In: Accounting
Access the Lowe's Web site and download the 2011 annual report. Write a brief summary of the basic operations and the performance of the firm indicated in this report. Discuss what you think would be useful metrics and rationale for the firm to plan for a significant expansion in terms of their number of stores.
To start with the answer in general my personal review is to look into business performance these are few of the metrics that are significant importance in planning expansion:
Also its a website based on the company you can check out the Monthly Website Traffic.
Looking at the financials of the Lowe's Website it is seen that there has been a constant growth in the sales and net margin of the business since 2005. Also cash dividend per share and earnings per share has increased.Few more reasons for expansion is if you check the 10 year financials of the company you will see that Store sales ha increased by 1.3%, Sales per selling quare foot has increased and financial inventory turnover has increased. Also in 2010 there has been a significant increase in operatig cash flow which mean that the company would be cash rich to make furtther investments.