In: Finance
compare the ratios of two companies and analyse their performance (150 words)
The home depot |
Vs |
Lowe’s |
||
2013 |
2012 |
2013 |
2012 |
|
Liquidity Current ratio |
1.34 |
1.54 |
1.26 |
1.28 |
Quick ratio |
0.34 |
0.34 |
0.16 |
0.16 |
Working capital |
3910 |
5144 |
2076 |
2181 |
Efficiency Operating cycle |
86.73 |
88.14 |
94 |
93 |
DSO |
6.81 |
6.45 |
N/A |
N/A |
DSI |
79.92 |
81.69 |
94 |
93 |
Profitability ROI |
16.64 |
13.55 |
8.55 |
|
ROA |
11% |
9.5% |
6% |
10% |
ROE |
25% |
21% |
14% |
11% |
Solvency |
||||
Debt ration Interest coverage ratio |
0.56 12.28 |
0.56 11 |
0.57 7.4 |
0.51 9 |
Dupont NPM |
6% |
5.5% |
3.85% |
3.70% |
TAT Financial leverage |
1.81 2.31 |
1.74 2.26 |
1.54 2.35 |
1.5 2.03 |
ROE |
25% |
22% |
13.75% |
11.10% |