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In: Finance

compare the ratios of two companies and analyse their performance (150 words) The home depot                ...

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%

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