Candice R. Lambert
May 26, 2013 Darcie Sargent
Financial Statement Analysis
I choose Lowes as my company to complete my financial analysis. The financial statement I chose to use was Lowes annual 10-K report. The first weakness I found in this report is the overwhelming amount of information. Someone with no background in financial reports may have no idea what they are looking at. Another down fall is all the information in this report. There are 15 pages of reading and not all of it is relevant. Last down fall is the information about consumer improvements like giving IPhones to associates. I find this to less important compared to how much they cost on the budget. The first strength is that the 10-k has lots of financial information and has it at least 3 years back. The second strength is it has the three main financial statements, balance sheet, statement of earnings, and cash flow. Last strength is that it has the CEO’s signature.
The net profit trend is not that stead y over the past three years. In 2011 they net was $2010 million, 2012 $ 1839, and 2013 is $1959 (U.S. Securities and Commissions Exchange, 2013). The debt to percentage of total assets on is the past two years and is 57.6% for 2013 and 50.7% for 2012 showing an increase in debt (U.S. Securities and Commissions Exchange, 2013). As for debt as a percentage of total equity it was 8.2% in 2010, 7.7% in 2011, and 8.2% again in 2012 (U.S. Securities and…