Question
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
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 | ||||
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Horngrens Accounting
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
12th edition
978-0134674681
