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B E G H K N 0 P Q R S HOME DEPOT Balance Sheet Horizontal Analysis Vertical Analysis $ Millions $ Millions $ Millions $ Millions Increase or (Decrease)2018 over 2017 Percent of Total Assets 2018 2017 1016 2015 Dollars Percent 2018 2016 1,778.00 5 3,595.00 5 2,538.00 5 2,216.00 (1,817.00) -50.54% 4.046 8.07%% 5.9196 1,952.00 2,029.00 $ 1,890.00 (16.00) -0.82% 4.40% 4.38% 4.7296 13,925.00 5 12,748.00 5 12,549.00 5 11,809.00 1,177.00 9.23% 31.65% 28.63%% 29.219% 890.00 5 in u 608.00 5 569.00 252.00 39.50% 2.02%% 1.4296 18,529.00 5 18,933.00 5 17,724.00 5 16,484.00 (404.00) -2.13%% 42.11% 42.52% 41.259%! 22,375.00 5 22,075.00 5 21,914.00 $ 22,191.00 300.00 1.36%% 49.57% 51.00%% 2,093.00 5 2,102.00 -1.01% 5.129% 5.116 4.8796 847.00 5 1,246.00 5 1,235.00 5 1,196.00 32.029% 2.80% 2.8796 44,003.00 5 44,529.00 5 42,966.00 5 41,973.00 -1.18% 100.00% 100.00% 100.00%% 20 21 1,339.00 5 1,559.00 5 350.00 (220.00) -14.11%% 3.04% 3.50% 1.65%% 22 7,755.00 7,244.00 5 6,565.00 511.00 7.05%% 17.62% 16.27% 16.29% 23 1,506.00 1,640.00 5 1,484.00 1,515.00 (134.00) -8.17% 3.68%% 3.4561 24 520.00 5 508.00 5 476.00 136.00 26.15%% 1.49% 1.17% 25 1,782.00 $ 1,805.00 5 1,669.00 5 1,566.00 (23.00) -1.27%% 4.059% 26 11.00 5 54.00 S 25.00 34.00 (43.00) -79.63%% D.12% 0.06%! 27 1,056.00 5 1,202.00 5 542.00 $ 77.00 (146.00) -12.15% 2.40%% 2.70%% 1.26% 28 2,170.00 5 2,195.00 1,941.00 441.00 20.329% 5.116 29 16,716.00 5 16,194.00 5 14,133.00 5 12,524.00 522.00 3.2296 37.99%% 36.376 32.89% 30 31 5 26,807.00 5 24,267.00 $ 22,349.00 $ 20,789.00 2,540.00 10.47%% 60.92%% 54.50% 52.029% 491.00 5 296.00 5 379.00 51.00 11.59% 0.99% 0.69% 1,867.00 5 2,174.00 5 1,855.00 5 1,965.00 (307.00) -14.12%% 4.2496 4.889 4.329% 34 38,633.00 5 35,657.00 2,806.00 6.5196 104.27% 96.73% 89.9296 35 36 S 89.00 5 88.00 $ 88.00 0.20% 0.20% 0.20% 37 10,578.00 10,192.00 5 9,787.00 9,347.00 386.00 3.79% 24.04% 22.89% 22.7896 38 46,423.00 39,935.00 5 35,519.00 $ 30,973.00 6,488.00 16.25% 105.50% 89.68% 82.6796 39 (772.00) (867.00) $ (898.00) (206.00) 36.40% -1.75% -1.27%% -2.0296! 40 5 (58,196.00) (48,196.00) $ in in in in (40,194.00) $ (33,194.00) $ (10,000.00) 20.75% -132.25% -108.24% -93.55%; 41 $ (1,878.00) $ 4,333.00 6,316.00 S (3,332.00) 229.16%% 3.27% 10.08% 44,003.00 5 44,529.00 5 42,966.00 5 41,973.00 (526.00) -1.186 100.00% 100.00% 100.009% 43 4445 46 47 INCOME STATEMENT 48 49 Income Statement Horizontal Analysis Vertical Analysis 50 $ Millions $ Millions $ Millions Increase or (Decrease)2018 over 2017 Percent of Net Sales 51 2018 2017 2016 Dollars Percent 2018 2017 2017 52 Net Sales $ 108,203.00 $ 100,904.00 94,595.00 $ 7,299.00 7.23% 100.00% 100.00% 100.00% 53 Cost of sales UT 71,043.00 5 66,548.00 5 62,282.00 5 4,495.00 6.759% 65.66% 65.95% 65.84% 54 Gross Profit 37,160.00 5 34,356.00 S 32,313.00 5 2,804.00 8.16% 34.34% 34.05% 34.16% 55 Operating Expenses 56 Selling and admin 19,513.00 $ 17,864.00 $ 17,132.00 $ 1,649.00 9.23% 18.03%% 17.70%% 18.11% 57 Depreciation & amo $ 1,870.00 5 1,811.00 1,754.00 S 59.00 3.26% 1.73% 1.79% 1.85% 58 Impairment 5 247.00 5 247.00 0.00% 0.23% 0.00% 0.00% 59 Total Operating Expel$ 21,630.00 19,675.00 S 18,886.00 S 1,955.00 9.94% 19.99% 19.50%% 19.97% 60 Operating Income S 15,530.00 $ 14,681.00 S 13,427.00 5 849.00 5.78% 14.35% 14.55% 14.19% 61 Interest and other (income) expense: 62 Interest and investn 5 (93.00) $ (74.00) $ (36.00) $ (19.00) 25.68% -0.09% -0.07% -0.04% 63 Interest expense S 1,051.00 5 1,057.00 972.00 5 (6.00) -0.57% 0.97% 1.05% 1.03% 64 Other 16.00 16.00 0.009% 0.01%% 0.00% 0.00% 65 Interest and Other, r 5 974.00 983.00 936.00 (9.00) -0.92% 0.90% 0.97% 0.99% 66 Earning before provi $ 14,556.00 S 13,698.00 12,491.00 858.00 6.26% 13.45% 13.58%% 13.20% 67 Provision for Income $ 3,435.00 5,068.00 4,534.00 5 (1,633.00) -32.226 3.17% 5.029% 4.79%% 68 Net earnings S 11,121.00 5 8,630.00 S 7,957.00 S 2,491.00 28.86% 10.28% 8.559% 8.41% 69 70 71 72 Sheet1 +71 72 73 74 LOWES 75 76 Balance Sheet Horizontal Analysis Vertical Analysis 77 2018 2017 2016 2015 Increase or (Decrease)2018 over 2017 Percent of Total Assets 78 $Millions $Millions $Millions SMillions Dollars Percent 2018 2017 2016 79 80 5 511,000.00 5 588,000.00 5 558,000.00 5 405,000.00 (77,000.00) -13.10% 1.48%% 1.67% 1.629% 81 5 218,000.00 102,000.00 5 100,000.00 307,000.00 116,000.00 113.73% 0.63% 0.29% 0.29% 32 $12,561,000.00 5 11,393,000.00 $ 10,458,000.00 $ 9,458,000.00 1,168,000.00 10.25% 36.40% 32.28% 30.39% 83 5 938,000.00 689,000.00 S 884,000.00 391,000.00 249,000.00 36.14% 2.72%% 1.95% 2.57% 34 $14,228,000.00 12,772,000.00 5 12,000,000.00 5 10,561,000.00 1,456,000.00 11.40% 41.23%% 36.19%% 84.88% 85 86 $18,432,000.00 $ 19,721,000.00 $ 19,949,000.00 $ 19,577,000.00 (1,289,000.00) -6.5496 53.41% 55.88% 57.98% 87 $ 256,000.00 $ 408,000.00 $ 366,000.00 5 222,000.00 (152,000.00) 37.25% 0.74% 1.16% 1.06% 88 5 294,000.00 5 168,000.00 $ 222,000.00 5 241,000.00 126,000.00 75.00% 0.859% 0.489% 0.65% 89 5 303,000.00 5 1,307,000.00 $ 1,082,000.00 (1,004,000.00) -76.82%% 0.88%% 3.70% 3.14% 90 5 995,000.00 5 915,000.00 $ 789,000.00 $ 665,000.00 80,000.00 8.7496 2.8896 2.59% 2.29%% 91 $34,508,000.00 $ 35,291,000.00 $ 34,408,000.00 $ 31,266,000.00 (783,000.00) -2.229% 100.00% 100.00% 100.00% 92 93 94 95 $ 722,000.00 $ 1,137,000.00 $ 510,000.00 $ 43,000.00 (415,000.00) 36.50%% 2.09% 3.22% 1.48% 96 5 1,110,000.00 5 294,000.00 S 795,000.00 $ 1,061,000.00 816,000.00 277.55% 3.229% 0.83% 2.319% 97 5 8,279,000.00 5 6,590,000.00 $ 6,651,000.00 $ 5,633,000.00 1,689,000.00 25.63% 23.99%% 18.67%% 19.33% 98 5 662,000.00 5 747,000.00 5 790,000.00 5 820,000.00 (85,000.00) -11.38% 1.929% 2.129% 2.30% 99 5 1,299,000.00 5 1,378,000.00 $ 1,253,000.00 $ 1,078,000.00 (79,000.00) -5.73% 3.76% 3.90% 3.64% 100 $ 2,425,000.00 1,950,000.00 $ 1,975,000.00 5 1,857,000.00 475,000.00 24.36% 7.03%% 5.53% 5.74% 101 $14,497,000.00 5 12,096,000.00 $ 11,974,000.00 $ 10,492,000.00 2,401,000.00 19.85% 42.01%% 34.28% 34.80% 102 103 $14,391,000.00 $ 15,564,000.00 $ 14,394,000.00 $ 11,545,000.00 (1,173,000.00) -7.54% 41.70% 44.10% 41.83% 104 5 827,000.00 803,000.00 763,000.00 729,000.00 24,000.00 2.99% 2.40%% 2.28% 2.229% 105 $ 1,149,000.00 955,000.00 843,000.00 846,000.00 194,000.00 20.31%% 3.33% 2.71% 2.45% 106 530,864,000.00 29,418,000.00 $ 27,974,000.00 $ 23,612,000.00 1,446,000.00 4.929 89.44% 83.36% 81.30%% 107 108 5 401,000.00 5 in un in 415,000.00 $ 433,000.00 $ 455,000.00 (14,000.00) -3.37%% 1.16% 1.18%% 1.26% 109 5 22,000.00 5 (22,000.00) -100.00% 0.00%% 0.069% 0.00% 110 $ 3,452,000.00 5 5,425,000.00 $ 6,241,000.00 $ 7,593,000.00 (1,973,000.00) 36.37% 10.00%% 15.37% 18.14% 111 5 (209,000.00) $ 11,000.00 $ (240,000.00) 5 (394,000.00) (220,000.00 -2000.00% -0.61% 0.03% 0.70% 112 5 3,644,000.00 5 5,873,000.00 5 6,434,000.00 5 7,654,000.00 (2,229,000.00) 37.95% 10.56% 16.64% 18.70% 113 $34,508,000.00 5 35,291,000.00 $ 34,408,000.00 $ 31,266,000.00 (783,000.00) -2.229% 100.00% 100.00% 100.00%% 174 115B C E F G H I J K L M N 116 117 118 Income Statement 119 120 Horizontal Analysis Vertical Analysis 121 2018 2017 2016 Increase or (Decrease)2018 over 2017 Percent of Net Sales 122 $Millions $Millions $Millions Dollars Percent 2018 2017 2016 123 Net Sales 5 71,309,000.00 $ 68,619,000.00 $ 65,017,000.00 $ 2,690,000.00 3.929% 100.00% 100.00% 100.00% 124 Cost of sales $ 48,401,000.00 $ 45,210,000.00 $ 42,553,000.00 3,191,000.00 7.06% 67.88% 65.89% 65.45% 125 Gross Profit $ 22,908,000.00 5 23,409,000.00 $ 22,464,000.00 5 (501,000.00) -2.14% 32.12% 34.11%% 34.55% 126 Operating Expenses 127 Selling and admin $ 17,413,000.00 |$ 15,376,000.00 $ 15,129,000.00 $ 2,037,000.00 13.25% 24.429% 22.419% 23.27% 128 Depreciation & amo $ 1,477,000.00 $ 1,447,000.00 $ 1,489,000.00 30,000.00 2.07%% 2.0796 2.11%% 2.29% 129 Operating Income (L $ 4,018,000.00 $ 6,586,000.00 $ 5,846,000.00 in in in in (2,568,000.00) -38.99% 5.63% 9.60% 8.99% 130 Interest income (exp $ (624,000.00) $ (633,000.00) 5 (645,000.00) $ 9,000.00 -1.429% -0.88% 0.92% -0.99% 131 Loss on extinguis (464,000.00) 5 464,000.00 100.00% 0.00%% 0.68% 0.00% 132 Pre-tax earnings (Lo: $ 3,394,000.00 $ 5,489,000.00 $ 5,201,000.00 (2,095,000.00) -38.17% 4.76%% 8.00% 8.00% 133 Provision for Income $ 1,080,000.00 $ 2,042,000.00 $ 2,108,000.00 in in (962,000.00) -47.11% 1.516 2.989% 3.24% 134 Net earnings $ 2,314,000.00 $ 3,447,000.00 5 3,093,000.00 (1,133,000.00) -32.87% 3.25% 5.02% 4.76% 135 136 137 138 139 140 141 142 143 1dd17 PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing C29 X V A B C D E F G H (3) Prepare ratio analyses (for 2018, 2017, and 2016) for both companies. You should include the following ratios in your computations: w Home Depot LOWES 2018 2017 2016 2018 2017 2016 5 Profitability ratios 6 Gross Profit margin 34.34% 34.05% 34.16% 32.12% 34.11% 34.55% 7 Profit margin 10.28% 8.55% 8.41% 3.25% 5.02% 4.76% 8 Return on assets 26.94% 21.25% 21.02% 5.41% 8.75% 8.25% 9 Return on equity -5246% 298% 149.44% 48.63% 56.02% 43.91% 10 Productivity 11 Inventory Turnover 5.33 5.26 5.11 4.04 1.14 4.27 12 days inventory outstanding 68.52 69.37 71.37 90.32 88.21 85.42 13 PPE Turnover 4.87 4.59 4.29 3.74 3.46 3.29 14 Asset Turnover 2.44 2.31 2.23 5.28 5.54 5.76 15 Solvency 16 Debt-to-equity -24.43 29.63 8.92 8.47 5.01 4.35 17 Times interest earned 15.94 14.93 14.35 -6.44 -10.40 -9.06 18 Return on Financial leverage 52.73 2.77 1.28 0.43 0.47 0.36 19 Liquidity 20 Current Ratio 1.11 1.17 1.25 2.38 2.92 2.87 21 Quick Ratio 0.22 0.34 0.32 0.05 0.06 0.05 22 Working capital -1878.00 1454.00 4333.00 3644000.00 5873000.00 6434000.00 23 24 25 26 27 28 29 30 31 32 33