Lowe's Research Paper
Lowe’s Companies, Inc.
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Table of Contents
I. Introduction • Describe Financial Statement Analysis • The scope of analysis • Purpose of Paper
II. Background • History • Description of business • What company is working on and their are products
III. Methodology • Identify the method used to identify and locate sources • Explain the rationale used for selecting the sources to analyze • Explain the analytical technique be used for analyzing the sources • Identify the criteria for evaluating the information found
IV. Analysis and Discussion • Present 5 years of statements – Ratio – Trend Analysis – See if ratios are improving • Discuss scores • Discuss financial performance of company • Comparative analysis with industry and/or products
V. Conclusion • Identify findings • Answer research question
VI. Works Cited
VII. Appendix
Introduction
Financial analysis is used to assess the financial stability of a company. Creditors are interested in the short-term liquidity of a company and whether the company can repay its debts on time. So creditors use financial statements to determine whether a company is creditworthy. Stockholders are interested with future earning and dividend payouts and use the financial statements to determine whether a company is worth investing in. Creditors and stockholders seek prior and current financial information on prospective companies before entering a business relationship with them. The information obtained from financial statements will give a quick snapshot of whether the company is financially stable.
The financial statement is a written report which quantitatively describes the financial health of a company. This includes a balance sheet and income statement. The Balance Sheet is a quantitative summary of a company 's financial condition at a specific point in time. It contains
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Table of Contents
I. Introduction • Describe Financial Statement Analysis • The scope of analysis • Purpose of Paper
II. Background • History • Description of business • What company is working on and their are products
III. Methodology • Identify the method used to identify and locate sources • Explain the rationale used for selecting the sources to analyze • Explain the analytical technique be used for analyzing the sources • Identify the criteria for evaluating the information found
IV. Analysis and Discussion • Present 5 years of statements – Ratio – Trend Analysis – See if ratios are improving • Discuss scores • Discuss financial performance of company • Comparative analysis with industry and/or products
V. Conclusion • Identify findings • Answer research question
VI. Works Cited
VII. Appendix
Introduction
Financial analysis is used to assess the financial stability of a company. Creditors are interested in the short-term liquidity of a company and whether the company can repay its debts on time. So creditors use financial statements to determine whether a company is creditworthy. Stockholders are interested with future earning and dividend payouts and use the financial statements to determine whether a company is worth investing in. Creditors and stockholders seek prior and current financial information on prospective companies before entering a business relationship with them. The information obtained from financial statements will give a quick snapshot of whether the company is financially stable.
The financial statement is a written report which quantitatively describes the financial health of a company. This includes a balance sheet and income statement. The Balance Sheet is a quantitative summary of a company 's financial condition at a specific point in time. It contains
Cited: BizMiner Industry Analysis and Marketing Plan Research 2003 Retrieved 30 Oct. 2003 from http://www.bizminer.com/index.asp Business Resource Software Retrieved 6 Nov. 2003 from http://www.businessplansoftware.org/advice_ratios.asp CCH Business Owner’s Toolkit. Fixed Asset Turnover Retrieved 6 Nov. 2003 from, http://www.toolkit.cch.com/text/P06_7185.asp Dean Foust. “Home Depot Still Hasn’t Nailed Lowe’s.” BusinessWeek online Nov. 2003. Retrieved 22 Nov. 2003 from, http://yahoo.businessweek.com/bwdaily/dnflash/nov2003/nf20031120_4958_db014.htm Foster, Evelyn. "Investor Information." Personal e-mail 21 Nov. 1995 Garrison, Ray H Hill, 2002. Gitman, Lawrence J. Principles of Managerial Finance: Brief 2nd ed. Massachusetts: Addison- Longman, 2000. Mathis, Rock. “Ratio Analysis” Corporate Finance Live 2000 Retrieved 20 Oct. 2003 from, http://www.prenhall.com/divisions/bp/app/cfldemo/RA/RatioAnalysis.html Wagle, Yogeesh. “Retailing Specialty.” Standard & Poor’s 16 Oct. 2003 Retrieved 27 Oct. Ventureline.com. Retrieved 31 Oct. 2003 from http://www.ventureline.com/OneIndustry.asp [10] Foster, Evelyn. “Investor Information.” Personal email (21 Nov. 2003).