Question

Out of the 10 k from Home depot and Lowes from year 2018

1. What is the percentage increase/decrease in revenues?

2. What is the return on assets ratio?

3. What is the return on common stockholders’ equity ratio?

4. What is the percentage increase/decrease in total assets?

5. What is the current ratio?

6. What is the current cash debt coverage ratio?

7. What is the amount of free cash flow?

8. What is the payout ratio?

9. What is the amount of sales per full-time employee?

what will be the answear ?

Answer 1

1. To calculate the percentage increase: First: work out the difference (increase) between the two numbers you are comparing. Then: divide the increase by the original number and multiply the answer by 100. If your answer is a negative number then this is a percentage decrease.

2.Return on assets (ROA) is a financial ratio that shows the percentage of profit a company earns in relation to its overall resources. ... It is commonly defined as net income divided by total assets. Net income is derived from the income statement of the company and is the profit after taxes.

3.Return on common stockholders' equity ratio measures the success of a company in generating income for the benefit of common stockholders. It iscomputed by dividing the net income available for common stockholders by common stockholders' equity. The ratio is usually expressed in percentage.

4.An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. Assets are reported on a company's balance sheet, and they are bought or created to increasethe value of a firm or benefit the firm's operations.

Decreases in current assets occur all the time. The cash balance in a company rises and falls based on inflows and outflows of operational cash and financing activities. A decrease in an asset is offset by either an increase in another asset, a decrease in a liability or equity account, or an increase in an expense.

5.The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. To gauge this ability, the current ratioconsiders the current total assets of a company (both liquid and illiquid) relative to that company's currenttotal liabilities.

6.Current cash debt coverage ratio is a liquidity ratiothat measures the relationship between net cashprovided by operating activities and the averagecurrent liabilities of the company. It indicates the ability of the business to pay its current liabilities from its operations.

7.Free cash flow (FCF) is a measure of a company's financial performance, calculated as operating cash flow minus capital expenditures. FCF represents thecash that a company is able to generate after spending the money required to maintain or expand its asset base.

8.Payout ratio is the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage. The payout ratio can also be expressed as dividends paid out as a proportion of cash flow.

9.Revenue per employee (also called sales per employee) is a financial ratio that measures the revenue generated by each employee of the company on average. It equals the company's total revenue divided by the average number of employeesfor the period.