Lowes and Home Depot Report the Following Information in Their

question 19

Essay

Lowes and Home Depot report the following information in their 2010 annual financial statements ($ in millions): $\begin{array}{lrr}\text { Lowes }&2010&2009\\\text { Sales } & \$ 47,220 & \$ 48,230 \\\text { Net income } & 1,783 & 2,195 \\\text { Operating cash flows } & 4,054 & 4,122 \\\text { Total assets } & 33,005 & 32,625\\\\\text { Home Depot }&2010&2009\\\text { Sales } & \$ 66,176 & \$ 71,288 \\\text { Net income } & 2,620 & 2,312 \\\text { Operating cash flows } & 5,125 & 5,528 \\\text { Total assets } & 40,877 & 41,164\end{array}$ Calculate Lowe's and Home Depot's cash return on assets, cash flow to sales ratio, and asset turnover ratio for 2010. Which company has the better cash flow to sales ratio and which company has the better asset turnover ratio?

---

Definitions:

Thyroid Gland

An endocrine gland located in the neck that produces hormones regulating metabolism, energy generation, and the body's sensitivity to other hormones.

Parathyroid Glands

Small glands located behind the thyroid that regulate calcium levels in the blood.

Thyroid Gland

A butterfly-shaped gland located in the neck that produces hormones regulating metabolism, energy generation, and growth and development.

Mammary Glands

The breasts.