Using the current ratio and debt ratios, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt). Support your conclusions. Which company is doing better, why or why not?

For each company and comparing the two, you are to write a 8-10 page report that answers the following: Home Depot versus Lowes ( This is a group project and will only need to complete the question 2 below in 2.5 pages and compute # 3-complete financial ratios (listed below) for both companies and provide as an appendix to the required paper

Instructions attached for clarification

2. Using the current ratio and debt ratios, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt). Support your conclusions. Which company is doing better, why or why not?(2.5 pages)

3. Compute- the following financial ratios for both companies and provide as an appendix to the required paper. If you need help understanding the meaning of the ratios or how to they are computed, go to: http://www.investopedia.com/university/ratios/

Liquidity measurement ratio: Current ratio

Profitability indicator ratios: Return on assets Return on equity

Debt ratio: Debt ratio

Operating performance ratio: Fixed asset turnover ratio

Cash flow indicator ratio: Dividend payout ratio

Investment valuation ratio: Price / Earnings ratio

Attached are some references our group is using for the Home Depot/Lowes comparison. Also, I’ve attached the instructions. Please let me know if you have any questions.

you can add additional resources to the attached I provided as long as they are current and listed. The rubric is listed in the Group instructions.