Project #1 (Ratio Analysis) 1. Find the 2019 annual balance sheets and income statements for Home Depot and Lowe's (which were published on Feb-2020). For your convenience, all related financial statements are posted. 2. Construct the ratio table such as Table 4-7 on p.106. (You may exclude the following ratios: Market value added, Market to book ratio, EVA, Payout ratio, and Sustainable growth.) 3. Upload your file to the Canvas with five worksheets of which each worksheet designates the ratio table, balance sheet and income statement of each company, Home Depot Inc. Consolidated Balance Sheet: Assets US$ in millions Assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Operating lease right-of-use assets Goodwill Other assets Total fixed assets Total assets Liabilities: Payables and accrued expenses Current debt and capital obligations Current deferred liabilities Current liablities Other current liabilities Total current liabilities Long term debt and capital obligations Non current deferred liabilities Other non current liabilities Total non current liabilties Total liabilities Stockholder's Equity: Capital stock Additional paid in capital Retained earnings Treasury stock Gains losses not affecting Total stockholder's equity $ $ $ $ $ $ 31-Jan-20 2,133 $ 2,106 14,531 1,040 19,810 22,770 5,595 2,254 807 31,426 51,236 $ 12,618 $ 3,641 2,116 18,375 5,453 23,828 33,736 706 1,535 35,977 54,352 $ 89 $ 11,001 51,729 (65,196) (739) (3,116) $ 31-Jan-19 1,778 1,936 13,925 890 18,529 22,375 2,252 847 25,474 44,003 12,539 2,395 1,782 16,716 5,060 21,776 26,807 491 1,867 29,165 45,881 89 10,578 46, 423 (58,196) (772) (1,878) Home Depot inc. Consolidated Income Statement US$ in millions Feb 2, 2020 Net sales Cost of sales 110,225 (72,653) 37,572 Gross profit Selling, general and administrative (19,740) (1,989) Depreciation and amortization Impairment loss Operating expenses (21,729) Operating income 15,843 Interest and investment income 73 Interest expense (1,201) Other Interest and other, net (1,128) Earnings before provision for income taxes 14,715 14,556 13,698 12,491 Provision for income taxes (3,473) (3,435) (5,068) (4,534) 11,242 11,121 8,630 7,957 Net earnings Based on:10-K (filing date: 2020-03-25),10-K (filing date: 2019-03-28),10-K (filing date: 2018-03-22),10-K (filing date: 2017-03-23),10-K (filing date: 2016-03-24),10-K (filing date: 2015-03-26). 12 months ended: Feb 3, 2019 108,203 (71,043) 37,160 (19,513) (1,870) (247) (21,630) 15,530 93 (1,051) (16) (974) Jan 28, 2018 100,904 (66,548) 34,356 (17,864) (1,811) (19,675) 14,681 74 (1,057) (983) Jan 29, 2017 94,595 (62,282) 32,313 (17,132) (1,754) (18,886) 13,427 36 (972) (936) Jan 31, 2016 88,519 (58,254) 30,265 (16,801) (1,690) (18,491) 11,774 166 (919) (753) 11,021 (4,012) 7,009 Feb 1, 2015 83,176 (54,222) 28,954 (16,834) (1,651 (18,485) 10,469 337 (830) (493) 9,976 (3,631) 6,345 Lowe's Cos. Inc. Consolidated Balance Sheet: Assets US$ in millions Assets: Cash and cash equivalents Short-term investments Merchandise inventory, net Accounts receivable Deferred income taxes, net Other current assets Current assets Property, less accumulated depreciation Operating lease right-of-use assets Long-term investments Deferred income taxes, net Goodwill Other assets Noncurrent assets Total assets Liabilities: Payables and accrued expenses Current provisions Pension and other Current debt and captial Current deferred liabilities Other current liabilities Total current liabilities Long-term debt and capital Non current deferred liabilities Other non current liabilities Total long-term liabilities Total liabilities Stockholder's Equity: Capital stock Additional paid in capital Retained earnings Gains losses not affecting Total stockholder's equity 31-Jan-20 31-Jan-19 $ 716 $ 511 160 218 13,179 12,561 1,263 938 15,318 14,228 18,669 18,432 3,891 372 256 216 294 303 303 702 995 24,153 20,280 $ 39,471 $ 34,508 $ 8,557 $ 9,135 194 194 684 662 3,039 1,832 1,219 1,299 1,489 1,375 15,182 14,497 20,711 14,391 894 827 712 1,149 22,317 16,367 $ 37,499 $ 30,864 $ 381 $ 401 3,452 $ 1,727 (136) 1,972 $ (209) 3,644 Lowe's Cos. Inc. Consolidated Income Statement US$ in millions Net sales Cost of sales Gross margin Selling, general and administrative Depreciation and amortization Expenses Operating income Interest expense, net of amount capitalized (718) (652) Interest income 27 28 Interest, net (691) (624) Loss on extinguishment of debt Pre-tax earnings 3,394 5,489 5,201 Income tax provision 5,623 (1,342) 4,281 (2,042) (2,108) Net earnings (1,080) 2,314 3,447 3,093 Based on:10-K (filing date: 2020-03-23),10-K (filing date: 2019-04-02),10-K (filing date: 2018-04-02),10-K (filing date: 2017-04-04),10-K (filing date: 2016-03-29),10-K (filing date: 2015-03-31). 12 months ended: Jan 31, 2020 72,148 (49,205) 22,943 (15,367) (1,262) (16,629) 6,314 Feb 1, 2019 71,309 (48,401) 22,908 (17,413) (1,477) (18,890) 4,018 Feb 2, 2018 68,619 (45,210) 23,409 (15,376) (1,447) (16,823) 6,586 (649) 16 (633) (464) Feb 3, 2017 65,017 (42,553) 22,464 (15,129) (1,489) (16,618) 5,846 (657) 12 (645) Jan 29, 2016 59,074 (38,504) 20,570 (14,105) (1,494) (15,599) 4,971 (556) 4 (552) 4,419 (1,873) 2,546 Jan 30, 2015 56,223 (36,665) 19,558 (13,272) (1,494) (14,766) 4,792 (522) 6 (516) 4,276 (1,578) 2,698 Project #1 (Ratio Analysis) 1. Find the 2019 annual balance sheets and income statements for Home Depot and Lowe's (which were published on Feb-2020). For your convenience, all related financial statements are posted. 2. Construct the ratio table such as Table 4-7 on p.106. (You may exclude the following ratios: Market value added, Market to book ratio, EVA, Payout ratio, and Sustainable growth.) 3. Upload your file to the Canvas with five worksheets of which each worksheet designates the ratio table, balance sheet and income statement of each company, Home Depot Inc. Consolidated Balance Sheet: Assets US$ in millions Assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Operating lease right-of-use assets Goodwill Other assets Total fixed assets Total assets Liabilities: Payables and accrued expenses Current debt and capital obligations Current deferred liabilities Current liablities Other current liabilities Total current liabilities Long term debt and capital obligations Non current deferred liabilities Other non current liabilities Total non current liabilties Total liabilities Stockholder's Equity: Capital stock Additional paid in capital Retained earnings Treasury stock Gains losses not affecting Total stockholder's equity $ $ $ $ $ $ 31-Jan-20 2,133 $ 2,106 14,531 1,040 19,810 22,770 5,595 2,254 807 31,426 51,236 $ 12,618 $ 3,641 2,116 18,375 5,453 23,828 33,736 706 1,535 35,977 54,352 $ 89 $ 11,001 51,729 (65,196) (739) (3,116) $ 31-Jan-19 1,778 1,936 13,925 890 18,529 22,375 2,252 847 25,474 44,003 12,539 2,395 1,782 16,716 5,060 21,776 26,807 491 1,867 29,165 45,881 89 10,578 46, 423 (58,196) (772) (1,878) Home Depot inc. Consolidated Income Statement US$ in millions Feb 2, 2020 Net sales Cost of sales 110,225 (72,653) 37,572 Gross profit Selling, general and administrative (19,740) (1,989) Depreciation and amortization Impairment loss Operating expenses (21,729) Operating income 15,843 Interest and investment income 73 Interest expense (1,201) Other Interest and other, net (1,128) Earnings before provision for income taxes 14,715 14,556 13,698 12,491 Provision for income taxes (3,473) (3,435) (5,068) (4,534) 11,242 11,121 8,630 7,957 Net earnings Based on:10-K (filing date: 2020-03-25),10-K (filing date: 2019-03-28),10-K (filing date: 2018-03-22),10-K (filing date: 2017-03-23),10-K (filing date: 2016-03-24),10-K (filing date: 2015-03-26). 12 months ended: Feb 3, 2019 108,203 (71,043) 37,160 (19,513) (1,870) (247) (21,630) 15,530 93 (1,051) (16) (974) Jan 28, 2018 100,904 (66,548) 34,356 (17,864) (1,811) (19,675) 14,681 74 (1,057) (983) Jan 29, 2017 94,595 (62,282) 32,313 (17,132) (1,754) (18,886) 13,427 36 (972) (936) Jan 31, 2016 88,519 (58,254) 30,265 (16,801) (1,690) (18,491) 11,774 166 (919) (753) 11,021 (4,012) 7,009 Feb 1, 2015 83,176 (54,222) 28,954 (16,834) (1,651 (18,485) 10,469 337 (830) (493) 9,976 (3,631) 6,345 Lowe's Cos. Inc. Consolidated Balance Sheet: Assets US$ in millions Assets: Cash and cash equivalents Short-term investments Merchandise inventory, net Accounts receivable Deferred income taxes, net Other current assets Current assets Property, less accumulated depreciation Operating lease right-of-use assets Long-term investments Deferred income taxes, net Goodwill Other assets Noncurrent assets Total assets Liabilities: Payables and accrued expenses Current provisions Pension and other Current debt and captial Current deferred liabilities Other current liabilities Total current liabilities Long-term debt and capital Non current deferred liabilities Other non current liabilities Total long-term liabilities Total liabilities Stockholder's Equity: Capital stock Additional paid in capital Retained earnings Gains losses not affecting Total stockholder's equity 31-Jan-20 31-Jan-19 $ 716 $ 511 160 218 13,179 12,561 1,263 938 15,318 14,228 18,669 18,432 3,891 372 256 216 294 303 303 702 995 24,153 20,280 $ 39,471 $ 34,508 $ 8,557 $ 9,135 194 194 684 662 3,039 1,832 1,219 1,299 1,489 1,375 15,182 14,497 20,711 14,391 894 827 712 1,149 22,317 16,367 $ 37,499 $ 30,864 $ 381 $ 401 3,452 $ 1,727 (136) 1,972 $ (209) 3,644 Lowe's Cos. Inc. Consolidated Income Statement US$ in millions Net sales Cost of sales Gross margin Selling, general and administrative Depreciation and amortization Expenses Operating income Interest expense, net of amount capitalized (718) (652) Interest income 27 28 Interest, net (691) (624) Loss on extinguishment of debt Pre-tax earnings 3,394 5,489 5,201 Income tax provision 5,623 (1,342) 4,281 (2,042) (2,108) Net earnings (1,080) 2,314 3,447 3,093 Based on:10-K (filing date: 2020-03-23),10-K (filing date: 2019-04-02),10-K (filing date: 2018-04-02),10-K (filing date: 2017-04-04),10-K (filing date: 2016-03-29),10-K (filing date: 2015-03-31). 12 months ended: Jan 31, 2020 72,148 (49,205) 22,943 (15,367) (1,262) (16,629) 6,314 Feb 1, 2019 71,309 (48,401) 22,908 (17,413) (1,477) (18,890) 4,018 Feb 2, 2018 68,619 (45,210) 23,409 (15,376) (1,447) (16,823) 6,586 (649) 16 (633) (464) Feb 3, 2017 65,017 (42,553) 22,464 (15,129) (1,489) (16,618) 5,846 (657) 12 (645) Jan 29, 2016 59,074 (38,504) 20,570 (14,105) (1,494) (15,599) 4,971 (556) 4 (552) 4,419 (1,873) 2,546 Jan 30, 2015 56,223 (36,665) 19,558 (13,272) (1,494) (14,766) 4,792 (522) 6 (516) 4,276 (1,578) 2,698