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Please answer this problem following all of the parts thorougly. Can you give a simple explanation for each part and provide all the calculations that
Please answer this problem following all of the parts thorougly. Can you give a simple explanation for each part and provide all the calculations that led to the conclusions.
ATC 9-1 Business Applications Case Anabzing Home Depot and Lowe's The following information relates to Home Depot, Inc., and Lowe's Companies, Ine. for their 2017 and 2016 fiscal years LOWTS COMPANIES, NIC. Selected Financial Information (amounts in millions except per share data) Required 2. Compute the following ratios for the companies' 2017 fiscal years (Jears ending in January and February of 2018): (1) Current ratio (2) Average days to sell inventory. (Use average inventory:) (3) Debt-to-assets ratio. (4) Return on investment. (Use average assets and use "carnings from continuing operations" ratlier than "net earnings.") (5) Gross margin peroentage (6) Asset turnover: (Use average assets.) (7) Return on sales. (Use "earnings from continuing operations" rather than "net earnings.") (8) Plant assets to longterm debt ratio. b. Which company appears to be more profitable? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion. c. Which company appears to have the higher level of financial riak? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion d. Which company appears to be charging higher prices for its goods? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion e. Which company appears to be the more efficient at using its assets? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion Step by Step Solution
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