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Home Depot and Lowes Financial Analysis

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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

  1. Vertical 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.

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.

  1. 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.

  1. 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

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