The assignment is to prepare a Ratio Analysis which are useful in understanding a Company. Ratio Analysis is used in conjunction with the other types of analysis discussed in this module. The ratios include four categories: Liquidity, Solvency, Profitability and Market Prospects.

Current Ratio and Acid Test answers are rounded to two decimals.

Use percentages (with two decimal places) for Debt Ratio, Equity Ratio, Debt to Equity Ratio and Profit Margin answers.

Net income is called Net earnings on Consolidated Statement of Earnings report.

Use Basic earnings per common share for Earnings per share.

You will need to do an online search for market price per common share. The market price is the price the stock was selling for on report year end dates. Stock symbol is LOW

Submit completed Financial Statement Ratios for Lowe's Companies, Inc.

Lowes Companies Inc
Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Jan. 28, 2022	Jan. 29, 2021	Jan. 31, 2020
Cash flows from operating activities:
Net earnings	$ 8,442	$ 5,835	$ 4,281
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	1,882	1,594	1,410
Noncash lease expense	517	479	468
Deferred income taxes	135	(108)	177
Loss on property and other assets net	34	139	117
Loss on extinguishment of debt	0	1,060	0
Share-based payment expense	230	155	98
Changes in operating assets and liabilities:
Merchandise inventory net	(1,413)	(2,967)	(600)
Other operating assets	(23)	326	(364)
Accounts payable	466	3,211	(637)
Deferred revenue	413	512	(15)
Other operating liabilities	(570)	813	(639)
Net cash provided by operating activities	10,113	11,049	4,296
Cash flows from investing activities:
Purchases of investments	(3,065)	(3,094)	(743)
Proceeds from sale/maturity of investments	3,293	2,926	695
Capital expenditures	(1,853)	(1,791)	(1,484)
Proceeds from sale of property and other long-term assets	113	90	163
Other net	(134)	(25)	0
Net cash used in investing activities	(1,646)	(1,894)	(1,369)
Cash flows from financing activities:
Net change in commercial paper	0	(941)	220
Net proceeds from issuance of debt	4,972	7,929	3,972
Repayment of debt	(2,118)	(5,618)	(1,113)
Proceeds from issuance of common stock under share-based payment plans	132	152	118
Cash dividend payments	(1,984)	(1,704)	(1,618)
Repurchases of common stock	(13,012)	(4,971)	(4,313)
Other net	(6)	(38)	(1)
Net cash used in financing activities	(12,016)	(5,191)	(2,735)
Effect of exchange rate changes on cash	(8)	10	1
Net (decrease)/increase in cash and cash equivalents, including cash classified within current assets held for sale	(3,557)	3,974	193
Less: Net decrease in cash classified within current assets held for sale	0	0	12
Net (decrease)/increase in cash and cash equivalents	(3,557)	3,974	205
Cash and cash equivalents, beginning of year	4,690	716	511
Cash and cash equivalents, end of year	$ 1,133	$ 4,690	$ 716

Lowes worksheet Financial Statement Ratios

Worksheet Financial Statement Ratios
Lowe's Companies, Inc
Jan. 28, 2022 and Jan. 29, 2021
		Jan. 29, 2022	Jan. 29, 2021	Answer format:
Current Ratio	Current Assets / Current Liabilities			Round decimal to two places
	Current Assets
	Current Liabilities
Acid Test	(Cash + ST Investments + Current Receivables)/Current Liabilities			Round decimal to two places
	Cash
	ST Investments
	Trade Receivables
	Current Liabilities
Debt Ratio	Total Liabilities/Total Assets			Answer as percentage with two decimal places
	Total Liabilities
	Total Assets
Equity Ratio	Total Equity/Total Assets			Answer as percentage with two decimal places
	Total Equity
	Total Assets
Debt to Equity Ratio	Total Liabilities/Total Equity			Answer as percentage with two decimal places
	Total Liabilities
	Total Equity
Profit Margin	Net Income/Net Sales			Answer as percentage with two decimal places
	Net Income
	Net Sales
Earnings per Share (from the income statement)	Net Income/weighted average # of shares outstanding
Price-Earnings Ratio	Market price per common share/Earnings per share
Market price available online	Market price per common share			Provide date of your market price
	Earnings per share