Nobody downloaded yet

Lowe's Financial Analysis - Essay Example

Comments (0) Cite this document
Summary
is a publicly traded company founded in 1946. It is a US-chain store specializing in retail and home improvements. As of January 2011, Lowe Companies stores are located in 1,749 locations in several areas of United States, Canada and Mexico that employs…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful
Lowes Financial Analysis
Read TextPreview

Extract of sample "Lowe's Financial Analysis"

Download file to see previous pages A horizontal analysis, according to Accounting Management allows the analysts to look at the factors that cause the changes in the operation.
Accounting Coach describes vertical analysis as a method of examining accounts as a percentage of another item and will be shown as a common-size balance sheet. This kind of analysis permits me to compare Lowe’s balance sheet to another company. Thus, analysis of the balance sheet of Lowe Company is stated as a percentage of total asset. (See Annex 6) In the financial statement, vertical analysis of Lowe Company (See Annex 7) will be presented as a percentage of sales, and allows me to compare it with competition and industry average.
3. Calculation of at least five significant liquidity ratios for each of the five years analyzed. The five liquidity ratios used for analysis in Lowe are the current ratio, quick ratio, debt/equity ratio, accounts payable to sales and inventory turnover (See Annex 1 for calculations)
4 .Calculation of at least five significant profitability ratios for each of the five years analyzed. (See Annex 2) Ratios used are gross profit margin, net profit margin, return on sales, return on assets and return on equity.
6 Following guidelines of Accounting Management, long term debt paying ratios used in the study are debt coverage ratios, cash flow to current maturity of long term debt ratio and debt to equity, Ratio of fixed assets to shareholders funds and Proprietary of equity ratio (Accounting for Management) See Annex 4
Based on the Horizontal analysis of Lowe’s financial statement (see Annex 5) revenue in 2011 increased by $1,595million or by 0.03% as compared to sales & revenue in 2010. This change is accompanied by an increase in cost of sales which is equal to the 3% increase in 2011. In other years, from 2007 to 2009, sales are not enough to ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Lowe's Financial Analysis Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Lowe's Financial Analysis Essay Example | Topics and Well Written Essays - 2500 words. Retrieved from https://studentshare.org/miscellaneous/1580185-lowes-financial-analysis
(Lowe'S Financial Analysis Essay Example | Topics and Well Written Essays - 2500 Words)
Lowe'S Financial Analysis Essay Example | Topics and Well Written Essays - 2500 Words. https://studentshare.org/miscellaneous/1580185-lowes-financial-analysis.
“Lowe'S Financial Analysis Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/miscellaneous/1580185-lowes-financial-analysis.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Lowe's Financial Analysis

Financial analysis

...The current ratio indicates the firm’s ability to pay its current liabilities with its current assets (Wood, 1994, p. 418). The current ratios of Johnson & Johnson are very high. It was 1.7 from 2002 to 2003 and has risen gradually in recent years until it is 2.5 in 2005. Such a high current ratio is not ideal as it may mean that the company has too much liquidity and is not optimizing its investment opportunities. The current ratios of Procter & Gamble range from 0.8 to 1.2. When the current ratio is 0.8, the company may have difficulty in meeting its financial claims. The current ratios of Merck & Co are ideal, being generally slightly greater than 1. The quick ratio measures whether the firm has enough liquid...
2 Pages(500 words)Essay

Financial Analysis

... products, household related goods, apparel and many more. The company started as a single retail store in early 1884 and became an international retail chain in a matter of few years. Within a time span of 125 years, the company had diversified itself and entered more than 41 overseas territories. It boasts of 21 million footfalls per shop per week (M&S-a, 2010). Analysis of short term & long term trends To determine the short term performance of the company, its financial statements for the last three years will be taken into consideration. This time period will be stretched to 5 years to understand its long term trend. Short term trend To determine the current position of the company, its present performance in 2009-2010... with...
8 Pages(2000 words)Essay

Financial Analysis

...which have all of Dells business functions and provide support globally, Research and Development, manufacturing, finance, analysis and customer care. Dell has been doing well since its inception in 1984. For instance, in 2000, Dell realized gross revenues of $25 billion and $1.86 in net income. Dell’s ability to repay its current liabilities and maintain enough liquidity can be seen by its current ratio 1.48. Investors have reinvested their funds because of their trust in the company. Thus, it has not paid dividends to stockholders. Here are some of the financial statements for Dell Inc. that give a representation of its performance for the years 2010 and 2012. The statements show that the company has...
8 Pages(2000 words)Essay

Financial Analysis of Carrefour S A

...exposure to avoid unnecessary losses to the firm. With this kind of strategy, the firm can achieve its set goals and objectives. Financial Analysis The action which was taken by Carrefour S.A. was the calculation of GBP/EUR ( i.e 5.375/5.25=1.024) which appeared to be more favorable as compared to the exchange rate of US dollars/EUR ( i.e 5.5/5.25=1.048). Implied forward rate was calculated to help in decision making process. We can use the formula F (f.c. /EUR) = (1+i(EUR))N*S(f.c./EUR) to find the implied 10 year forward rates (i.e 750000000( f.c/5.25)= (1+ 0.1(5.25))10*19.75*(f.c./5.25) which gives a f.c.3.6million of. Use of British pound is a wise a choice to make because of...
4 Pages(1000 words)Case Study

Financial Analysis of M&S

...Marks & Spencer- Financial Report Introduction: Marks & Spenser is one of the top UK’s international retail stores that deal in clothing, home products and food. M&S has over 21 million people visiting their stores every week. They are the leading sellers of women wear and lingerie in UK with 700 stores operative in UK. M&S is an expanding business internationally and has started its operations in many countries of the world with around 390 stores in Europe, Middle East and Asia. Additionally they employ over 78,000 people all over the world. (MARKSANDSPENCER. 2012) Financial Analysis of M&S: Despite of global recession the company has...
5 Pages(1500 words)Essay

Financial Analysis

...HOME RETAIL GROUP ANALYSIS al Affiliation) Table of Contents Home Retail Group is UK based company that deals in retailing of general merchandise. From it, several companies have been developed including Argos as well as Homebase. The company has over 1000 stores in places like Ireland and United Kingdom. The following is the financial analysis of the company. 3 1.    Profits, earnings and dividends (including a comprehensive ratio analysis) 3 1. Percentage gross profit 3 Percentage profit margin 4 Percent Rate of Return on Assets 5 Percent Rate of Return on Equity 5 Activity ratio 6 Operating Cycle Days 6 1b.Earnings 7 1c.Dividends 7 2. Financial...
10 Pages(2500 words)Essay

Financial analysis

... Financial Analysis to help in acquiring Exterran Holdings Inc The existing business estimates that vertical access into business operations that are downstream or upstream from its current operations will raise the margins in target business and current business from 8% to 12%. Generally, the forecast is margins in transaction earnings of 15% can increase by 1.12 to 17%, and the current revenue stands at $25 billion. From the forecast on income statement made after the acquisition of Exterran Holdings Inc, the venture can be considered profitable. The estimate of growth in sales in financial year 2014 is 9%. This value is less by 4% of what was reported in the last financial year (2013). However, the fall in sales is attributed... to...
2 Pages(500 words)Case Study

Financial Analysis

...Financial analysis 6.0 Financial analysis This section will competently involve financial analysis of the SYSPRO software implementation alongside the effect of the systems insurance agency at large. To sufficiently and efficiently carry out the analysis, four vital statements of information namely balance sheet, a start-up budget, income and expense statements are provided. The financial projections are made after the analysis of the historical data that is at hand. The systems insurance agency has made a sound decision of venturing into a new business operation. The primary objective of...
6 Pages(1500 words)Essay

China's financial reform

...allocation. These are the significant factors for market distortions. The Chinese financial repression degree is higher than the world average and also higher than the average for the low-income countries. Amazingly, the financial market policy distortions do not prevent rapid growth of the economy. The Mutual Benefits from Financial China’s Reforms The streamline of the bank license application process leads to increasing the rate of foreign banks investment in China willingly. The reform also increases the opportunity for Chinese regulators and banks to access the first-hand knowledge of financial market (Maswana 100). The Chinese banks would increase...
10 Pages(2500 words)Essay

Lowe's average annual sales

...Lowe’s annual sales Founded in 1946, Lowes as a company is the second-largest home-improvement known retailer in the world. It operates about 1,850 stores all over the U.S., Mexico and Canada where they generate their annual sales. Using the latest U.S. Census estimates for market size Lowes Retail Company is estimated to command nearly 13% domestic market share in terms of sells annually of the home improvement market. The firm has recently created an integrated supply chain to boost their sales that efficiently routes nearly 75% of all their merchandise. This is possible through one of their 15 regional distribution centers. The company posts on average third-quarter earnings of 59...
1 Pages(250 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Lowe's Financial Analysis for FREE!

Contact Us