It was started its company in North Carolina in 19532. It was publically listed since 1961. It is basically American company that is involved in the business of home improvements and appliance store. It is operating its chains in America, Canada, and Mexico. In America, it is on the second number in the race of hardware chain. The company hires independent contractors for different the installation of products such as flooring, building material, and other appliances. The company also encourages the community improvement projects. It funds the different educational institutes and projects. It funds almost 439 million to such projects. It is also basic agenda of a company to sell private brands by using their products. Lowes Corporation has more than 7500 vendors in all the overworld. It out-source many of its products from all these vendors.it is the most dominant company in the US market as it earns 92% of sales. The number employees as recorded on February 2, 2018, are approx. 200,000 full-time and the number of part-time employees are more than 100,000. The company to some extent is a seasonal company. Because if view its annual reports we will see that company is earning more business during the months of May, June, and July. Whereas, its sales tend to decrease in November, December and January. The best thing about the company is that it has its own risk management. It highlights the basic risk factors that can be the cause of any kind of loss to the company. The company is trying to enhance its Omni-channels which will add more value to its earnings. It not necessary through which channel a customer approach, the company will give him complete information before purchasing anything from the products with exact facts. Company’s annual report is available at the official site of SEC. Customers can check and seek guidance from it.
|year ended 31 December||2017||2016||2015|
|income before tax||1582||244|
|income from continued operation||1412||716||287|
Financial statements of company:Financial position of company:
Return on Assets:
It is profit percentage of a company. It is actually the measurement of the income over assets of company.
ROA= Net income/net assets
From above mentioned financial statements the return on assets for 2017 is,
= net income/ net asset
It is the calculation of the revenues of a company over the specified period of time.
NP = net profit before tax/sales * 100
= 1582/13735 * 100
Return on Equity:
It is technique to measure assets on gross value rather than on NBV. It depends on main three things Profit Margin, asset turnover and financial leverage.
ROE= [EBIT/sales * sales/TA –IE/TA] * TA/Book equity * (1-TAX)
= [1110/15784 * 15784/35291 – 447/35291] * 35291/6376*(1-447)