Share
Explore BrainMass

Financial Statement Comparison: Lowes and Home Depot

Compare the financial statements for Lowe's and Home Depot for 2010 and 2011 including:
- revenues;
- cost of good sold;
- accounts receivable; and
- accounts payable
- inventory

Show trends for all five categories for each company. Keeping the case analysis in mind, discuss and interpret the changes over the three year period. Which company is the best performer and why? How is this information useful to you from a managerial perspective? Explain your reasoning and support with the numbers you have pulled out for the comparison above. Don't forget to comment on the interaction of the balance sheet and income statement.

Attachments

Solution Preview

Here is the data relating to the trend analysis. (In millions)
Lowes Home Depot
03-Feb-12 28-Jan-11 30-Jan-11 31-Jan-10
1. Revenues 50,208 48,815 67,997 66,176
% 2012 over 2010 103% 103%
2. COGS 32,858 31,663 44,693 43,764
% 2012 over 2010 104% 102%
3. AccRec (note A) 1,800 1,700 1,085 964
% 2012 over 2010 106% 113%
4. AccPay 4,352 4,351 4,717 4,863
% 2012 over 2010 100% 97%
5. Inventory 8,355 8,321 ...

$2.19