Match the following and select the correct answer from the drop-down list.
Refer to Lowes Companies, Inc. Annual Report in your Textbook (Appendix B, B1-B15), to answer the following ratios:
- Current Ratio in Fiscal Years 2019 and 2018
- Debt Ratio in Fiscal Year 2019
- Inventory Days or Days to Sell in Fiscal Year 2019
Evaluates the combination of debt and/or equity used by the company to fund its operations and finance its assets (Capital Structure)Answer 1Choose...Net Profit MarginDebt RatioSolvency Ratio5.9%Current Ratio1.01:1Payable Days (Days to Pay)Operational Efficiency Ratios95%Receivable Day (Days to Collect)3.89Liquidity RatioInventory Days (Days to Sell).98:196 days3.8Inventory Days or Days to Sell in Fiscal Year 2019Answer 2Choose...Net Profit MarginDebt RatioSolvency Ratio5.9%Current Ratio1.01:1Payable Days (Days to Pay)Operational Efficiency Ratios95%Receivable Day (Days to Collect)3.89Liquidity RatioInventory Days (Days to Sell).98:196 days3.8Average number of days for the company to sell its inventoryAnswer 3Choose...Net Profit MarginDebt RatioSolvency Ratio5.9%Current Ratio1.01:1Payable Days (Days to Pay)Operational Efficiency Ratios95%Receivable Day (Days to Collect)3.89Liquidity RatioInventory Days (Days to Sell).98:196 days3.8Average number of days for the company to collect after a sale has been madeAnswer 4Choose...Net Profit MarginDebt RatioSolvency Ratio5.9%Current Ratio1.01:1Payable Days (Days to Pay)Operational Efficiency Ratios95%Receivable Day (Days to Collect)3.89Liquidity RatioInventory Days (Days to Sell).98:196 days3.8Measures the ability of the company to pay its short-term debtsAnswer 5Choose...Net Profit MarginDebt RatioSolvency Ratio5.9%Current Ratio1.01:1Payable Days (Days to Pay)Operational Efficiency Ratios95%Receivable Day (Days to Collect)3.89Liquidity RatioInventory Days (Days to Sell).98:196 days3.8Average number of days for the company to pay its obligationAnswer 6Choose...Net Profit MarginDebt RatioSolvency Ratio5.9%Current Ratio1.01:1Payable Days (Days to Pay)Operational Efficiency Ratios95%Receivable Day (Days to Collect)3.89Liquidity RatioInventory Days (Days to Sell).98:196 days3.8 Assess the ability of the company to use its resources in order to generate income.Answer 7Choose...Net Profit MarginDebt RatioSolvency Ratio5.9%Current Ratio1.01:1Payable Days (Days to Pay)Operational Efficiency Ratios95%Receivable Day (Days to Collect)3.89Liquidity RatioInventory Days (Days to Sell).98:196 days3.8Debt Ratio in Fiscal 2019 express as percentageAnswer 8Choose...Net Profit MarginDebt RatioSolvency Ratio5.9%Current Ratio1.01:1Payable Days (Days to Pay)Operational Efficiency Ratios95%Receivable Day (Days to Collect)3.89Liquidity RatioInventory Days (Days to Sell).98:196 days3.8Current Ratio in Fiscal Year 2018Answer 9Choose...Net Profit MarginDebt RatioSolvency Ratio5.9%Current Ratio1.01:1Payable Days (Days to Pay)Operational Efficiency Ratios95%Receivable Day (Days to Collect)3.89Liquidity RatioInventory Days (Days to Sell).98:196 days3.8Current Ratio in Fiscal Year 2019