Ratios already calculated, just answer questions please! Financial statements included after questions.

Home Depot:

Calculate for the last 2 years (2016 and 2015):

a-d.

HOME DEPOT	2017	2016
Net Profit Margin	8.41%	7.92%
Current Ratio	1.25	1.32
Total Asset Turnover	2.20	2.11
Total Assets/ Common Equity	9.92	6.65
ROA	18.52%	16.70%
ROE	183.64%	110.97%

e. What are its two largest sources and uses of cash in the latest year?

f. How does the company appear to be performing?

g. What would you investigate further concerning its financial performance?

LOWES:

1.Calculate for the last 2 years:

a-d.

LOWES	2017	2016
Net Profit Margin	4.76%	4.31%
Current Ratio	1.00	1.01
Total Asset Turnover	1.89	1.89
Total Assets/ Common Equity	5.35	4.08
ROA	8.99%	8.14%
ROE	48.07%	33.26%

e.What are its two largest sources and uses of cash in the latest year?

f. How does the company appear to be performing?

g. What would you investigate further concerning its financial performance?

f.Compare the performance of Lowes and Home Depot.

LOWES

Income Statement

All numbers in thousands

Revenue	2/3/2017	1/29/2016	1/30/2015
Total Revenue	65,017,000	59,074,000	56,223,000
Cost of Revenue	42,553,000	38,504,000	36,665,000
Gross Profit	22,464,000	20,570,000	19,558,000
Operating Expenses
Research Development	-	-	-
Selling General and Administrative	15,129,000	14,105,000	13,272,000
Non Recurring	-	-	-
Others	1,489,000	1,494,000	1,494,000
Total Operating Expenses	-	-	-
Operating Income or Loss	5,846,000	4,971,000	4,792,000
Income from Continuing Operations
Total Other Income/Expenses Net	-	-	-
Earnings Before Interest and Taxes	5,201,000	4,419,000	4,276,000
Interest Expense	-	-	-
Income Before Tax	5,201,000	4,419,000	4,276,000
Income Tax Expense	2,108,000	1,873,000	1,578,000
Minority Interest	-	-	-
Net Income From Continuing Ops	3,093,000	2,546,000	2,698,000
Non-recurring Events
Discontinued Operations	-	-	-
Extraordinary Items	-	-	-
Effect Of Accounting Changes	-	-	-
Other Items	-	-	-
Net Income
Net Income	3,093,000	2,546,000	2,698,000
Preferred Stock And Other Adjustments	-	-	-
Net Income Applicable To Common Shares	3,093,000	2,546,000	2,698,000

Balance Sheet

All numbers in thousands

Period Ending	2/3/2017	1/29/2016	1/30/2015
Current Assets
Cash And Cash Equivalents	558,000	405,000	466,000
Short Term Investments	100,000	307,000	125,000
Net Receivables	-	-	-
Inventory	10,458,000	9,458,000	8,911,000
Other Current Assets	884,000	391,000	349,000
Total Current Assets	12,000,000	10,561,000	9,851,000
Long Term Investments	366,000	222,000	354,000
Property Plant and Equipment	19,949,000	19,577,000	20,034,000
Goodwill	1,082,000	154,000	-
Intangible Assets	-	-	-
Accumulated Amortization	-	-	-
Other Assets	789,000	511,000	1,349,000
Deferred Long Term Asset Charges	222,000	241,000	133,000
Total Assets	34,408,000	31,266,000	31,721,000
Current Liabilities
Accounts Payable	7,441,000	6,453,000	5,897,000
Short/Current Long Term Debt	1,305,000	1,104,000	552,000
Other Current Liabilities	3,228,000	2,935,000	2,899,000
Total Current Liabilities	11,974,000	10,492,000	9,348,000
Long Term Debt	14,394,000	11,545,000	10,806,000
Other Liabilities	843,000	846,000	869,000
Deferred Long Term Liability Charges	763,000	729,000	730,000
Minority Interest	-	-	-
Negative Goodwill	-	-	-
Total Liabilities	27,974,000	23,612,000	21,753,000
Stockholders' Equity
Misc. Stocks Options Warrants	-	-	-
Redeemable Preferred Stock	-	-	-
Preferred Stock	-	-	-
Common Stock	433,000	455,000	480,000
Retained Earnings	6,241,000	7,593,000	9,591,000
Treasury Stock	-	-	-
Capital Surplus	-	-	-
Other Stockholder Equity	-240,000	-394,000	-103,000
Total Stockholder Equity	6,434,000	7,654,000	9,968,000
Net Tangible Assets	5,352,000	7,500,000	9,968,000

Cash Flow

All numbers in thousands

Period Ending	2/3/2017	1/29/2016	1/30/2015
Net Income	3,093,000	2,546,000	2,698,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation	1,590,000	1,587,000	1,586,000
Adjustments To Net Income	563,000	673,000	77,000
Changes In Accounts Receivables	-	-	-
Changes In Liabilities	732,000	594,000	315,000
Changes In Inventories	-178,000	-582,000	170,000
Changes In Other Operating Activities	-183,000	-34,000	83,000
Total Cash Flow From Operating Activities	5,617,000	4,784,000	4,929,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures	-1,167,000	-1,197,000	-880,000
Investments	138,000	-175,000	-256,000
Other Cash flows from Investing Activities	-2,332,000	29,000	48,000
Total Cash Flows From Investing Activities	-3,361,000	-1,343,000	-1,088,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid	-1,121,000	-957,000	-822,000
Sale Purchase of Stock	-3,456,000	-3,800,000	-3,768,000
Net Borrowings	2,560,000	1,209,000	805,000
Other Cash Flows from Financing Activities	-75,000	55,000	24,000
Total Cash Flows From Financing Activities	-2,092,000	-3,493,000	-3,761,000
Effect Of Exchange Rate Changes	-11,000	-9,000	-5,000
Change In Cash and Cash Equivalents	153,000	-61,000	75,000

THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Fiscal Year Ended") January 31, February 1, $ 94,595 $ 88,519 $ 83,176 54,787 28,389 January 29, 2017 amounts in millions, except per share data NET SALES Cost of Sales GROSS PROFIT 2016 2015 62,282 58,254 32,313 30,265 Operating Expenses 17,132 1,754 18,886 13,427 16,801 1,690 18,491 11,774 16,280 1,640 17,920 10,469 Selling, General and Administrative Depreciation and Amortization Total Operating Expenses OPERATING INCOME Interest and Other (Income) Expense: Interest and Investment Income Interest Expense 972 936 (166) 919 753 (337) 830 493 Interest and Other, net EARNINGS BEFORE PROVISION FOR INCOME TAXES Provision for Income Taxes NET EARNINGS 9,976 3,631 $ 7,957 7,009 6,345 12,491 4,534 11,021 4,012 1,229 Weighted Average Common Shares BASIC EARNINGS PER SHARIE 1,338 $ 6.47 5.49 4.74 1,277 Diluted Weighted Average Common Shares DILUTED EARNINGS PER SHARE 1,234 1,283 $ 6.45 5.46$4.71 1,346 (I) Fiscal years ended January 29, 2017, January 31, 2016 and February 1, 2015 include 52 weeks. See accompanying Notes to Consolidated Financial Statements