Lowe's Financial Summary

Although times have changed since Lowe's first opened its doors in 1946, Lowe's values have not: the company remains committed to offering quality home improvement products at the lowest prices, while delivering superior customer service. Lowe's utilizes both strategic and financial planning in order to further their business and to stay in the competition with other home improvements stores for many years. Using strategic planning, the company has been able to make changes that allowed saving money and improving customers' experience. As diligent as Lowe's has been over the years, Lowe's reported a slight decrease in its sales and its earnings in its 2008 annual report. For 2009, the company plans to increase its revenues by using a

While Lowes has a smaller debt-to-asset ratio (~.64 compared to Home Depot’s ~.69) and a smaller debt-to-equity ratio (~1.76 compared to Home Depot’s ~2.24), the future liquidity and solvency of the company could come into question due to Lowes’s low current ratio, which has consistently trended downward, dropping from ~1.28 to ~1.16, over the past three years.

Macy’s Inc. ratio was .02 and JC Penny Co. Inc. was .00. To improve this ratio, both companies need to improve on their net income. If JC Penny doesn’t continue to improve its net income, then this ratio will begin to lean negative, signaling the company is losing money for every dollar is sales and may not be good investment. Macy’s Inc. still has room before it hits .00, however, if their net income continues to fall, they soon too may have the same profit margin ratio as JC Penny Co. Inc. Shutting down unsatisfactory stores – as each company is doing – may help improve this ratio as well. With less funding going to these stores, such as salary’s, rent, and wasted inventory, they will be able to improve their net income value.

Moreover, through expanding its business in the Canadian and Australian market would help Lowe’s to outperform its competitors as Home Depot in the housing market. In addition, decrease the size of stores would reduce the expenses and cost of operations that enhance the profit of Lowe’s that help it to take competitive position in the housing market and continue improve its economy or financial position (Stuart, 2012). So, Lowe’s should expand its business in the Canadian and Australian market to improve its present in international market s well as reduce the size of its stores to decline the operations costs that would best strategies for it to outperform Hemo Depot and economy continue to

The most noticeable growth in this section is seen in sales from 2002 to 2003. These sales have increased from 3.7% in 2001-02 to 23.5% in 2002-03 after the expansion of the store. This truly helps the company to a positive way when seeing such drastic changes. Net earnings have almost doubled and gross profit was on the rise as well, which is also a positive trend for the company that will not go unnoticed. This indicates a positive correlation and increases in profitability.

Lowes is currently the second largest retailer by sales in the home improvement retail industry. It is also the 8th largest retailer in the United States and the 19th largest retailer in the world. The market cap for Lowes is currently $56.2 billion. Lowes’ stock price is currently (Dec 2) $63.83, just 31 cents off of its all time high from Nov 25. The company’s stock price has been volatile in nature since the turn of the decade in 2000. While it has been volatile, the general trend has been increasing steadily. Lowes’ stock did experience the drop in prices seen market wide during the recession in 2008 and 2009. Going from a high of $34.93 in February 2007, all the way down to $13.39 in March of 2009 (- 62%). Since September 2011 the stock price has shot up and experienced a 200% increase.

The purpose of this paper is to conduct a financial analysis of Lowe’s Companies, Inc. using financial ratios. The emphasis will be on examining ratios under the aforementioned categories and identifying trends in Lowe’s Companies, Inc. and comparing those findings with the industry averages. This paper will conclude with an assessment regarding the stability and future growth potential of Lowe’s Companies, Inc. in an ever changing economy.

However, in 1999, Lowe’s recorded very high sales growth alongside its expansion in preparation for the new millennium. From 1999 to 2001, Lowe’s began to assert itself as a worthy competitor for Home Depot, embodied in its significantly better margins and turnover ratios despite the recessionary economic environment. This improvement in ratios is indicative of positive change in the management of the

We feel that Lowe’s will receive a favorable rating at this point in time when the financial analysis has been done for the years 2011-2015. Since Lowe’s stock would receive a favorable rating, as analysts we believe you should [BUY] Lowe’s stock. Our research, and the analysis we have conducted shows Lowe’s financial strength in the industry to be at a stable and stronger level. They’re competing at par with other competitors in the industry while maintaining their standing as the second largest home improvement retailer, second to only Home Depot who remains to be the industry leader. However, that doesn’t necessarily mean that Lowe’s is doing comparably worse. Lowe’s has been developing a strategy to counter their largest competitor by appealing

Sears Holdings is a relatively new company, having only been created in November of 2004 (Barbash & Barbaro, 2004). At that time, Kmart Holdings purchased Sears, Roebuck, and Co. The corporation decided it would operate stores under both names, and the merger was officially completed in March of 2005. The shareholders voted to close the deal, or it would not have been able to take place. Now the company is called Sears Holdings, and it operates both Sears and Kmart stores (Barbash & Barbaro, 2004). The company also markets both brands without blending them or favoring one over the other. There were several reasons why the companies chose to combine.

In 2013, Jcpenney had Return on Equity (ROE) of -66.59%. By 2014, JCPenney rapidly dropped to a -47.16% and the following the next year in 2015, there was a significant increase to -30.07%. Between 2013 and 2014 JCPenney was not able to utilize the stockholders cash and generate a more profitable return for the company. In 2015, the analysis continues to show that JCPenney was struggling to generate a fair enough profit with their stockholders money. The company’s Return on Operating Assets (RNOA) tell us that in the last three years JCPenney had the best return deriving from operations of -55.44% in 2014. In 2013 and 2014 the company did not do so well in accumulating profits from operating income. In 2013 RNOA was -24.96%, and in 2015 RNOA was -5.54%. In the last three years, 2015 was the best year in generating profit for JCPenney.

There are three liabilities at the end of the three month operating period. Two are the current liabilities accrued payroll $2,100 and accrued utilities $350. The third is the longer term obligation for the equipment ($47,310.) The liability account balance is $49,760.

Cash on hand is $398 million. This is only a $110 million increase from December 31, 1999. This means relatively little, as the cash flows for the corporation is what really matters.

of smaller competitors and also grow organically. It can also divest itself of under performing stores and invest in markets where it sees higher profit potential.

As of December 31, 2010 Total current liabilities were 30,723 compared to 23,491 in 2009. Part of ArcelorMittal’s current liability stems from a 3.2 billion term loan repayment due in 2011 from its credit facility. It has begun to make a goal of reducing debt by delaying near term payments on debt through refinancing and by modifying the terms of its repayment contracts. Accounts payable is the largest current liability at 13,256 for the year ending 2010 compared to 10,676 in 2009. The increase is due to increase in transactions with related parties that include associates and joint ventures with the company. Its second largest current liability is accrued expenses which were 6,900 for the year ending 2010 compared to 6,922 in 2009.