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Ratio of liabilites to stockholders equity

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Lowes is a major competition to Home Depot in the home improvement business and operates over 700 stores. For the years ending January 31,2003 and Feb 1,2002 lowes reported the following balance sheet data in millions.
2003- total assets-16,109 total liabilities-8302
2002- total assets-13,736- totoal liabilites-7062

a. determine the total stockholders equity as of January 31st, 2003 and Feb 1st 2002
b. Determine the ratio of liablilites to stockholders equity for 2003 and 2002. Round to two decimal places
c. What conclusions regarding the margin of protection to the creditors can you draw from (b)
d. How does the ratio of liabilites to stockholders equity of Lowe's compare to that of Home depot- hint see previous posted question.

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Solution Summary

The solution determines the total stockholders equity and the ratio of liablilites to stockholders equity.

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a. determine the total stockholders equity as of January 31st, 2003 and Feb 1st 2002

stock owners equity= total assets - total liabilities

31-Jan-03

total assets = 16,109
total liabilities 8,302

Therefore stock owners equity= total assets - total liabilities ...

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