For this component of the project, you are asked to complete an analysis of financial ratios for Lowe’s, both through time and relative to financial ratios for Home Depot, using both tables and graphs. To complete the through-time analysis, obtain the financial data for Lowe’s for the year 2011 and the prior two years of data. Calculate the financial ratios for each year and present these ratios in a table format. Select key ratios to emphasize by presenting them in a graphical/chart format. Discuss each ratio with respect to how it has adjusted across time and explain what conclusions you generate from each. To complete the relative analysis, obtain the financial data for Lowe’s for the year 2011 and selected data for competing firm(s) for 2011, in this case Home Depot. Calculate the financial ratios for each company and present these ratios in a table format. Select key ratios to emphasize by presenting them in a graphical/chart format. Discuss each ratio with respect to how the Lowe’s ratio differs from the competing firm and what conclusions you generate from each.
If you compare your company’s data with more than one competing firm, present each firm’s ratios plus an average ratio of the competing firm collectively. Even if you have more than one competing firm in your analysis, you likely will want to compare Lowe’s directly to its single closest competitor. The Financial Ratios Analysis Example, located in the Resources, using Home Depot data provides guidance on how to proceed. A summary of the basic data needed for this project has been provided.
