,000 11,628,000 11,212,000 Payables 000 8,422,000 7,818,000 7,533,000 Accounts Payable 000 7,755,000 7,244,000 7,000,000 v Total Tax Payable 100 667,000 574,000 533,000 Income Tax Payable 11,000 54,000 25,000 HOME DEPOT Current Accrued Expenses 000 4,117,000 3,810,000 3,679,000 BALANCE Current Debt And Capital ..- 000 2,395,000 2,761,000 1,252,000 SHEET Current Debt 000 2,395,000 2,761,000 1,252,000 PART 2 Other Current Borrowings 000 Current Capital Lease Oblig... 100 Current Deferred Liabilities 000 1,782,000 1,805,000 1,669,000 Current Deferred Revenue 000 1,782,000 1,805,000 1,669,000 Other Current Liabilities 000 5,060,000 4,549,000 4,397,000 Total Non Current Liabilities ... ,000 29,165,000 26,881,000 24,500,000 Long Term Debt And Capit... ,000 26,807,000 24,267,000 22,349,000 Long Term Debt ,000 26,807,000 24,267,000 22,349,000 Long Term Capital Lease O... 000 Non Current Deferred Liab... 100 491,000 440,000 296,000 Non Current Deferred Taxe... 100 491,000 440,000 296,000 Other Non Current Liabilities 000 1,867,000 2,174,000 1,855,000 Total Equity Gross Minority Inte... 000 -1,878,000 1,454,000 4,333,000 * Stockholders' Equity .000 -1,878,000 1,454,000 4,333,000 Capital Stock DO 89,000 89,000 88,000Capital Stock 89,000 89,000 88,000 Common Stock 89,000 89,000 88,000 Additional Paid in Capital 000 10,578,000 10,192,000 9,787,000 HOME DEPOT Retained Earnings ,000 46,423,000 39,935,000 35,519,000 BALANCE Treasury Stock 000 58,196,000 48,196,000 40,194,000 SHEET Gains Losses Not Affecting Re... )00 -772,000 -566,000 -867,000 Total Capitalization ,000 PART 3 24,929,000 25,721,000 26,682,000 Common Stock Equity 000 1,878,000 1,454,000 4,333,000 Capital Lease Obligations 000 Net Tangible Assets .000 -4,130,000 -821,000 2,240,000 Working Capital 000 1,813,000 2,739,000 3,591,000 Invested Capital 000 27,324,000 28,482,000 27,934,000 Tangible Book Value 000 -4,130,000 -821,000 2,240,000 Total Debt 000 29,202,000 27,028,000 23,601,000 Net Debt 000 27,424,000 23,433,000 21,063,000 Share Issued 000 1,782,000 1,780,000 1,776,000 Ordinary Shares Number 000 1,105,000 1,158,000 1,203,000 Treasury Shares Number 00 677,000 622,000 573,000Breakdown 020 1/31/2019 1/31/2018 1/31/2017 Operating Cash Flow .000 13,038,000 12,031,000 9,783,000 Cash Flow from Continuing O... ,000 13,038,000 12,031,000 9,783,000 Net Income from Continuing ... .000 11,121,000 8,630,000 7,957,000 Depreciation Amortization... 000 2,152,000 2,062,000 1,973,000 HOME DEPOT Depreciation & amortization 000 2,152,000 2,062,000 1,973,000 CASH Deferred Tax 00 26,000 FLOW Deferred Income Tax 00 26,000 Asset Impairment Charge 247,000 PART 1 Stock based compensation 282,000 273,000 267,000 Other non-cash items 00 -103,000 Change in working capital 100 -687,000 1,066,000 -414,000 Change in Receivables 100 33,000 139,000 -138,000 Change in Inventory -1,244,000 -84,000 -769,000 Change in Payables And... 00 701,000 381,000 555,000 Change in Payable 00 701,000 381,000 555,000 Change in Tax Paya... -42,000 29,000 109,000 Change in Income T... -42,000 29,000 109,000 Change in Account Pa-.. 743,000 352,000 446,000 Change in Other Current A... -257,000 -10,000 -48,000 Change in Other Working C... 00 80,000 640,000 14,000 Investing Cash Flow 000 -2,416,000 2,228,000 -1,583,000 Cash Flow from Continuing In-.. 000 -2,416,000 -2,228,000 -1,583,000 Capital Expenditure Reported 000 -2,442,000 -1,897,000 -1,621,000Cash Flow from Continuing In-.. 000 -2,416,000 -2,228,000 -1,583,000 Capital Expenditure Reported 000 -2,442,000 -1,897,000 -1,621,000 Net PPE Purchase And Sale 33,000 47,000 38,000 Sale of PPE DO HOME DEPOT 33,000 47,000 38,000 Net Business Purchase An... -21,000 -374,000 0 CASH Purchase of Business -21,000 374,000 O FLOW Net Investment Purchase ... O PART 2 Sale of Investment O Net Other Investing Changes 00 14,000 4,000 Financing Cash Flow 1,000 -12,420,000 -8,870,000 -7,870,000 Cash Flow from Continuing Fi-.. 1,000 -12,420,000 -8,870,000 -7,870,000 Net Issuance Payments of ... 000 2,037,000 3,298,000 2,274,000 Net Long Term Debt Iss... 000 2,257,000 2,448,000 1,914,000 Long Term Debt Issuance 000 3,466,000 2,991,000 4,959,000 Long Term Debt Payments 000 -1,209,000 -543,000 -3,045,000 Net Short Term Debt Iss... )00 -220,000 850,000 360,000 Short Term Debt Issuance 850,000 360,000 Short Term Debt Payme... 220,000 Net Common Stock Issuan... 000 -9,727,000 -7,745,000 -6,662,000 Common Stock Issuance 100 236,000 255,000 218,000 Common Stock Payments 000 -9,963,000 8,000,000 6,880,000 Cash Dividends Paid 1000 -4,704,000 -4,212,000 -3,404,000 Common Stock Dividend P... 000 4,704,000 -4,212,000 -3,404,000 Net Other Financing Charges 0OO -26,000 -211,000 -78,000 End Cash Position 000 1,778,000 3,595,000 2,538,000End Cash Position 000 1,778,000 3,595,000 2,538,000 Changes in Cash 00 -1,798,000 933,000 330,000 Effect of Exchange Rate Changes 00 -19,000 124,000 -8,000 HOME DEPOT Beginning Cash Position 000 3,595,000 2,538,000 2,216,000 CASH Income Tax Paid Supplemental Data 000 3,774,000 4,732,000 4,623,000 FLOW Interest Paid Supplemental Data 000 1,035,000 991,000 924,000 -2,442,000 PART 3 Capital Expenditure 000 -1,897,000 -1,621,000 Issuance of Capital Stock 00 236,000 255,000 218,000 Issuance of Debt 000 3,466,000 3,841,000 5,319,000 Repayment of Debt 000 -1,429,000 -543,000 -3,045,000 Repurchase of Capital Stock 000 -9,963,000 -8,000,000 -6,880,000 Free Cash Flow 000 10,596,000 10,134,000 8,162,000Breakdown 1020 1/31/2019 1/31/2018 1/31/2017 Total Revenue 5,000 108,203,000 100,904,000 94,595,000 Operating Revenue 5,000 108,203,000 10,904,000 94,595,000 Cost of Revenue 000 71,043,000 66,548,000 62,282,000 HOME DEPOT Gross Profit 000 37,160,000 34,356,000 32,313,000 Operating Expense 000 21,383,000 19,675,000 18,886,000 INCOME STATEMENT Selling General and Administrati... ,000 19,513,000 17,864,000 17,132,000 Depreciation Amortization D... 000 1,870,000 1,811,000 1,754,000 PART 1 Depreciation & amortization 000 1,870,000 1,811,000 1,754,000 Operating Income ,000 15,777,000 14,681,000 13,427,000 Net Non Operating Interest Inc... 000 -958,000 983,000 -936,000 Interest Income Non Operating 93,000 74,000 36,000 Interest Expense Non Operating 000 1,051,000 1,057,000 972,000 Other Income Expense -263,000 Special Income Charges -247,000 Impairment of Capital Assets 247,000 Other Non Operating Income Ex.. -16,000 Pretax Income 000 14,556,000 13,698,000 12,491,000 Tax Provision 000 3,435,000 5,068,000 4,534,000 Net Income Common Stockhold... ,000 11,121,000 8,630,000 7,957,000 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 0.0065Basic EPS 03 0.0098 0.0073 0.0065 Diluted EPS 03 0.0097 0.0073 0.0065 Basic Average Shares 1,137,000 1,178,000 1,229,000 HOME DEPOT Diluted Average Shares 000 1,143,000 1,184,000 1,234,000 Total Operating Income as Reported ,000 15,530,000 14,681,000 13,427,000 INCOME Total Expenses 000 STATEMENT 92,426,000 86,223,000 81,168,000 Net Income from Continuing & Dis-.. 000 11,121,000 8,630,000 7,957,000 PART 2 Normalized Income ,000 11,309,708 8,630,000 7,957,000 Interest Income 93,000 74,000 36,000 Interest Expense 000 1,051,000 1,057,000 972,000 Net Interest Income 000 958,000 983,000 -936,000 EBIT 000 15,607,000 14,755,000 13,463,0 EBITDA Reconciled Cost of Revenue 000 70,761,000 66,297,000 62,063,000 Reconciled Depreciation 000 2,152,000 2,062,000 1,973,000 Net Income from Continuing Oper-.. ,000 11,121,000 8,630,000 7,957,000 Total Unusual Items Excluding Goo... -247,000 Total Unusual Items -247,000 Normalized EBITDA 000 18,006,000 16,817,000 15,436,000 Tax Rate for Calcs 0 O 0 Tax Effect of Unusual Items -58,292 0 0Breakdown 020 1/31/2019 1/31/2018 1/31/2017 Total Assets 000 34,508,000 35,291,000 34,408,000 Current Assets 000 14,228,000 12,772,000 12,000,000 LOWE'S Cash, Cash Equivalents & S.. 00 729,000 690,000 658,000 BALANCE Cash And Cash Equivalents 100 511,000 588,000 558,000 SHEET Other Short Term Investme... 100 218,000 102,000 100,000 PART 1 Inventory ,000 12,561,000 11,393,000 10,458,000 Finished Goods .000 12,561,000 11,393,000 10,458,000 Other Current Assets 000 938,000 689,000 884,000 Total non-current assets 000 20,280,000 22,519,000 22,408,000 Net PPE 000 18,432,000 19,721,000 19,949,000 Gross PPE 000 35,863,000 36,940,000 36,918,000 Properties Land And Improvements 000 7,196,000 7,414,000 7,329,000 Buildings And Improvem-.. ,000 18,052,000 18,521,000 18,147,000 Machinery Furniture Equ... ,000 10,090,000 10,475,000 10,978,000 Other Properties 000 Construction in Progress 100 525,000 530,000 464,000 Accumulated Depreciation i,000 -17,431,000 -17,219,000 -16,969,000 Goodwill And Other Intang... 100 303,000 1,307,000 1,082,000 Goodwill 00 303,000 1,307,000 1,082,000 Investments And Advances 00 256,000 408,000 366,000 Non Current Deferred Ass... 100 294,000 168,000 222,000 Non Current Deferred Taxe... 100 294,000 168,000 222,000 Other Non Current Assets 100 995,000 915,000 789,000Total Liabilities Net Minority Int... ,000 30,864,000 29,418,000 27,974,000 Current Liabilities ,000 14,497,000 12,096,000 11,974,000 Payables And Accrued Exp-.. 000 9,135,000 7,367,000 7,467,000 LOWE'S Payables 000 8,951,000 7,183,000 7,273,000 000 8,279,000 6,590,000 6,651,000 BALANCE Accounts Payable SHEET Total Tax Payable 100 287,000 253,000 318,000 Dividends Payable 100 385,000 340,000 304,000 PART 2 Current Accrued Expens.. 100 184,000 184,000 194,000 Interest Payable 00 184,000 184,000 194,000 Current Provisions 100 194,000 Pension & Other Post Retirem... 100 662,000 747,000 790,000 Current Debt And Capital ... 000 1,832,000 1,431,000 1,305,000 Current Debt 000 1,832,000 1,431,000 1,305,000 Other Current Borrowings 000 Current Capital Lease Oblig... 100 Current Deferred Liabilities 000 1,299,000 1,378,000 1,253,000 Current Deferred Revenue 000 1,299,000 1,378,000 1,253,000 Other Current Liabilities 000 1,375,000 1,173,000 1,159,000 Total Non Current Liabilities ... 16,367,000 17,322,000 16,000,000 Long Term Debt And Capit... ,000 14,391,000 15,564,000 14,394,000 Long Term Debt ,000 14,391,000 15,564,000 14,394,000 Long Term Capital Lease O... 000 Non Current Deferred Liab... 100 827,000 803,000 763,000 Non Current Deferred Rev... 00 827,000 803,000 763,000 Other Non Current Liabilities 100 1,149,000 955,000 843,000Total Equity Gross Minority Inte... 000 3,644,000 5,873,000 6,434,000 LOWE'S Stockholders' Equity 000 3,644,000 5,873,000 6,434,000 Capital Stock 00 401,000 415,000 433,000 BALANCE SHEET Preferred Stock 0 0 0 Common Stock 00 401,000 415,000 433,000 PART 3 Additional Paid in Capital 0 22,000 0 Retained Earnings 000 3,452,000 5,425,000 6,241,000 Gains Losses Not Affecting Re... )00 -209,000 11,000 -240,000 Total Capitalization 000 18,035,000 21,437,000 20,828,000 Common Stock Equity 000 3,644,000 5,873,000 6,434,000 Capital Lease Obligations 100 Net Tangible Assets 000 3,341,000 4,566,000 5,352,000 Working Capital 00 -269,000 676,000 26,000 Invested Capital 000 19,867,000 22,868,000 22,133,000 Tangible Book Value 000 3,341,000 4,566,000 5,352,000 Total Debt ,000 16,223,000 16,995,000 15,699,000 Net Debt 000 15,712,000 16,407,000 15,141,000 Share Issued 00 801,000 830,000 910,000 Ordinary Shares Number 00 801,000 830,000 910,000Breakdown 020 1/31/2019 1/31/2018 1/31/2017 Operating Cash Flow 000 6,193,000 5,065,000 5,617,000 Cash Flow from Continuing O-.. 000 6,193,000 5,065,000 5,617,000 LOWE'S Net Income from Continuing ... 000 2,314,000 3,447,000 3,093,000 CASH Operating Gains Losses DO 9,000 382,000 302,000 FLOW Gain Loss On Investr PART 1 Earnings Losses from Equit... 9,000 -82,000 302,000 Depreciation Amortization-.. 000 1,607,000 1,540,000 1,590,000 Depreciation & amortization 000 1,607,000 1,540,000 1,590,000 Deferred Tax 00 -151,000 53,000 28,000 Deferred Income Tax 00 151,000 53,000 28,000 Asset Impairment Charge 952,000 Stock based compensation 74,000 99,000 90,000 Other non-cash items 00 630,000 40,000 143,000 Change in working capital 000 758,000 -496,000 371,000 Change in Inventory 100 -1,289,000 -791,000 178,000 Change in Payables And.. 1,720,000 92,000 653,000 Change in Payable 1,720,000 -92,000 653,000 Change in Account Pa... 100 1,720,000 -92,000 653,000 Change in Other Current A--. 110,000 250,000 -183,000 Change in Other Current Li--. 100 437,000 137,000 79,000 Investing Cash Flow 000 -1,080,000 -1,441,000 -3,361,000 Cash Flow from Continuing In... 000 -1,080,000 -1,441,000 3,361,000 Capital Expenditure Reported 000 -1,174,000 -1,123,000 -1,167,000 Net PPE Purchase And Sale 00 76,000 45,000 37,000LOWE'S CASH FLOW PART 2 Sale of PPE V Net Business Purchase Anm Purchase of Business V Net Investment Purchase Purchase of Investment Sale of Investment Net lOther Investing Changes V Financing Cash Flow V Cash Flow from Continuing Fi--- V Net Issuance Payments of V Net Long Term Debt lss--- Long Term Debt Issuance Long Term Debt Payments V Net Short Term Debt lss--- Short Term Debt Issuance Short Term Debt Paymen- V Net Common Stock Issuanu- Common Stock Payments V Cash Dividends Paid Common Stock Dividend P- Proceeds from Stock Option Net Other Financing Charges V End Cash Position Changes in Cash Effect of Exchange Rate Changes '00 00 mo 00 000 000 000 000 000 000 00 000 000 000 000 00 1'0 00 00 26,000 0 0 20,000 4,323,000 1,393,000 -2,000 -5,124,000 -5,124,000 441,000 -326,000 0 -326,000 -41 5,000 -41 5,000 -3, 0 3?,000 -3, 0 3?,000 4,455,000 4,455,000 1 14,0 00 -5,000 51 1 ,0 00 41,000 42,000 45,000 609,000 609,000 133,0 00 -981,000 1,114,000 13,000 6,602,000 6,602,000 \"4,000 119,000 2,963,000 4,849,000 625,000 625,000 -3,192,000 6,192,000 4,288,000 4,288,000 189,000 40,000 588,000 1?,000 13,000 37,000 -2,356,000 4,356,000 138,000 4,295,000 1,433,000 43,000 4,092,000 -2,092,000 2,560,000 2,094,000 3,262,000 4,123,000 466,000 466,000 -3,595,000 -3,595,000 4,121,000 4,121,000 139,000 45,000 558,000 164,000 41,000 Changes in Cash 00 -11,000 17,000 164,000 Effect of Exchange Rate Changes 0 -12,000 13,000 -11,000 LOWE'S Beginning Cash Position 00 588,000 558,000 405,000 Other Cash Adjustment Outside... DO -54,000 CASH FLOW Capital Expenditure 000 -1,174,000 -1,123,000 -1,167,000 Issuance of Debt 000 0 3,593,000 3,733,000 PART 3 Repayment of Debt 000 -741,000 -2,849,000 -1,173,000 Repurchase of Capital Stock 000 -3,037,000 -3,192,000 -3,595,000 Free Cash Flow 000 5,019,000 3,942,000 4,450,000Breakdown 1020 1/31/2019 1/31/2018 1/31/201 Total Revenue 000 71,309,000 68,619,000 65,017,000 Operating Revenue 000 69,736,000 68,619,000 65,017,000 LOWE'S Cost of Revenue 000 48,401,000 45,210,000 42,553,000 Gross Profit 000 22,908,000 23,409,000 22,464,000 INCOME STATEMENT Operating Expense 000 18,890,000 16,823,000 16,618,000 Selling General and Administrati... 000 17,413,000 15,376,000 15,129,000 PART 1 Depreciation Amortization D.. 000 1,477,000 1,447,000 1,489,000 Depreciation & amortization 000 1,477,000 1,447,000 1,489,000 Operating In 000 4,018,000 6,586,000 5,846,000 Net Non Operating Interest Inc... -624,000 633,000 -645,000 Interest Income Non Operating 00 28,000 16,000 12,000 Interest Expense Non Operating 00 652,000 649,000 657,000 Total Other Finance Cost 12,000 19,000 23,000 Other Income Expense -464,000 Special Income Charges -464,000 Other Special Charges 464,000 Pretax Income 000 3,394,000 5,489,000 5,201,000 Tax Provision 000 1,080,000 2,042,000 2,108,000 Net Income Common Stockhold... 000 2,307,000 3,436,000 3,062,000 Net Income 000 2,314,000 3,447,000 3,091,000 Net Income Including Non... 000 2,314,000 3,447,000 3,093,000 Net Income Continuous Op... 000 2,314,000 3,447,000 3,093,000 ty Interests -2,000Otherunder Preferred Stock Divi... DO 7,000 11,000 29,000 Diluted NI Available to Com Stock... 000 2,307,000 3,436,000 3,062,000 Basic EPS 55 0.0028 0.0041 0.0035 Diluted EPS 55 0.0028 0.0041 0.0035 LOWE'S Basic Average Shares 00 811,000 839,000 880,000 INCOME Diluted Average Shares 00 812,000 840,000 881,000 STATEMENT Total Operating Income as Reported 000 4,018,000 6,586,000 5,846,000 PART 2 Total Expenses 000 67,291,000 62,033,000 59,171,000 Net Income from Continuing & Dis-.. 000 2,314,000 3,447,000 3,091,000 Normalized Income 000 2,314,000 3,738,392 3,091,000 Interest Income 28,000 16,000 12,000 Interest Expense 00 652,000 649,000 657,000 Net Interest Income 0OO -624,000 -633,000 -645,000 EBIT 000 4,046,000 6,138,000 5,858,000 EBITDA Reconciled Cost of Revenue 000 48,271,000 45,117,000 42,452,000 Reconciled Depreciation 000 1,607,000 1,540,000 1,590,000 Net Income from Continuing Oper... 000 2,314,000 3,447,000 3,091,000 Total Unusual Items Excluding Goo... -464,000 Total Unusual Items -464,000 Normalized EBITDA 000 5,653,000 8,142,000 7,448,000 Tax Rate for Calcs 0 0 Tax Effect of Unusual Items -172,608 0