Compute the assets turnover and return on equity

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Reference no: EM131902190

1. Get Annual Reports for Home Depot and Lowe's from web for 2014 and 2015 (they may not end in the same month and that's fine).

These reports will have voluminous data but you only want to focus on Income Statements and Balance Sheets.

You may need to search for number of Outstanding Shares as these may not be available on Income Statements or Balance Sheets.

For each company and for each year, compute following ratios: (a) assets turnover, (b) return on equity, (c) net profit margin, (d) equity multiplier, and (e) Earnings per Share (EPS). Get related data on an Excel sheet and show computations.

2. You are contemplating to invest $20,000 in one of these companies.

Which one will you choose if you are buying bonds and why? Which one will you choose if you were buying equity shares and why?

You are free to compute any additional ratios, if needed, but mention the ratio and show computations on an Excel sheet.

Reference no: EM131902190

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