Homework SourseWhat is the price earnings Ratio for Lowes and Home Depot HO
What is the price earnings Ratio for Lowe\'s and Home Depot?
HOME DEPOT Balance Sheet
Consolidated Balance Sheets - USD ($)
$ in Millions
LOWES Balance Sheet
Consolidated Balance Sheets - USD ($)
$ in Millions
| Consolidated Balance Sheets - USD ($) | Jan. 29, 2017 | Jan. 31, 2016 |
|---|---|---|
| Current Assets: | ||
| Cash and Cash Equivalents | $ 2,538 | $ 2,216 |
| Receivables, net | 2,029 | 1,890 |
| Merchandise Inventories | 12,549 | 11,809 |
| Other Current Assets | 608 | 569 |
| Total Current Assets | 17,724 | 16,484 |
| Property and Equipment, at cost | 40,426 | 39,266 |
| Less Accumulated Depreciation and Amortization | 18,512 | 17,075 |
| Net Property and Equipment | 21,914 | 22,191 |
| Goodwill | 2,093 | 2,102 |
| Other Assets | 1,235 | 1,196 |
| Total Assets | 42,966 | 41,973 |
| Current Liabilities: | ||
| Short-Term Debt | 710 | 350 |
| Accounts Payable | 7,000 | 6,565 |
| Accrued Salaries and Related Expenses | 1,484 | 1,515 |
| Sales Taxes Payable | 508 | 476 |
| Deferred Revenue | 1,669 | 1,566 |
| Income Taxes Payable | 25 | 34 |
| Current Installments of Long-Term Debt | 542 | 77 |
| Other Accrued Expenses | 2,195 | 1,941 |
| Total Current Liabilities | 14,133 | 12,524 |
| Long-Term Debt, excluding current installments | 22,349 | 20,789 |
| Other Long-Term Liabilities | 1,855 | 1,965 |
| Deferred Income Taxes | 296 | 379 |
| Total Liabilities | 38,633 | 35,657 |
| STOCKHOLDERS\' EQUITY | ||
| Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.776 billion shares at January 29, 2017 and 1.772 billion shares at January 31, 2016; outstanding: 1.203 billion shares at January 29, 2017 and 1.252 billion shares at January 31, 2016 | 88 | 88 |
| Paid-In Capital | 9,787 | 9,347 |
| Retained Earnings | 35,519 | 30,973 |
| Accumulated Other Comprehensive Loss | (867) | (898) |
| Treasury Stock, at cost, 573 million shares at January 29, 2017 and 520 million shares at January 31, 2016 | (40,194) | (33,194) |
| Total Stockholders’ Equity | 4,333 | 6,316 |
| Total Liabilities and Stockholders\' Equity | $ 42,966 | $ 41,973 |
Solution
Price at 29 Jan 2017 = 40194 / 573 = $70.15 per share (from Treasury stock data)
Price at 31 Jan 2016 = 33194 / 520 = $63.83 per share
EPS for 2017 = (RE $35519 - RE $30973)m = 4546m / outstanding shares 1776m = $2.56 pershare
Price Earnings ratio for 2017 = Price on 29 Jan 17 / EPS for 2017 = $70.15 / $2.56 = 27.40 times
