Selected financial data of two competittors, Home Depot andLowe's are presented here (All dollars are in millions). Supposethe data were taken from 2014 financial statement of eachcompany.
HomeDepot Lowe's
Income Statement Data for year
NetSales $77,349 $48,283
Cost of goodssold 51,352 31,556
Selling and Administrativeexpenses 18,570 12,020
Interestexpense 696 239
Other income 74 45
Incometaxes 2,410 1,702
Netincome $4,395 $2,809
Balance sheet Data (End of the year)
Currentassets $14,674 $8,686
Non current assets 29,650 22,183
Total Assets $44,324 $30,869
Currentliabilities $12,706 $7,751
Long-termliabilities $13,904 $7,020
Total StockholderEquity 17,714 16,098
Total Liabilities and StockholdersEquity $44,324 $30,869
Net Cash provided by Operatingactivities $5,727 $4,347
Cash paid for CapitalExpenditures $3,558 $4,010
Dividendpaid $1,709 $428
Average Sharesoutstanding 1,849 1,481
Instructions
For each company compute these values and ratios
(a) working capital (b)Current ratio (Round to twodecimal places) (c) Debt to assetsratio (d) Free Cash flow (e) Earning pershare (f ) Compare liquidity, profitability and solvency of the twocompanies.
Selected financial data of two competittors, Home Depot andLowe's are presented here (All dollars are in millions). Supposethe data were taken from 2014 financial statement of eachcompany.
HomeDepot Lowe's
Income Statement Data for year
NetSales $77,349 $48,283
Cost of goodssold 51,352 31,556
Selling and Administrativeexpenses 18,570 12,020
Interestexpense 696 239
Other income 74 45
Incometaxes 2,410 1,702
Netincome $4,395 $2,809
Balance sheet Data (End of the year)
Currentassets $14,674 $8,686
Non current assets 29,650 22,183
Total Assets $44,324 $30,869
Currentliabilities $12,706 $7,751
Long-termliabilities $13,904 $7,020
Total StockholderEquity 17,714 16,098
Total Liabilities and StockholdersEquity $44,324 $30,869
Net Cash provided by Operatingactivities $5,727 $4,347
Cash paid for CapitalExpenditures $3,558 $4,010
Dividendpaid $1,709 $428
Average Sharesoutstanding 1,849 1,481
Instructions
For each company compute these values and ratios
(a) working capital (b)Current ratio (Round to twodecimal places) (c) Debt to assetsratio (d) Free Cash flow (e) Earning pershare (f ) Compare liquidity, profitability and solvency of the twocompanies.
