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Lowes Companies, Inc (LOW) and its subsidiaries operate as a home imporvement retailer in the US and Canada. As of February 1, 2008, it operated
Lowes Companies, Inc (LOW) and its subsidiaries operate as a home imporvement retailer in the US and Canada. As of February 1, 2008, it operated 1,534 stores in 50 states and Canada. The companys balance sheet for February 1, 2008 is:
In Thousands of Dollars | Financial Structure |
Liabilities | |
Current liabilities | |
Accounts payable | $4,137,000 |
Short/current debt | $1,104,000 |
Other current liabilities | $2,510,000 |
Total current liabilities | $7,751,000 |
Long-term debt | $5,576,000 |
Other long-term liabilities | $670,000 |
Long-term liabilities | $6,246,000 |
Stockholder equity | $16,098,000 |
Total | $30,095,000 |
a. Calculate the values of Lowes debt ratio?
And interest-bearing debt ratio?
b. If the market value of Lowes common equity is $35.86 billio and Lowes has no excess cash, what is the firms debt-to-enterprise-value ratio?
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