The companies to be compared and analyzed are Home Depot & Lowes. Find the websites on the internet for the two companies and locate their latest annual reports. This part of the project is to help students become familiar with locating financial information for a given company. Companies websites change routinely as well as the data in their annual reports, the location of specific data varies for each company as well. Their annual reports may be under Investor Information, Financial Information, or a similar topic.

Part I-Ratio Calculation:

We will analyze Home Depot & Lowes by calculating 4 ratios: Current Ratio; Profit Margin; Return on Assets and Debt to Equity. Templates for calculating and presenting the information are at the following link: HD - Lowes- Ratio Analysis

Use the Industry comparison information at the top of page 215 for current ratio) in the text to make your assessment of Strong, Weak or Neutral.

Part II- Summary:

Briefly discuss whether or not Home Depot & Lowes can pay their debts (Liquidity), whether or not each are Profitable (Profitability or Performance), and finally whether each will likely continue to operate (Long Term Solvency). Explain which company would you invest in and why (you must choose one of the two). Use the format at the following link: Financial Analysis Project- Summary week 3