A. Format of Paper The paper needs to be typed. Hand-written paper will not be accepted. Other requirements are as follow: Number of Pages: Minimum 5 pages and Maximum 7 pages Spacing: Double line spacing Font: Times New Roman, 11 Margin: 1 inch on each side B. Contents of Paper You need to perform calculations and analysis for two companies: The Home Depot, Inc and Lowe's Companies, Inc. Use the following links to access the financials Calculate the following ratios or percentages for Home Depot and Lowe's.
• ROI
• ROE
• Working Capital
• Current Ratio
• Acid Test Ratio
• Leverage Analysis Required: Explain from your point of view how these two companies performed financially based on the ratios you calculate. In particular:
a) Did Home Depot do better or worse in fiscal year 2011 compared to 2010 based on your calculations? You have to comment on every ratio you calculate.
b) Do the same steps for Lowe's as in a) above.
c) Whether Home Depot did better or worse than Lowe's for both fiscal year ended 2011 and 2010 respectively. Your comments should be based on each ratio you calculate for both fiscal year ended 2011 and 2010.
d) On an overall basis, which company you think performed better in 2011? In 2010. Why?