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

Final Report and Ratios - Essay Example ive when compared to that of Lowe’s. Total debt ratio is more than 1 in the year 2009 and 2008 for Home depot but it’s less than 1 for Lowe’s in the year 2009 and 2008, which suggests that in case of liquidation, shareholders will be left with nothing in case of Home Depot as debt holders would be paid first. Lowe’s also has a better cover for the interest payables, as the times interest earned ratio which stands at 10.93 is far ahead when compared to that of Home Depot which stands at only 6.89. Lowe’s cash conversion is of particular significance 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/ Lowe’s Annual Report, 31 January 2010, Web site: www.lowes.com