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%  |