Final Report and Ratios Essay Example | Topics and Well Written Essays - 250 words

Final Report and Ratios - Essay Exampleive when compared to that of Lowes. Total debt ratio is more than 1 in the grade 2009 and 2008 for Home depot but its less than 1 for Lowes in the year 2009 and 2008, which suggests that in case of liquidation, shareholders will be left with zilch in case of Home Depot as debt holders would be paid first. Lowes also has a better cover for the interest payables, as the multiplication interest earned ratio which stands at 10.93 is far ahead when compared to that of Home Depot which stands at only 6.89. Lowes cash conversion is of particular logical implication because the operating profit attributable to shareholders is converted into cash, which could be paid to investors without affecting the business, more efficiently and effectively when compared to that of Home Depot. References Home Depot Annual Report, 31 January 2010, Web site http//www.homedepot.com/ Lowes Annual Report, 31 January 2010, Web site www.lowes.com