Home Depot and Lowes Financial Analysis

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Part 1 – Data Analysis

Prepare Common Sized Financial Statements and perform a vertical analysis and a horizontal analysis (trend) using the formats provided at the following link: Home Depot – Lowe’s Common Sized and Trend.

	The Home Depot, Inc. (HD)			Lowes
Income Statement
All numbers in thousands	03/02/2019	28/01/2018	29/01/2017	01/02/2019	02/02/2018	03/02/2017
Total Revenue	108,203,000	100,904,000	94,595,000	71,309,000	68,619,000	65,017,000
Cost of Revenue	71,043,000	66,548,000	62,282,000	48,394,000	46,185,000	43,343,000
Gross Profit	37,160,000	34,356,000	32,313,000	22,915,000	22,434,000	21,674,000
Operating Expenses
Research Development	–	3,714,000	–	–	–	–
Selling General and Administrative	19,513,000	17,694,000	17,132,000	15,509,000	14,425,000	14,328,000
Non Recurring	–	–	–	–	–	–
Others	–	–	–	–	–	–
Total Operating Expenses	92,426,000	86,053,000	81,168,000	65,227,000	62,014,000	59,124,000
Operating Income or Loss	15,777,000	14,851,000	13,427,000	6,082,000	6,605,000	5,893,000
Income from Continuing Operations
Total Other Income/Expenses Net	(1,221,000)	(1,153,000)	(936,000)	-2,688,000	-1,116,000	-692,000
Earnings Before Interest and Taxes	15,777,000	14,851,000	13,427,000	6,082,000	6,605,000	5,893,000
Interest Expense	(1,051,000)	(1,057,000)	(972,000)	-652,000	-652,000	-657,000
Income Before Tax	14,556,000	13,698,000	12,491,000	3,394,000	5,489,000	5,201,000
Income Tax Expense	3,435,000	5,068,000	4,534,000	1,080,000	2,042,000	2,108,000
Minority Interest	–	–	–	–	–	–
Net Income From Continuing Ops	11,121,000	8,630,000	7,957,000	2,314,000	3,447,000	3,093,000
Non-recurring Events
Discontinued Operations	–	–	–	–	–	–
Extraordinary Items	–	–	–	–	–	–
Effect Of Accounting Changes	–	–	–	–	–	–
Other Items	–	–	–	–	–	–
Net Income
Net Income	11,121,000	8,630,000	7,957,000	2,314,000	3,447,000	3,093,000
Preferred Stock And Other Adjustments	–	–	–	–	–	–
Net Income Applicable To Common Shares	11,121,000	8,630,000	7,957,000	2,307,000	3,436,000	3,062,000

Balance Sheet
All numbers in thousands
Period Ending	03/02/2019	28/01/2018	29/01/2017	01/02/2019	02/02/2018	03/02/2017
Current Assets
Cash And Cash Equivalents	1,778,000	3,595,000	2,538,000	511,000	588,000	558,000
Short Term Investments	–	–	–	218,000	102,000	100,000
Net Receivables	1,936,000	1,952,000	2,029,000	–	–	–
Inventory	13,925,000	12,748,000	12,549,000	12,561,000	11,393,000	10,458,000
Other Current Assets	890,000	638,000	608,000	938,000	689,000	884,000
Total Current Assets	18,529,000	18,933,000	17,724,000	14,228,000	12,772,000	12,000,000
Long Term Investments	–	–	–	–	27,000	12,000
Property, plant and equipment	22,375,000	22,075,000	21,914,000	18,432,000	19,721,000	19,949,000
Goodwill	2,252,000	2,275,000	2,093,000	303,000	1,307,000	1,082,000
Intangible Assets	–	563,000	–	569,000	0	–
Other Assets	847,000	1,246,000	1,235,000	976,000	1,464,000	1,365,000
Deferred Long Term Asset Charges	121,000	119,000	91,000	294,000	168,000	222,000
Total Assets	44,003,000	44,529,000	42,966,000	34,508,000	35,291,000	34,408,000
Current Liabilities
Accounts Payable	7,755,000	7,244,000	7,000,000	8,279,000	6,590,000	6,651,000
Short/Current Long Term Debt	999,000	1,202,000	542,000	1,045,000	294,000	795,000
Other Current Liabilities	1,793,000	1,859,000	1,694,000	2,875,000	2,544,000	2,389,000
Total Current Liabilities	16,716,000	16,194,000	14,133,000	14,497,000	12,096,000	11,974,000
Long Term Debt	25,815,000	24,267,000	22,349,000	13,682,000	15,564,000	14,394,000
Other Liabilities	2,358,000	2,614,000	2,151,000	1,976,000	1,758,000	1,606,000
Deferred Long Term Liability Charges	–	–	–	–	–	18,000
Total Liabilities	45,881,000	43,075,000	38,633,000	30,864,000	29,418,000	27,974,000
Stockholders’ Equity
Misc. Stocks Options Warrants	–	–	–	–	–	–
Redeemable Preferred Stock	–	–	–	–	–	–
Preferred Stock	–	–	–	–	–	–
Common Stock	89,000	89,000	88,000	401,000	415,000	433,000
Retained Earnings	46,423,000	39,935,000	35,519,000	3,452,000	5,425,000	6,241,000
Treasury Stock	(58,968,000)	(48,762,000)	(41,061,000)	-209,000	11,000	-240,000
Capital Surplus	10,578,000	10,192,000	9,787,000	–	22,000	–
Other Stockholder Equity	(772,000)	(566,000)	(867,000)	-209,000	11,000	-240,000
Total stockholders’ equity	(1,878,000)	1,454,000	4,333,000	3,644,000	5,873,000	6,434,000
Net Tangible Assets	(4,130,000)	(821,000)	2,240,000	2,772,000	4,566,000	5,352,000

Cash Flow
All numbers in thousands
Period Ending	03/02/2019	28/01/2018	29/01/2017	01/02/2019	02/02/2018	03/02/2017
Net Income	11,121,000	8,630,000	7,957,000	2,314,000	3,447,000	3,093,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation	2,152,000	2,062,000	1,973,000	1,454,000	1,540,000	1,590,000
Adjustments To Net Income	426,000	693,000	271,000	1,667,000	574,000	563,000
Changes In Accounts Receivables	33,000	139,000	(138,000)	–	–	–
Changes In Liabilities	849,000	572,000	428,000	1,720,000	-92,000	653,000
Changes In Inventories	(1,244,000)	(84,000)	(769,000)	-1,289,000	-791,000	-178,000
Changes In Other Operating Activities	(257,000)	(10,000)	(48,000)	327,000	387,000	-104,000
Total Cash Flow From Operating Activities	13,038,000	12,031,000	9,783,000	6,193,000	5,065,000	5,617,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditure	(2,442,000)	(1,897,000)	(1,621,000)	-1,174,000	-1,123,000	-1,167,000
Investments	–	–	–	20,000	133,000	62,000
Other Cash flows from Investing Activities	14,000	(4,000)	(4,000)	-2,000	13,000	63,000
Total Cash Flows From Investing Activities	(2,416,000)	(2,228,000)	(1,583,000)	-1,080,000	-1,441,000	-3,361,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid	(4,704,000)	(4,212,000)	(3,404,000)	-1,455,000	-1,288,000	-1,121,000
Sale Purchase of Stock	–	–	–	–	–	–
Net Borrowings	2,037,000	3,298,000	2,274,000	-741,000	744,000	2,560,000
Other Cash Flows from Financing Activities	(26,000)	(211,000)	(78,000)	-5,000	-10,000	-75,000
Total Cash Flows From Financing Activities	(12,420,000)	(8,870,000)	(7,870,000)	-5,124,000	-3,607,000	-2,092,000
Effect Of Exchange Rate Changes	(19,000)	124,000	(8,000)	-12,000	13,000	-11,000
Change In Cash and Cash Equivalents	(1,817,000)	1,057,000	322,000	-77,000	30,000	153,000

Home Depot, Inc.
Common-Size Income Statements
For Years_______________
		% of Net Sales as a Base
	03/02/2019	%	28/01/2018	%


Net revenue	108,203,000	100%	100,904,000	100%
Cost of Revenue	71,043,000	66%	66,548,000	66%
Gross Profit	37,160,000	34%	34,356,000	34%
Operating Expenses
Research Development	–	0%	–	0%
Selling General and Administrative	19,513,000	18%	17,694,000	18%
Non Recurring	–	0%	–	0%
Others	–	0%	–	0%
Total Operating Expenses	92,426,000	85%	86,053,000	85%
Operating Income or Loss	15,777,000	15%	14851000	15%
Income from Continuing Operations	–	0%		0%
Total Other Income/Expenses Net	(1,221,000)	-1%	(1,153,000)	-1%
Earnings Before Interest and Taxes	15,777,000	15%	14,851,000	15%
Interest Expense	(1,051,000)	-1%	(1,057,000)	-1%
Income Before Tax	14,556,000	13%	13,698,000	14%
Income Tax Expense	3,435,000	3%	5,068,000	5%
Minority Interest	–	0%	–	0%
Net Income From Continuing Ops	11,121,000	10%	8,630,000	9%
Non-recurring Events		0%	–	0%
Discontinued Operations	–	0%	–	0%
Extraordinary Items	–	0%	–	0%
Effect Of Accounting Changes	–	0%	–	0%
Net Income	11,121,000	10%	8,630,000	9%



Home Depot, Inc.
Common-Size Balance Sheets
For the years ______________
		% of Category as a Base ( Total Assets; Total Liabilities & Shareholders’ Equity)
		( $ In thousands)
	$	%	$	%
Assets
Current Assets
Cash And Cash Equivalents	$ 1,778,000	4.0%	$ 3,595,000	8.1%
Short Term Investments	–	0.0%	–	0.0%
Net Receivables	1,936,000	4.4%	1,952,000	4.4%
Inventory	13,925,000	31.6%	12,748,000	28.6%
Other Current Assets	890,000	2.0%	638,000	1.4%

Total Current Assets	18,529,000	42.1%	18,933,000	42.5%

Long Term Investments	0	0.0%	0	0.0%
Property, plant and equipment	22375000	50.8%	22075000	49.6%
Goodwill	2252000	5.1%	2275000	5.1%
Intangible Assets	–	0.0%	563,000	1.3%
Accumulated Amortization	–	0.0%	–	0.0%
Other Assets	847,000	1.9%	1,246,000	2.8%
Deferred Long Term Asset Charges	121,000	0.3%	119,000	0.3%

Total Assets	44,003,000	100.0%	44,529,000	100.0%

Current Liabilities
Accounts Payable	7,755,000	17.6%	7,244,000	16.3%
Short/Current Long Term Debt	999000	2.3%	1202000	2.7%
Other Current Liabilities	1793000	4.1%	1859000	4.2%
				0.0%
Total Current Liabilities	16716000	38.0%	16194000	36.4%

Long Term Debt	25,815,000	58.7%	24,267,000	54.5%
Other Liabilities	2358000	5.4%	2614000	5.9%
Deferred Long Term Liability Charges	–	0.0%	–	0.0%
Minority Interest	–	0.0%	–	0.0%
Negative Goodwill	–	0.0%	–	0.0%

Total Liabilities	45,881,000	104.3%	43,075,000	96.7%

Stockholders’ Equity				0.0%
Misc. Stocks Options Warrants	0	0.0%	0	0.0%
Redeemable Preferred Stock	0	0.0%	0	0.0%
Preferred Stock	0	0.0%	0	0.0%
Common Stock	$ 89,000	0.2%	$ 89,000	0.2%
Retained Earnings	46,423,000	105.5%	39,935,000	89.7%
Treasury Stock	(58,968,000)	-134.0%	(48,762,000)	-109.5%
Capital Surplus	10,578,000	24.0%	10,192,000	22.9%
Other Stockholder Equity	(772,000)	-1.8%	(566,000)	-1.3%

Total stockholders’ equity	(1,878,000)	-4.3%	1,454,000	3.3%
Total Liabilities and Stockholders’ Equity	44,003,000	100.0%	44,529,000	100.0%


Home Depot, Inc.
Trend Analysis
For the years _____________

		03/02/2019		28/01/2018	03/02/2017
	%	$	%	$	$
Net Sales	7.23%	7,299,000	6.67%	6,309,000	94,595,000
Cost of Goods Sold	6.75%	4,495,000	6.85%	4,266,000	62,282,000
Gross Profit	8.16%	2,804,000	6.32%	2,043,000	32,313,000
Total Expenses	7.41%	6,373,000	4.76%	3,913,000	82,140,000
Net Income	22.40%	2,491,000	8.46%	673,000	7,957,000

Lowe’s Companies, Inc.
Common-Size Statements
For the Years _____________________


% of net sales as a base

Net Sales	$ 71,309,000	100.00%	$ 68,619,000	100.00%
Cost of Sales	$ 48,394,000	67.87%	$ 46,185,000	67.31%
Gross Margin	$ 22,915,000	32.13%	$ 22,434,000	32.69%

Selling, general and adminstrative	$ 15,509,000	21.75%	$ 14,425,000	21.02%
Store opening costs	$ –	0.00%	$ –	0.00%
Depreciation	$ 1,454,000	2.04%	$ 1,540,000	2.24%
Interest	$ 652,000	0.91%	$ 652,000	0.95%
Total Expenses	$ 65,879,000	92.39%	$ 62,666,000	91.32%
Pre-tax earning	$ 3,394,000	4.76%	$ 5,489,000	8.00%
Income tax provisions	$ 3,394,000	4.76%	$ 2,042,000	2.98%
Net Earnings	$ 1,080,000	1.51%	$ 3,447,000	5.02%
% of Major Category- ie Total assets or Total
Liabilities and Shareholders Equity as a base
Assets
Cash And Cash Equivalents	$ 511,000	1.48%	$ 588,000	1.67%
Short Term Investments	$ 218,000	0.63%	$ 102,000	0.29%
Net Receivables	$ –	0.00%	$ –	0.00%
Inventory	$ 12,561,000	36.40%	$ 11,393,000	32.28%
Other Current Assets	$ 938,000	2.72%	$ 689,000	1.95%
Total Current assets	$ 14,228,000	41.23%	$ 12,772,000	36.19%
Property, less accumulated dept.	$ 18,432,000	53.41%	$ 19,721,000	55.88%
Long-term investments	$ –	0.00%	$ 27,000	0.08%
Other assets	$ 2,142,000	6.21%	$ 2,939,000	8.33%
Total Assets	$ 34,508,000	100.00%	$ 35,291,000	100.00%

Current Liabilities
Accounts Payable	$ 8,279,000	23.99%	$ 6,590,000	18.67%
Short/Current Long Term Debt	$ 1,045,000	3.03%	$ 294,000	0.83%
Other Current Liabilities	$ 2,875,000	8.33%	$ 2,544,000	7.21%
Total Current liabilities	$ 14,497,000	42.01%	$ 12,096,000	34.28%
Long Term Debt	$ 13,682,000	39.65%	$ 15,564,000	44.10%
Other Liabilities	$ 1,976,000	5.73%	$ 1,758,000	4.98%
Deferred Long Term Liability Charges	$ –	0.00%	$ –	0.00%
Total Liabilities	$ 30,864,000	89.44%	$ 29,418,000	83.36%
commitments and contingencies	$ –	0.00%	$ –	0.00%

Shareholders Equity
Preferred stock – $5 par value, none issued	$ –	0.00%	$ –	0.00%
Common Stock	$ 401,000	1.16%	$ 415,000	1.18%
Retained Earnings	$ 3,452,000	10.00%	$ 5,425,000	15.37%
Treasury Stock	$ (209,000)	-0.61%	$ 11,000	0.03%
Capital Surplus	$ –	0.00%	$ 22,000	0.06%
Other Stockholder Equity	$ (209,000)	-0.61%	$ 11,000	0.03%
Total stockholders’ equity	$ 3,644,000	10.56%	$ 5,873,000	16.64%
Total Liabilities & shareholders equity	$ 34,508,000	100.00%	$ 35,291,000	100.00%



Lowes’
Trend Analysis
For the years ______________

		03/02/2019		28/01/2018	03/02/2017
	%	$	%	$	$
Net Sales	3.92%	2,690,000	5.54%	3,602,000	65,017,000
Cost of Sales	4.78%	2,209,000	6.56%	2,842,000	43,343,000
Gross Profit	2.14%	481,000	3.51%	760,000	21,674,000
Total Expenses	5.13%	3,213,000	4.83%	2,885,000	59,781,000
Net Earnings	-2.22%	(783,000)	11.45%	354,000	3,093,000

Ratio Calculations

Home Depot
		Calculation	Current Year	Calculation	Previous Year	Improvement
Ratio	Formula	2019	Rating (S,N,W)	2018	Rating (S,N,W)	Yes or No

Liquidity

Current Ratio	Current Assets/Current Liabilities	1.11	2.74	1.17	2.74
Quick Ratio or Acid Test	Cash + Marketable Securities + Receivables/Current Liabilities	0.22		0.34
Receivable Turnover	Net Sales/Average Accounts Receivable	55.89		51.69
Average Days’ Sales Uncollected	365 Days/Receivable Turnover	6.53		7.06
Inventory Turnover	COGS/Average Inventory	5.33		5.26

Profitability

Profit Margin	Net Income/Net Sales	10.28%	5.70%	8.55%	5.70%
Asset Turnover	Net Sales/Average Total Assets	2.44	2.03	2.31	2.03
Return on Assets	Net Income/Average Total Assets	25.12%	11.60%	19.73%	11.60%
Return on Equity	Net Income/Average Shareholder’s Equity	-5245.75%	18.00%	56.91%	18.00%

Long-Term Solvency

Debt to Equity Ratio	Total Liabilities/Shareholders Equity	-2443.08%	61.40%	2962.52%		61.40%
Interest Coverage Ratio	EBIT/Interest Expense	15.01		14.05

Earnings Information

Basic Earnings Per Share	No Computations necessary-Available in Compnay’s Annual Reports	9.78		7.33
Dividends Per Share	No Computations necessary-Available in Compnay’s Annual Reports	4.12		3.56






Lowes
		Calculation	Current Year	Calculation	Previous Year	Improvement
Ratio	Formula	2019	Rating (S,N,W)	2018	Rating (S,N,W)	Yes or No

Liquidity

Current Ratio	Current Assets/Current Liabilities	0.98	2.74	1.06	2.74
Quick Ratio or Acid Test	Cash + Marketable Securities + Receivables/Current Liabilities	0.05		0.06
Receivable Turnover	Net Sales/Average Accounts Receivable	N/A		N/A
Average Days’ Sales Uncollected	365 Days/Receivable Turnover	N/A		N/A
Inventory Turnover	COGS/Average Inventory	4.04		4.23

Profitability

Profit Margin	Net Income/Net Sales	3.25%	5.70%	5.02%	5.70%
Asset Turnover	Net Sales/Average Total Assets	2.04	2.03	1.97	2.03
Return on Assets	Net Income/Average Total Assets	6.63%	11.60%	9.89%	11.60%
Return on Equity	Net Income/Average Shareholder’s Equity	48.63%	18.00%	56.02%	18.00%

Long-Term Solvency

Debt to Equity Ratio	Total Liabilities/Shareholders Equity	846.98%	61.40%	500.90%	61.40%
Interest Coverage Ratio	EBIT/Interest Expense	9.33		10.13

Earnings Information

Basic Earnings Per Share	No Computations necessary-Available in Compnay’s Annual Reports	2.84		4.09
Dividends Per Share	No Computations necessary-Available in Compnay’s Annual Reports	1.85		1.58

Part II Summary – Analysis of Home Depot & Lowes’ Financial Statements

Home Depot

Discuss Home Depot’s Liquidity based on your analysis of the liquidity ratio and other information in the financial statements.

The current ratio of the company is greater than 1, while its quick ratio is less than 1, showing that the company could pay off its current liabilities fully using the current asset, but less than 50% of the current liabilities could be set off using quick assets. Both receivable turnover and inventory turnover are very high; this implies high efficiency in cash collection on accounts and handling of inventory, as well as good cash flow management. Therefore, the ratios show that the company is very liquid.

Discuss Home Depot’s Profitability based on your analysis of the profitability ratios and other information in the financial statements.

All the profitability ratios are greater than the industry rating except for the return on equity for 2019; this implies that the general profitability performance of the company is above the industry rating. A negative return on equity for 2019 is because of the negative shareholders’ value for 2019.

Discuss Home Depot’s Long-term Solvency based on your analysis of the Long-term solvency ratio and other information in the financial statements.

The company’s debt-to-equity ratio is very high despite its time interest earned being high too. A high debt-to-equity ratio shows that the company operates under a high financial risk but can afford to offset the outstanding loan’s interest expense.

Lowes’

Discuss Lowes’ Liquidity based on your analysis of the liquidity ratio and other information in the financial statements.

Lowes has poor liquidity because it cannot fully pay off its current liabilities using both current and quick assets. Both its current ratio and quick ratio are less than the industry average. Again, the inventory turnover is less than 5 times. Therefore, the company’s liquidity is lower than the industry rating.

Discuss Lowes’ Profitability based on your analysis of the profitability ratio and other information in the financial statements.

The company’s profit margin, asset turnover, and return on assets are less than the industry rating; this means that the ability of the company to maintain low costs is below the industry expectation, and the company’s management does not effectively utilize the company’s resources to generate more income and maximize its returns. Return on equity is above the industry rating; this implies that the company utilizes its shareholders’ funds more than the current expectation.

Discuss Lowes’ Long-Term Solvency based on your analysis of the Long-Term Solvency ratios and other information in the financial statements.

Lowes is highly geared, with more than 5 times debt to equity fund. The interest cover of the company is greater than 5, showing that the company is able to pay its future interest expense.

Part III: Conclusion & Recommendations

Which of the two companies would you invest in today (you must choose one of the two) and why?

I would invest in HD today because it performs better than the current performance rating. The profitability performance of the company is higher than the current rating. Additionally, the company handles its resources efficiently.

Which of the two companies would you have recommended investing in two years ago? Why?

I would recommend investing in Lowes because its net earnings increased by 11. 45% in 2018, more than the increase in HD’s earnings; this means that the company is focused on improving its shareholders’ wealth.

References

Williams, E. E., & Dobelman, J. A. (2017). Financial statement analysis. World Scientific Book Chapters, 109-169.

Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial accounting theory and analysis: text and cases. John Wiley & Sons.

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Question

Advanced Financial Analysis Project

A continuation from Session 3:

Home Depot v. Lowe’s analysis

Return to the financial data you retrieved for Home Depot and Lowe’s from their respective websites in your Session 3 assignment.
Home Depot and Lowes Financial Analysis

Vertical Analysis

Use % of net sales as the base for common sized F.S. for the Income Statement data; Use Total Assets for Assets on the Balance Sheet; Total Liabilities and Shareholders’ Equity as the base for liabilities and equity line items on the Balance Sheet. Identify and briefly discuss two Income Statement and two Balance Sheet Items which changed significantly and what the impact of those changes are. Finally discuss which company controlled their costs better. Your discussion must take place in a Microsoft word document, formatted in APA.

Horizontal Analysis(Trend)

Prepare a trend analysis for the Income Statement for Home Depot & Lowe’s using the first year as the base year. Select key Income Statement Items including: Net Sales or Revenues, COGS or Cost of Sales; Gross Profit; Total Expenses; and Operating Income.

Briefly discuss the implications of the changes in these items. Use the formats retrieved in step A. above for your analysis.

Ratio Analysis

We will continue to analyze Home Depot & Lowe’s by calculating ratios in addition to the ratios calculated in Session 3; and we will continue to analyze those ratios by your entering your assessment of whether each of the ratio’s results are strong (S) neutral (N) or weak (W); and your opinion on whether the ratio has gotten better or worse over the two years.

Retrieve the Ratio Analysis you performed in weeks 3 & 4 and calculate the following ratios for both years for both companies.

Liquidity

Prepare a liquidity analysis by calculating for each company the following:

Current ratio; Quick ratio; Receivable turnover; Average days’ sales uncollected; Inventory turnover

Profitability

Prepare a profitability analysis by calculating for each company the following:

Profit margin; Asset turnover; Return on assets; Return on equity

Long-Term Solvency

Prepare a long-term solvency analysis by calculating for each company the following:

Debt to equity ratio; Interest coverage ratio

Earnings Information

List Basic Earnings Per Share; List Dividends Per Share

Summary Analysis; Conclusion and Recommendation

Summary: Briefly discuss whether or not HD or Lowe’s can pay their debts (liquidity), are profitable, will likely continue to operate (long term solvency) and have a reasonable dividend paying history (earnings). Use the format at the following link: Financial Analysis Summary and Conclusion. Financial Analysis Summary and Conclusion. – Alternative Formats

Conclusions and Recommendations: Take the position of considering these companies as an investment. Evaluate the expected return (short-term and long term) for each and prepare a recommendation of which investment would be more advantageous currently and what you would have recommended 2 years ago. Explain reasons why. Written product should be no more than 2 pages. (You must select one of the two – Home Depot or Lowe’s. Use the format provided at the link listed above.)

The textbook reading are from

Financial and Managerial Accounting 10^th Edition by Belverd E. Needles, Martin Powers, and Susan V Crosson

Home Depot and Lowes Financial Analysis