ACT 5140 - Accounting for Decision Makers
Lowes Companies Assignment
Directions: Answer all the questions. Please submit your work in Word or PDF formats only. You can submit an Excel file to support calculations, but please "cut and paste" your solutions into the Word or PDF file. Be sure to show how you did your calculations. Also, please be sure to include your name at the top of the first page of your file.
Part 1
Perform a vertical and horizontal analysis of Lowes Companies income statements and balance sheets as of January 29, 2016. In performing this analysis, consider any notable trends or changes that you observe that may provide useful information concerning its financial condition. Also use as many years' worth of statements as you feel necessary. You should write up your results in paragraph form.
Part 2
Assess Lowes Companies concerning liquidity, solvency, profitability, and stock performance as of January 29, 2016. For each area, you should calculate the ratios we discussed in class and provide an analysis of the ratios calculated. It would also be helpful to compare Lowes's ratios with Home Depot's ratios. I include historical stock price information and outstanding common share information below.
|
Fiscal Year Ended
|
1/29/2016
|
1/30/2015
|
1/31/2014
|
2/1/2013
|
|
Adjusted Closing Price
|
$71.40
|
$66.50
|
$44.68
|
$36.64
|
|
Common Shares Outstanding (millions)
|
910
|
960
|
1,030
|
1,110
|