answered: In this project, you are supposed to be the financial analyst that is covering the same firm studied

In this project, you are supposed to be the financial analyst that is covering the same firm studied in MP1 and MP2. You have to apply the knowledge obtained in this class to develop possible future scenarios in order to forecast financial statements 4 years into the future, calculate the free cash flows and then calculate the fundamental value of the firm. Once you compare the expected price from the scenarios against current stock price, you will develop a recommendation whether to BUY, HOLD or SELL the share of that company.

University of Houston-Victoria
FINC 6352- Financial Management
Dr. Xavier Garza Gomez
Mini Project 4

Financial statement forecast and Corporate Valuation

1. Purpose of the project:
In this project, you are supposed to be the financial analyst that is covering the same firm studied
in MP1 and MP2. You have to apply the knowledge obtained in this class to develop possible
future scenarios in order to forecast financial statements 4 years into the future, calculate the free
cash flows and then calculate the fundamental value of the firm. Once you compare the expected
price from the scenarios against current stock price, you will develop a recommendation whether
to BUY, HOLD or SELL the share of that company.

2. Outline for the project:
(1) Estimate Operating ratios

Using the financial statements obtained in MP1, students will calculate operating ratios:
(cost/sales, Dep/PPE, cash/sales, AR/sales, Inv/sales, PPE/sales, AP/sales, accruals/sales,
tax rate) for the past 15 years

(2) Estimate short term and long-term sales growth rates
Students will use the growth profile reported in MP1 to develop scenarios of possible
sales growth for the next 2 years. For years 3 and 4, students will analyze long-term
growth prospects for the company based on the growth of the economy. (real GDP
forecasts, inflation) or other macroeconomic variables (wages growth, population growth,
etc.) while considering the countries/regions where the company operates.

(3) Develop scenarios
Based on the forecast for sales growth and the ranges for operating variables, students
will develop two initial scenarios.

1) “Stay the same” scenario. This scenario just uses the most recent values of the
operating ratios and the most recent sales growth rate for years 1 and 2.

2) “Average value” scenario. Using 15 years of data, this scenario uses the mean of
all operating ratios and the average of sales growth to forecast values for years 1
and 2.

Alexis Giusti

FINC 6352 – Financial Management MP4 Dr. Xavier Garza Gómez

At this stage of the process, students will decide which of the two initial scenarios
(current or average) will be used as base for the other scenarios.
3) Minor improvement scenario. Operating ratios and growth rates improve for the

company. Improvement for operating variables doesn’t exceed 25% of the
variable’s 15-yr range or 1% for sales growth rates. Improvement is applied to the
“base” scenario.

4) Mild recession. Operating ratios and growth rates deteriorate. Change for
operating variables doesn’t exceed 25% of the variable’s 15-yr range or 1% for
growth rates.

5) Major improvement scenario. Operating ratios and growth rates improve for the
company. Improvement for operating variables may exceed 25% of the variable’s
15-yr range or 1% in growth rates.

6) Continued deterioration. Operating ratios and growth rates deteriorate. Change for
operating variables may exceed 25% of the variable’s 15-yr range or 1% in
growth rates.

For simplicity, the scenarios will only modify Year 1 operating ratios and assume they
stay constant forever. That is, no improvement/deterioration in operations occur after
year 1.
Once the scenarios are defined, probability must be assigned to each of them.

(4) Calculate FCF
Calculate 4 years of FCF for the firm using the template. Make sure the Year 4 growth rate
for FCF matches the long-term growth rate in sales.

(5) Valuation
Using the WACC and tax rate calculated in MP2, students will calculate the value of
operations and the stock price of the company for each of the scenarios

(6) Sensitivity analysis and recommendation
Students will analyze the sensitivity of the price estimate to the growth scenarios and in
relation to the main input variables. Students will develop a BUY/HOLD/SELL
recommendation based on the expected price and the price range (standard deviation)
obtained from the scenarios.

FINC 6352 – Financial Management MP4 Dr. Xavier Garza Gómez

3. Other information regarding the project:
(1) Information obtained in previous MPs is needed for the successful completion of this mini

project. Comments/feedback received about WACC calculation must be incorporated into
the Excel file before final submission.

(2) The reports will be submitted individually.

This mini project is worth 60 points (out of 1000).

  • 1. Purpose of the project:
  • 2. Outline for the project:

Compet1

Home Depot Inc (NYS: HD)
Exchange rate used is that of the Year End reported date
HD
Profitability Ratios 01/31/2021 02/02/2020 02/03/2019 01/28/2018 01/29/2017 01/31/2016 02/01/2015 02/02/2014 02/03/2013 01/29/2012 01/30/2011 01/31/2010 02/01/2009 02/03/2008 01/28/2007
ROA % (Net) 21.18 23.67 24.72 19.78 18.66 17.04 15.81 13.23 10.94 9.66 8.26 6.5 5.3 8.95 11.94
ROE % (Net) 14099.83 AvgEqty<0 AvgEqty<0 299.07 149.85 89.89 58.25 35.64 25.01 21.17 17.49 14.36 12.77 20.23 22.24
ROI % (Operating) 53.2 57.05 54.76 52.19 48.46 43.61 39.05 32.93 26.69 23.3 20.29 16.53 14.48 21.01 28.66
EBITDA Margin % 15.67 16.39 16.27 16.59 16.28 15.41 14.73 13.86 12.64 11.85 11.11 9.99 8.78 11.83 12.72
Calculated Tax Rate % 24.22 23.6 23.6 37 36.3 36.4 36.4 36.4 37.2 36.01 36.7 34.2 35.6 36.4 38.11
Revenue per Employee 262427 265884 257756 244991 233633 230551 224810 216516 216309 213258 212411 209331 222000 229904 250238
Liquidity Ratios 01/31/2021 02/02/2020 02/03/2019 01/28/2018 01/29/2017 01/31/2016 02/01/2015 02/02/2014 02/03/2013 01/29/2012 01/30/2011 01/31/2010 02/01/2009 02/03/2008 01/28/2007
Quick Ratio 0.47 0.23 0.22 0.34 0.32 0.33 0.28 0.31 0.34 0.34 0.16 0.23 0.13 0.14 0.3
Current Ratio 1.23 1.08 1.11 1.17 1.25 1.36 1.36 1.42 1.34 1.55 1.33 1.34 1.2 1.15 1.39
Net Current Assets % TA 7.52 2.8 4.12 6.15 8.36 10.5 10.1 11.18 9.52 12.7 8.37 8.65 5.37 4.44 9.7
Debt Management 01/31/2021 02/02/2020 02/03/2019 01/28/2018 01/29/2017 01/31/2016 02/01/2015 02/02/2014 02/03/2013 01/29/2012 01/30/2011 01/31/2010 02/01/2009 02/03/2008 01/28/2007
LT Debt to Equity 10.86 Equity<0 Equity<0 16.69 5.16 3.31 1.81 1.17 0.53 0.6 0.46 0.45 0.54 0.64 0.47
Total Debt to Equity 11.29 Equity<0 Equity<0 18.59 5.45 3.37 1.84 1.18 0.61 0.6 0.52 0.5 0.64 0.76 0.47
Interest Coverage 14.06 14.05 15.94 14.93 14.35 15.64 21.24 13.11 14.25 11.23 10.32 5.85 5.67 11.64 26.5
Asset Management 01/31/2021 02/02/2020 02/03/2019 01/28/2018 01/29/2017 01/31/2016 02/01/2015 02/02/2014 02/03/2013 01/29/2012 01/30/2011 01/31/2010 02/01/2009 02/03/2008 01/28/2007
Total Asset Turnover 2.17 2.32 2.4 2.31 2.22 2.15 2.07 1.94 1.8 1.75 1.68 1.62 1.67 1.58 1.88
Receivables Turnover 51.97 54.69 54.76 50.83 48.41 52.62 57.88 56.59 55.72 60.59 66.55 68.55 64.08 33.96 32.42
Inventory Turnover 5.6 5.11 5.33 5.26 5.11 5.09 4.9 4.72 4.65 4.4 4.29 4.2 4.22 4.18 5.04
Accounts Payable Turnover 13.66 14.22 14.19 14.21 13.99 14.35 14.38 14.15 14.38 14.75 14.23 13.7 13.55 11.63 13.61
Accrued Expenses Turnover 27.32 26.67 26.86 27.02 26.58 26.68 26.18 25.6 24.8 24.62 24.11 23.59 24.99 24.63 30.09
Property Plant & Equip Turnover 5.58 4.9 4.79 4.6 4.3 3.95 3.62 3.33 3.03 2.85 2.69 2.56 2.66 2.81 3.54
Cash & Equivalents Turnover 26.42 56.52 39.63 33 39.91 45.07 45.68 35.74 32.83 55.76 69.36 68.41 148.31 145.64 130.78
Per Share 01/31/2021 02/02/2020 02/03/2019 01/28/2018 01/29/2017 01/31/2016 02/01/2015 02/02/2014 02/03/2013 01/29/2012 01/30/2011 01/31/2010 02/01/2009 02/03/2008 01/28/2007
Cash Flow per Share 17.59 12.59 11.28 10.24 7.98 7.36 6.18 5.37 4.58 4.27 2.79 3.05 3.3 3.05 3.74
Book Value per Share 3.06 -2.89 -1.7 1.26 3.6 5.04 7.13 9.07 11.98 11.64 11.64 11.42 10.48 10.48 12.71

ratios company

Lowe’s Companies Inc (NYS: LOW)
Exchange rate used is that of the Year End reported date
LOW
Profitability Ratios 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
ROA % (Net) 13.57 11.61 6.65 9.92 9.27 8.09 8.38 7.01 5.93 5.38 6.04 5.44 6.93 9.61 11.87
ROE % (Net) 343.27 152.88 48.76 56.17 43.2 28.98 24.8 17.83 12.93 10.44 10.84 9.63 12.89 17.7 20.71
ROI % (Operating) 43.48 30.78 18.86 29.35 27.11 23.94 21.99 18.36 15.16 13.2 14.62 12.93 16.19 21.98 27.17
EBITDA Margin % 11.26 10.69 7.6 10.96 11.3 10.93 11.16 10.5 10.06 9.47 10.54 10.01 11.04 12.57 13.45
Calculated Tax Rate % 24.6 23.87 31.82 37.2 40.53 42.39 36.9 37.76 37.55 36.72 37.73 36.88 37.39 37.73 37.88
Revenue per Employee 264245 226082 238350 221960 220571 219394 211945 204442 206775 199177 209184 198116 211190 224147 224076
Liquidity Ratios 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Quick Ratio 0.28 0.06 0.05 0.06 0.05 0.07 0.06 0.06 0.09 0.16 0.16 0.14 0.08 0.07 0.12
Current Ratio 1.19 1.01 0.98 1.06 1 1.01 1.08 1.16 1.27 1.28 1.4 1.32 1.15 1.12 1.27
Net Current Assets % TA 7.69 0.34 -0.78 1.92 0.08 0.22 2.3 4.34 6.36 6.5 8.45 7.2 3.76 3.03 6.39
Debt Management 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
LT Debt to Equity 14.38 8.5 3.95 2.65 2.24 1.51 1.08 0.85 0.65 0.43 0.36 0.24 0.28 0.35 0.28
Total Debt to Equity 15.16 9.79 4.45 2.89 2.44 1.65 1.14 0.89 0.66 0.46 0.36 0.27 0.34 0.41 0.28
Interest Coverage 11.38 9.14 6.44 10.4 9.06 9.01 9.29 8.72 8.42 8.83 10.72 10.84 13.52 24.25 33.45
Asset Management 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Total Asset Turnover 2.08 1.96 2.05 1.97 1.95 1.88 1.75 1.64 1.53 1.47 1.47 1.44 1.52 1.65 1.79
Receivables Turnover 5228.44
Inventory Turnover 4.09 3.82 4.04 4.14 4.27 4.19 4.07 3.94 3.92 3.94 3.82 3.74 4.01 4.28 4.44
Accounts Payable Turnover 9.69 9.08 9.62 10.39 10.41 11.01 11.13 11.08 11.25 11.35 11.33 11.28 12.37 13.38 14.81
Accrued Expenses Turnover 50.07 52.37 53.48 50.3 46.34 44.72 44.58 45.76 48 58.73 78.7 93.67 112.73 121.65 118.23
Property Plant & Equip Turnover 4.75 3.9 3.75 3.47 3.24 2.99 2.76 2.53 2.33 2.24 2.2 2.09 2.19 2.4 2.66
Cash & Equivalents Turnover 33.24 117.92 130.13 120.08 132.85 136.02 131.57 114.94 65.16 59.3 76.24 107.98 183.89 150.13 119.58
Per Share 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Cash Flow per Share 14.81 5.54 7.66 6.05 6.28 5.17 5 3.89 3.28 3.37 2.76 2.78 2.84 2.94 2.94
Book Value per Share 1.97 2.58 4.55 7.08 7.43 8.41 10.38 11.51 12.48 13.32 13.38 13.07 12.28 11.04 10.31

Compet2

Walmart Inc (NYS: WMT)
Exchange rate used is that of the Year End reported date
WMT
Profitability Ratios 01/31/2021 01/31/2020 01/31/2019 01/31/2018 01/31/2017 01/31/2016 01/31/2015 01/31/2014 01/31/2013 01/31/2012 01/31/2011 01/31/2010 01/31/2009 01/31/2008 01/31/2007
ROA % (Net) 5.51 6.53 3.15 4.89 6.83 7.29 8.01 7.86 8.55 8.39 9.33 8.58 8.17 8.09 7.8
ROE % (Net) 17.32 20.22 8.87 12.67 17.19 18.15 20.76 21 22.96 22.45 23.53 21.08 20.58 20.18 19.67
ROI % (Operating) 17.37 15.84 17.23 16.48 17.85 18.38 20.51 20.41 21.73 21.85 22.16 21.82 20.98 20.96 21.29
EBITDA Margin % 6.07 6.4 4.72 5.56 6.74 6.95 7.46 7.49 7.72 7.75 7.86 7.63 7.27 7.47 7.46
Calculated Tax Rate % 33.35 24.43 37.36 30.42 30.27 30.31 32.2 32.87 31.01 32.56 32.2 32.35 34.19 34.2 33.56
Revenue per Employee 242445 238165 233820 217540 210672 219150 220750 216497 212673 203159 200880 194388 192618 180380 183500
Liquidity Ratios 01/31/2021 01/31/2020 01/31/2019 01/31/2018 01/31/2017 01/31/2016 01/31/2015 01/31/2014 01/31/2013 01/31/2012 01/31/2011 01/31/2010 01/31/2009 01/31/2008 01/31/2007
Quick Ratio 0.26 0.2 0.18 0.16 0.19 0.22 0.24 0.2 0.2 0.2 0.21 0.22 0.2 0.16 0.2
Current Ratio 0.97 0.79 0.8 0.76 0.86 0.93 0.97 0.88 0.83 0.88 0.89 0.87 0.88 0.81 0.9
Net Current Assets % TA -1.02 -6.76 -7.1 -9.22 -4.65 -2.19 -0.98 -3.99 -5.85 -3.79 -3.65 -4.24 -3.94 -6.65 -3.42
Debt Management 01/31/2021 01/31/2020 01/31/2019 01/31/2018 01/31/2017 01/31/2016 01/31/2015 01/31/2014 01/31/2013 01/31/2012 01/31/2011 01/31/2010 01/31/2009 01/31/2008 01/31/2007
LT Debt to Equity 0.56 0.64 0.69 0.47 0.54 0.55 0.54 0.58 0.54 0.66 0.64 0.51 0.53 0.52 0.5
Total Debt to Equity 0.6 0.73 0.8 0.6 0.59 0.62 0.62 0.74 0.71 0.75 0.73 0.58 0.65 0.69 0.63
Interest Coverage 10.28 8.53 10.31 9.38 10.04 9.77 11.56 12.13 13.47 12.3 12.75 12.71 12 12.23 13.41
Asset Management 01/31/2021 01/31/2020 01/31/2019 01/31/2018 01/31/2017 01/31/2016 01/31/2015 01/31/2014 01/31/2013 01/31/2012 01/31/2011 01/31/2010 01/31/2009 01/31/2008 01/31/2007
Total Asset Turnover 2.28 2.3 2.43 2.48 2.43 2.39 2.38 2.34 2.36 2.39 2.4 2.44 2.47 2.41 2.41
Receivables Turnover 87.13 83.39 86.48 87.4 84.57 77.75 72.19 70.85 73.65 81.07 91.38 101.43 107.02 116.66 126.74
Inventory Turnover 9.4 8.9 8.75 8.6 8.26 8.06 8.11 8.08 8.34 8.7 9.08 9 8.79 8.32 8.02
Accounts Payable Turnover 11.6 11.14 11.04 11.43 12.13 12.54 12.81 12.62 12.53 12.74 13.18 13.77 13.66 12.96 13.04
Accrued Expenses Turnover 25.49 25.41 24.85 23.64 23.24 23.93 24.32 23.36 23.2 23.42 21.66 20.99 22.72 23.53 23.1
Property Plant & Equip Turnover 5.65 5 4.85 4.65 4.45 4.3 4.23 4.15 4.19 4.16 4.12 4.24 4.33 4.23 4.32
Cash & Equivalents Turnover 40.99 60.97 71.06 73.46 62.23 54.05 59.17 63.24 65.3 64.1 55.14 53.78 62.99 58.54 50.58
Per Share 01/31/2021 01/31/2020 01/31/2019 01/31/2018 01/31/2017 01/31/2016 01/31/2015 01/31/2014 01/31/2013 01/31/2012 01/31/2011 01/31/2010 01/31/2009 01/31/2008 01/31/2007
Cash Flow per Share 12.71 8.86 9.48 9.46 10.14 8.54 8.84 7.11 7.56 7.01 6.47 6.79 5.86 5.01 4.84
Book Value per Share 28.69 26.37 25.19 26.38 25.52 25.47 25.21 23.59 23.04 20.86 19.49 18.69 16.63 16.26 14.91

Compet3

Exchange rate used is that of the Year End reported date
Profitability Ratios 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
ROA % (Net)
ROE % (Net)
ROI % (Operating)
EBITDA Margin %
Calculated Tax Rate %
Revenue per Employee
Liquidity Ratios
Quick Ratio
Current Ratio
Net Current Assets % TA
Debt Management
LT Debt to Equity
Total Debt to Equity
Interest Coverage
Asset Management
Total Asset Turnover
Receivables Turnover
Inventory Turnover
Accounts Payable Turnover
Accrued Expenses Turnover
Property Plant & Equip Turnover
Cash & Equivalents Turnover
Per Share
Cash Flow per Share
Book Value per Share

asreported

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Lowe’s Companies Inc (NYS: LOW)
Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Cash & cash equivalents 4690000 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000
Short-term investments 506000 160000 218000 102000 100000 307000 125000 185000 125000 286000 471000 425000 416000 249000 432000
Merchandise inventory – net 16193000 13179000 12561000 11393000 10458000 9458000 8911000 9127000 8600000 8355000 8321000 8249000 8209000 7611000 7144000
Deferred income taxes, net 230000 252000 217000 183000 193000 208000 166000 247000 161000
Other current assets 937000 1263000 938000 689000 884000 391000 348000 341000 301000 234000 330000 218000 215000 298000 213000
Total current assets 22326000 15318000 14228000 12772000 12000000 10561000 10080000 10296000 9784000 10072000 9967000 9732000 9251000 8686000 8314000
Land 7315000 7200000 7196000 7414000 7329000 7086000 7040000 7016000 6986000 6936000 6742000 6519000 6144000 5566000 5496000
Buildings 12069000 11258000 10036000 9655000
Buildings & building improvements 18090000 17862000 18052000 18521000 18147000 17451000 17247000 17161000 16968000 16640000 16531000
Equipment 10466000 10377000 10090000 10475000 10978000 10863000 10426000 10063000 9780000 9835000 9142000 8826000 8797000 8118000 7477000
Leasehold improvements 3818000 3576000 3063000 2476000
Construction in progress 831000 506000 525000 530000 464000 513000 730000 834000 932000 921000 930000 1036000 1702000 2053000
Total cost 36702000 35945000 35863000 36940000 36918000 35913000 35443000 35074000 34666000 34332000 33345000 32268000 31477000 28836000 25104000
Less: accumulated depreciation 17547000 17276000 17431000 17219000 16969000 16336000 15409000 14240000 13189000 12362000 11256000 9769000 8755000 7475000 6133000
Property, less accumulated depreciation 19155000 18669000 18432000 19721000 19949000 19577000 20034000 20834000 21477000 21970000 22089000 22499000 22722000 21361000 18971000
Operating lease right-of-use assets 3832000 3891000
Long-term investments 200000 372000 256000 408000 366000 222000 354000 279000 271000 504000 1008000 277000 253000 509000 165000
Deferred income taxes – net 340000 216000 294000 168000 222000 241000
Goodwill 303000 303000 1307000 1082000
Other assets 882000 702000 995000 915000 789000 665000 1359000 1323000 1134000 1013000 635000 497000 460000 313000 317000
Total assets 46735000 39471000 34508000 35291000 34408000 31266000 31827000 32732000 32666000 33559000 33699000 33005000 32686000 30869000 27767000
Short-term borrowings 1941000 722000 1137000 510000 43000 386000 987000 1064000 23000
Current maturities of long-term debt 1112000 597000 1110000 294000 795000 1061000 552000 49000 47000 592000 36000 552000 34000 40000 88000
Current operating lease liabilities 541000 501000
Accounts payable 10884000 7659000 8279000 6590000 6651000 5633000 5124000 5008000 4657000 4352000 4351000 4287000 4109000 3713000 3524000
Accrued salaries & wages 424000 372000
Accrued compensation & employee benefits 1350000 684000 662000 747000 790000 820000 773000 785000 670000 613000 667000 577000 434000
Self-insurance liabilities 751000 671000 650000
Deferred revenue 1608000 1219000 1299000 1378000 1253000 1078000 979000 892000 824000 801000 707000 683000 674000 717000 731000
Accrued dividends 440000 420000 385000 340000 304000 255000 222000 186000 178000 174000
Self-insurance liabilities 435000 501000 378000 347000 327000 343000 346000 324000 316000 318000
Sales return reserve 252000 194000 194000
Sales tax liabilities 256000 153000 184000 184000 210000 140000 131000 122000 104000 158000
Accrued interest 250000 221000 179000 144000 194000 179000 165000 153000 136000 126000
Income taxes payable 168000
Accrued property taxes 120000 104000 108000 109000 108000 111000 124000 121000 112000 102000
Other current liabilities 1314000 988000 997000 826000 832000 829000 932000 850000 664000 655000
Other current liabilities 3235000 2581000 2425000 1950000 1975000 1857000 1920000 1756000 1510000 1533000
Other current liabilities 1358000 1256000 1033000 1122000 1151000
Total current liabilities 18730000 15182000 14497000 12096000 11974000 10492000 9348000 8876000 7708000 7891000 7119000 7355000 8022000 7751000 6539000
Secured mortgage notes 5000 5000 6000 6000 7000 7000 16000 17000 19000 20000 17000 35000 27000 33000 30000
Unsecured debt – notes 21121000 16648000 14721000 14961000 14321000 12073000 10860000 9617000 8627000 7189000 6192000 500000 500000 499000 498000
Debentures 694000 694000 694000 693000
Medium-term notes 232000 232000 237000 27000
Senior notes 3276000 3273000 3271000 267000
Convertible notes 511000 1980000
Convertible subordinated notes 518000
Finance or capitalized lease obligations 654000 712000 774000 891000 861000 526000 491000 501000 431000 418000 364000
Capital leases & other long-term debt 343000 347000 371000 400000
Total long-term debt 21780000 17365000 15501000 15858000 15189000 12606000 11367000 10135000 9077000 7627000 6573000 5080000 5073000 5616000 4413000
Less: current maturities 1112000 597000 1110000 294000 795000 1061000 552000 49000 47000 592000 36000 552000 34000 40000 88000
Long-term debt, excluding current maturities 20668000 16768000 14391000 15564000 14394000 11545000 10815000 10086000 9030000 7035000 6537000 4528000 5039000 5576000 4325000
Noncurrent operating lease liabilities 3890000 3943000
Deferred income taxes – net 97000 291000 455000 531000 467000 598000 660000 670000 735000
Deferred revenue – extended protection plans 1019000 894000 827000 803000 763000 729000 730000 730000 715000 704000 631000
Other liabilities 991000 712000 1149000 955000 843000 846000 869000 896000 901000 865000 833000 1455000 910000 774000 443000
Total liabilities 45298000 37499000 30864000 29418000 27974000 23612000 21859000 20879000 18809000 17026000 15587000 13936000 14631000 14771000 12042000
Common stock 366000 381000 401000 415000 433000 455000 480000 515000 555000 621000 677000 729000 735000 729000 762000
Capital in excess of par value 90000 22000 26000 14000 11000 6000 277000 16000 102000
Retained earnings (accumulated deficit) 1117000 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000
Accumulated other comprehensive income (loss) -136000 -136000 -209000 11000 -240000 -394000 -103000 -17000 52000 46000 53000 27000 -6000 8000 1000
Total shareholders’ equity (deficit) 1437000 1972000 3644000 5873000 6434000 7654000 9968000 11853000 13857000 16533000 18112000 19069000 18055000 16098000 15725000
As Reported Annual Income Statement
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Net sales 89597000 72148000 71309000 68619000 65017000 59074000 56223000 53417000 50521000 50208000 48815000 47220000 48230000 48283000 46927000
Cost of sales 60025000 49205000 48401000 45210000 42553000 38504000 36665000 34941000 33194000 32858000 31663000 30757000 31729000 31556000 30729000
Gross margin 29572000 22943000 22908000 23409000 22464000 20570000 19558000 18476000 17327000 17350000 17152000 16463000 16501000 16727000 16198000
Selling, general & administrative expenses 18526000 15367000 17413000 15376000 15129000 14115000 13281000 12865000 12244000 12593000 12006000 11688000 11074000 10515000 9738000
Store opening costs 49000 102000 141000 146000
Depreciation 1484000 1485000 1462000 1523000 1480000 1586000 1614000 1539000 1366000 1162000
Depreciation & amortization expenses 1399000 1262000 1477000 1447000 1489000
Operating income (loss) 9647000 6314000 4018000 6586000 5846000
Interest expense on long-term debt 807000 668000 582000 582000 583000 505000 470000 431000 418000 341000 312000 293000 292000 247000 183000
Interest expense on lease obligations 32000
Interest expense on short-term borrowings 13000 2000 11000
Interest expense on capitalized lease obligations 30000 58000 56000 53000 42000 42000 40000 37000 38000 35000 32000 31000 32000 34000
Interest income 24000 27000 28000 16000 12000 4000 6000 4000 9000 12000 12000 17000 40000 45000 52000
Interest capitalized 1000 3000 5000 4000 3000 2000 4000 4000 10000 14000 19000 36000 65000 32000
Interest on tax uncertainties 3000 -3000 2000 -1000 -1000 6000 -27000 8000 7000 -9000
Other interest expense 20000 21000 12000 19000 23000 13000 13000 7000 8000 6000 4000 5000 22000 25000 21000
Interest – net -848000 -691000 -624000 -633000 -645000 -552000 -516000 -476000 -423000 -371000 -332000 -287000 -280000 -194000 -154000
Gain (loss) on extinguishment of debt -1060000 -464000
Total expenses 16151000 15282000 14803000 14190000 14444000 13924000 13638000 12995000 12216000 11200000
Pre-tax earnings (losses) 7739000 5623000 3394000 5489000 5201000 4419000 4276000 3673000 3137000 2906000 3228000 2825000 3506000 4511000 4998000
Current provision (benefit) for income taxes – federal 1578000 935000 963000 1734000 1824000 1688000 1475000 1342000 1162000 891000 1171000 1046000 1070000 1495000 1657000
Current provision (benefit) for income taxes – state 425000 268000 274000 252000 275000 248000 221000 203000 155000 124000 188000 123000 166000 207000 242000
Total current provision (benefit) for income taxes 2003000 1203000 1237000 1986000 2099000 1936000 1696000 1545000 1317000 1015000 1359000 1169000 1236000 1702000 1899000
Deferred provision (benefit) for income taxes – federal -73000 121000 -102000 60000 6000 -59000 -112000 -133000 -133000 50000 -117000 -108000 82000 -1000 -11000
Deferred provision (benefit) for income taxes – state -26000 18000 -55000 -4000 3000 -4000 -6000 -25000 -6000 2000 -24000 -19000 -7000 1000 5000
Total deferred provision (benefit) of deferred income taxes -99000 139000 -157000 56000 9000 -63000 -118000 -158000 -139000 52000 -141000 -127000 75000 -6000
Income tax provision (benefit) 1904000 1342000 1080000 2042000 2108000 1873000 1578000 1387000 1178000 1067000 1218000 1042000 1311000 1702000 1893000
Net earnings (loss) 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Less: net earnings allocable to participating securities 24000 13000 7000 11000 11000 12000 16000 16000 14000 15000 17000 13000
Less: Premium paid to acquire noncontrolling interest 18000
Net earnings (loss) allocable to common shares 5811000 4268000 2307000 3436000 3062000 2534000 2682000 2270000 1945000 1824000 1993000 1770000
Weighted average shares outstanding – basic 748000 777000 811000 839000 880000 927000 988000 1059000 1150000 1271000 1401000 1462000 1457000 1481000 1535000
Weighted average shares outstanding – diluted 750000 778000 812000 840000 881000 929000 990000 1061000 1152000 1273000 1403000 1464000 1472000 1510000 1566000
Year end shares outstanding 731000 763000 801000 830000 866000 910000 960000 1030000 1110000 1241000 1354000 1459000 1470000 1458000 1524500
Net earnings (loss) per common share – basic 7.77 5.49 2.84 4.09 3.48 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.51 1.9 2.02
Net earnings (loss) per common share – diluted 7.75 5.49 2.84 4.09 3.47 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.49 1.86 1.99
Cash dividends per share 2.3 2.13 1.85 1.58 1.33 1.07 0.87 0.7 0.62 0.53 0.42 0.355 0.335 0.29 0.18
Number of full time employees 220000 200000 190000 200000 190000 180000 175000 167000 160000 161000 161000 166000 164000 160000 157000
Number of part time employees 120000 120000 110000 110000 100000 90000 91000 95000 85000 87000 73000 73000 65000 56000 53000
Number of common stockholders 21657 22129 22326 22926 23575 24337 25065 25932 27259 28727 29962 31041 31701 31941 31770
Foreign currency translation adjustments 78000 94000 -221000 251000 154000 -291000
As Reported Annual Retained Earnings
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Previous retained earnings (accumulated deficit) 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000 12191000
Cumulative effect of accounting change -263000 33000 -8000
Cash dividends declared 1724000 1653000 1500000 1324000 1169000 991000 858000 741000 708000 672000 588000 522000 491000 428000 276000
Repurchases of common stock 4721000 4090000 2820000 2939000 3274000 3553000 3604000 3414000 3879000 2686000 2358000 3000 1888000 160000
Retained earnings (accumulated deficit) 1117000 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000
As Reported Annual Cash Flow
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Net earnings (loss) 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Depreciation & amortization 1594000 1410000 1607000 1540000 1590000 1587000 1586000 1562000 1623000 1579000 1684000 1733000 1667000 1464000 1237000
Noncash lease expense 479000 468000
Deferred income taxes -108000 177000 -151000 53000 28000 -68000 -124000 -162000 -140000 54000 -133000 -123000 69000 2000 -6000
Loss (gain) on disposition or writedown (write-back) of fixed & other assets 51000 23000
Loss (gain) on property & other assets – net 139000 117000 630000 40000 143000 33000 25000 64000 83000 456000 103000 193000 89000
Impairment of goodwill 952000
Loss (gain) on extinguishment of debt 1060000 464000
Loss on equity method investments 591000 57000 52000 48000
Loss (gain) on cost method & equity method investments 12000 9000 -82000 302000
Loss on redemption of long-term debt 8000
Transaction loss from exchange rate changes 3000
Share-based payment expense 155000 98000 74000 99000 90000 117000 119000 100000 100000 107000 115000 102000 95000 99000 62000
Merchandise inventory – net -2967000 -600000 -1289000 -791000 -178000 -582000 170000 -396000 -244000 -33000 -64000 -28000 -611000 -464000 -509000
Other operating assets 326000 -376000 -110000 250000 -183000 -34000 83000 -5000 -87000 137000 -142000 7000 31000 -64000 -135000
Accounts payable 3211000 -637000 1720000 -92000 653000 524000 127000 291000 303000 -5000 60000 175000 402000 185000 692000
Deferred revenue 512000
Other operating liabilities 813000 -654000 437000 137000 79000 70000 188000 319000 117000 215000 219000 212000 174000 265000 33000
Net cash flows from operating activities 11049000 4296000 6193000 5065000 5617000 4784000 4929000 4111000 3762000 4349000 3852000 4054000 4122000 4347000 4502000
Purchases of short-term investments -344000 -210000 -920000 -284000
Purchases of investments -3094000 -743000 -1373000 -981000 -1192000 -934000 -820000 -759000 -1444000 -1433000 -2605000
Proceeds from sale or maturity of investments 2926000 695000 1393000 1114000 1254000 884000 805000 709000 1837000 2120000 1822000
Proceeds from sale or maturity of short-term investments 624000 431000 1183000 572000
Purchases of long-term investments -1483000 -1148000 -1588000 -558000
Proceeds from sale or maturity of long-term investments 1160000 994000 1162000 415000
Decrease (increase) in other long-term assets -97000 -62000 -56000 -7000 -16000
Property acquired -1829000 -1329000 -1799000 -3266000 -4010000 -3916000
Capital expenditures -1791000 -1484000 -1174000 -1123000 -1167000 -1197000 -880000 -940000 -1211000
Contributions to equity method investments – net -125000 -241000 -173000 -219000 -232000
Proceeds from sale of property & other long-term assets 90000 163000 76000 45000 37000 57000 52000 75000 130000 52000 25000 18000 29000 57000 72000
Purchases of derivative instruments -103000
Proceeds from settlement of derivative instruments 179000
Acquisition of business – net -509000 -2356000 -203000
Other investing activities – net -25000 -2000 13000 -13000 -28000 -4000 5000 4000 -115000
Net cash flows from investing activities -1894000 -1369000 -1080000 -1441000 -3361000 -1343000 -1088000 -1286000 -903000 -1437000 -2184000 -1886000 -3226000 -4123000 -3715000
Net change in commercial paper -941000 220000
Net change in short-term borrowings -415000 625000 466000 43000 -386000 386000 -1007000 -57000 1041000 23000
Net proceeds from issuance of debt 7929000 3972000 2968000 3267000 1718000 1239000 985000 1984000 993000 1985000 10000 15000 1296000 989000
Repayment of debt -5618000 -1113000 -326000 -2849000 -1173000 -552000 -48000 -47000 -591000 -37000 -552000 -37000 -573000 -96000 -33000
Proceeds from issuance of common stock under share-based payment plans 152000 118000 114000 139000 139000 125000 137000 165000 349000 100000 104000 75000 76000 80000 76000
Proceeds from issuance of common stock from stock options exercised 53000 98000 69000 100000
Cash dividend payments -1704000 -1618000 -1455000 -1288000 -1121000 -957000 -822000 -733000 -704000 -647000 -571000 -391000 -491000 -428000 -276000
Repurchases of common stock -4971000 -4313000 -3037000 -3192000 -3595000 -3925000 -3905000 -3710000 -4393000 -2937000 -2618000 -504000 -8000 -2275000 -1737000
Excess tax benefits of share-based payments 1000 1000 6000 12000
Other financing activities – net -38000 -1000 -5000 -10000 -75000 55000 24000 -15000 22000 -21000
Net cash flows from financing activities -5191000 -2735000 -5124000 -3607000 -2092000 -3493000 -3761000 -2969000 -3333000 -2549000 -1651000 -1801000 -939000 -307000 -846000
Effect of exchange rate changes on cash 10000 1000 -12000 13000 -11000 -9000 -5000 -6000 1000 -1000 3000 20000 7000
Net increase (decrease) in cash & cash equivalents, including cash classified within current assets held for sale 3974000 193000 -23000
Net increase (decrease) in cash & cash equivalents 3974000 205000 -77000 30000 153000 -61000 75000 -150000 -473000 362000 20000 387000 -36000 -83000 -59000
Less: net increase (decrease) in cash classified within current assets held for sale 12000 -54000
Cash & cash equivalents, beginning of year 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000 423000
Cash & cash equivalents, end of year 4690000 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000
Cash paid for interest, net of amount capitalized 824000 671000 635000 654000 619000 535000 504000 454000 444000 361000 319000 314000 309000 198000 179000
Cash paid for income taxes, net 1588000 1423000 1316000 1673000 2217000 2055000 1534000 1505000 1404000 914000 1590000 1157000 1138000 1725000 2031000

standardized

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Lowe’s Companies Inc (NYS: LOW)
Exchange rate used is that of the Year End reported date
Standardized Annual Balance Sheet
Report Date 1/29/21 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Cash & Equivalents 4690000 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000
Short Term Investments 506000 160000 218000 102000 100000 307000 125000 185000 125000 286000 471000 425000 416000 249000 432000
Cash & Equivs & ST Investments 5196000 876000 729000 690000 658000 712000 591000 576000 666000 1300000 1123000 1057000 661000 530000 796000
Receivables (ST) 0 0 0 0 0 0 0 0 0
Inventories 16193000 13179000 12561000 11393000 10458000 9458000 8911000 9127000 8600000 8355000 8321000 8249000 8209000 7611000 7144000
Current Tax Assets 230000 252000 217000 183000 193000 208000 166000 247000 161000
Other Current Assets 937000 1263000 938000 689000 884000 391000 348000 341000 301000 234000 330000 218000 215000 298000 213000
Total Current Assets 22326000 15318000 14228000 12772000 12000000 10561000 10080000 10296000 9784000 10072000 9967000 9732000 9251000 8686000 8314000
Gross Property Plant & Equip 36702000 35945000 35863000 36940000 36918000 35913000 35443000 35074000 34666000 34332000 33345000 32268000 31477000 28836000 25104000
Accumulated Depreciation 17547000 17276000 17431000 17219000 16969000 16336000 15409000 14240000 13189000 12362000 11256000 9769000 8755000 7475000 6133000
Net Property Plant & Equip 19155000 18669000 18432000 19721000 19949000 19577000 20034000 20834000 21477000 21970000 22089000 22499000 22722000 21361000 18971000
Long Term Investments 200000 372000 256000 408000 366000 222000 354000 279000 271000 504000 1008000 277000 253000 509000 165000
Intangible Assets 303000 303000 1307000 1082000
Deferred LT Assets 340000 216000 294000 168000 222000 241000
Other Assets 4714000 4593000 995000 915000 789000 665000 1359000 1323000 1134000 1013000 635000 497000 460000 313000 317000
Total Assets 46735000 39471000 34508000 35291000 34408000 31266000 31827000 32732000 32666000 33559000 33699000 33005000 32686000 30869000 27767000
Accounts Payable & Accrued Exps 13044000 9088000 9613000 7930000 8047000 6998000 6408000 6253000 5753000 5367000 5018000 4864000 4543000 4137000 3896000
Accounts Payable 10884000 7659000 8279000 6590000 6651000 5633000 5124000 5008000 4657000 4352000 4351000 4287000 4109000 3713000 3524000
Accrued Expenses 2160000 1429000 1334000 1340000 1396000 1365000 1284000 1245000 1096000 1015000 667000 577000 434000 424000 372000
Current Debt 1112000 2538000 1832000 1431000 1305000 1104000 552000 435000 47000 592000 36000 552000 1021000 1104000 111000
Other Current Liabilities 4574000 3556000 3052000 2735000 2622000 2390000 2388000 2188000 1908000 1932000 2065000 1939000 2458000 2510000 2532000
Total Current Liabilities 18730000 15182000 14497000 12096000 11974000 10492000 9348000 8876000 7708000 7891000 7119000 7355000 8022000 7751000 6539000
LT Debt & Leases 20668000 16768000 14391000 15564000 14394000 11545000 10815000 10086000 9030000 7035000 6537000 4528000 5039000 5576000 4325000
Deferred LT Liabilities 1019000 894000 827000 803000 763000 729000 827000 1021000 1170000 1235000 1098000 598000 660000 670000 735000
Minority Interests 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Liabilities 4881000 4655000 1149000 955000 843000 846000 869000 896000 901000 865000 833000 1455000 910000 774000 443000
Total Liabilities 45298000 37499000 30864000 29418000 27974000 23612000 21859000 20879000 18809000 17026000 15587000 13936000 14631000 14771000 12042000
Common Share Capital 366000 381000 401000 415000 433000 455000 480000 515000 555000 621000 677000 729000 735000 729000 762000
Additional Paid-In Capital 90000 22000 26000 14000 11000 6000 277000 16000 102000
Retained Earnings 1117000 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000
Accum Other Comprehensive Income -136000 -136000 -209000 11000 -240000 -394000 -103000 -17000 52000 46000 53000 27000 -6000 8000 1000
Other Equity 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Equity 1437000 1972000 3644000 5873000 6434000 7654000 9968000 11853000 13857000 16533000 18112000 19069000 18055000 16098000 15725000
Total Liabilities & Equity 46735000 39471000 34508000 35291000 34408000 31266000 31827000 32732000 32666000 33559000 33699000 33005000 32686000 30869000 27767000
Standardized Annual Income Statement
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Sales Revenue 89597000 72148000 71309000 68619000 65017000 59074000 56223000 53417000 50521000 50208000 48815000 47220000 48230000 48283000 46927000
Total Revenue 89597000 72148000 71309000 68619000 65017000 59074000 56223000 53417000 50521000 50208000 48815000 47220000 48230000 48283000 46927000
Direct Costs 60025000 49205000 48401000 45210000 42553000 38504000 36665000 34941000 33194000 32858000 31663000 30757000 31729000 31556000 30729000
Gross Profit 29572000 22943000 22908000 23409000 22464000 20570000 19558000 18476000 17327000 17350000 17152000 16463000 16501000 16727000 16198000
Selling General & Admin 18526000 15367000 17413000 15376000 15129000 14115000 13281000 12865000 12244000 12593000 12006000 11688000 11074000 10515000 9738000
Depreciation & Amortization 1399000 1262000 1477000 1447000 1489000 1484000 1485000 1462000 1523000 1480000 1586000 1614000 1539000 1366000 1162000
Other Operating Expense 0 0 0 0 0 0 0 0 0 0 0 49000 102000 141000 146000
Total Indirect Operating Costs 19925000 16629000 18890000 16823000 16618000 15599000 14766000 14327000 13767000 14073000 13592000 13351000 12715000 12022000 11046000
Operating Income 9647000 6314000 4018000 6586000 5846000 4971000 4792000 4149000 3560000 3277000 3560000 3112000 3786000 4705000 5152000
Interest Income -848000 -691000 -624000 -633000 -645000 -552000 -516000 -476000 -423000 -371000 -332000 -287000 -280000 -194000 -154000
Other Non-Operating Income -1060000 0 0 -464000 0 0 0 0 0 0 0 0 0 0 0
Total Non-Operating Income -1908000 -691000 -624000 -1097000 -645000 -552000 -516000 -476000 -423000 -371000 -332000 -287000 -280000 -194000 -154000
Earnings Before Tax 7739000 5623000 3394000 5489000 5201000 4419000 4276000 3673000 3137000 2906000 3228000 2825000 3506000 4511000 4998000
Taxation 1904000 1342000 1080000 2042000 2108000 1873000 1578000 1387000 1178000 1067000 1218000 1042000 1311000 1702000 1893000
Extraordinary Items 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Accounting Changes 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Income 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Preference Dividends & Similar -24000 -13000 -7000 -11000 -29000 -12000 -16000 -16000 -14000 -15000 -17000 -13000 0 0 0
Net Income to Common 5811000 4268000 2307000 3436000 3062000 2534000 2682000 2270000 1945000 1824000 1993000 1770000 2195000 2809000 3105000
Average Shares Basic 748000 777000 811000 839000 880000 927000 988000 1059000 1150000 1271000 1401000 1462000 1457000 1481000 1535000
EPS Net Basic 7.77 5.49 2.84 4.09 3.48 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.51 1.9 2.02
EPS Continuing Basic 7.77 5.49 2.84 4.09 3.48 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.51 1.9 2.02
Average Shares Diluted 750000 778000 812000 840000 881000 929000 990000 1061000 1152000 1273000 1403000 1464000 1472000 1510000 1566000
EPS Net Diluted 7.75 5.49 2.84 4.09 3.47 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.49 1.86 1.99
EPS Continuing Diluted 7.75 5.49 2.84 4.09 3.47 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.49 1.86 1.99
Shares Outstanding 731000 763000 801000 830000 866000 910000 960000 1030000 1110000 1241000 1354000 1459000 1470000 1458000 1524500
Standardized Annual Retained Earnings
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Retained Earnings at Start 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000 12191000
Retained Earnings at End 1117000 1727000 3452000 5425000 6241000 7593000 9591000 11355000 13224000 15852000 17371000 18307000 17049000 15345000 14860000
Standardized Annual Cash Flows
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Net Income 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Adjustments from Inc to Cash 3319000 2282000 3121000 2114000 2153000 2260000 1663000 1616000 1714000 2196000 1769000 1905000 1931000 1616000 1316000
Change in Working Capital 1895000 -2267000 758000 -496000 371000 -22000 568000 209000 89000 314000 73000 366000 -4000 -78000 81000
Cash Flow from Operations 11049000 4296000 6193000 5065000 5617000 4784000 4929000 4111000 3762000 4349000 3852000 4054000 4122000 4347000 4502000
Purchase of Pty Plant & Equip -1791000 -1484000 -1174000 -1123000 -1167000 -1197000 -880000 -940000 -1211000 -1829000 -1329000 -1799000 -3266000 -4010000 -3916000
Purchase of Investments -3094000 -743000 -1373000 -981000 -1192000 -1059000 -1061000 -932000 -1663000 -1665000 -2605000 -1827000 -1358000 -2508000 -842000
Disposal of Investments 2926000 695000 1393000 1114000 1254000 884000 805000 709000 1837000 2120000 1822000 1784000 1425000 2345000 987000
Change in Business Activities -509000 -2356000 -203000
Other Investing Cash Flows 65000 163000 74000 58000 100000 29000 48000 80000 134000 -63000 -72000 -44000 -27000 50000 56000
Cash Flow from Investing -1894000 -1369000 -1080000 -1441000 -3361000 -1343000 -1088000 -1286000 -903000 -1437000 -2184000 -1886000 -3226000 -4123000 -3715000
Change in ST Debt -941000 220000 -415000 625000 466000 43000 -386000 386000 -1007000 -57000 1041000 23000
Change in LT Debt 2311000 2859000 -326000 119000 2094000 1166000 1191000 938000 1393000 956000 1433000 -27000 -558000 1200000 956000
Change in Equity -4819000 -4195000 -2923000 -3053000 -3456000 -3800000 -3768000 -3545000 -4044000 -2837000 -2513000 -376000 167000 -2120000 -1549000
Payment of Dividends -1704000 -1618000 -1455000 -1288000 -1121000 -957000 -822000 -733000 -704000 -647000 -571000 -391000 -491000 -428000 -276000
Other Financing Cash Flows -38000 -1000 -5000 -10000 -75000 55000 24000 -15000 22000 -21000 0 0 0 0 0
Cash Flow from Financing -5191000 -2735000 -5124000 -3607000 -2092000 -3493000 -3761000 -2969000 -3333000 -2549000 -1651000 -1801000 -939000 -307000 -846000
Effect of Exchange Rate 10000 1000 -12000 13000 -11000 -9000 -5000 -6000 1000 -1000 3000 20000 7000
Cash from Discontinued Ops 12000 -54000
Change in Cash 3974000 205000 -77000 30000 153000 -61000 75000 -150000 -473000 362000 20000 387000 -36000 -83000 -59000
Opening Cash 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000 423000
Closing Cash 4690000 716000 511000 588000 558000 405000 466000 391000 541000 1014000 652000 632000 245000 281000 364000
Depn & Amortn (CF) 1594000 1410000 1607000 1540000 1590000 1587000 1586000 1562000 1623000 1579000 1684000 1733000 1667000 1464000 1237000
Net Purch of Pty Plant & Equip -1791000 -1484000 -1174000 -1123000 -1167000 -1197000 -880000 -940000 -1211000 -1829000 -1329000 -1799000 -3266000 -4010000 -3916000
Standardized Annual CS Balance Sheet
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Cash & Equivalents %TA 10.035 1.814 1.481 1.666 1.622 1.295 1.464 1.195 1.656 3.022 1.935 1.915 0.750 0.910 1.311
Short Term Investments %TA 1.083 0.405 0.632 0.289 0.291 0.982 0.393 0.565 0.383 0.852 1.398 1.288 1.273 0.807 1.556
Cash & Equivs & ST Investments %TA 11.118 2.219 2.113 1.955 1.912 2.277 1.857 1.760 2.039 3.874 3.332 3.203 2.022 1.717 2.867
Receivables (ST) %TA 0 0 0 0 0 0 0 0 0
Inventories %TA 34.649 33.389 36.400 32.283 30.394 30.250 27.998 27.884 26.327 24.896 24.692 24.993 25.115 24.656 25.728
Current Tax Assets %TA 0.723 0.770 0.664 0.545 0.573 0.630 0.508 0.800 0.580
Other Current Assets %TA 2.005 3.200 2.718 1.952 2.569 1.251 1.093 1.042 0.921 0.697 0.979 0.661 0.658 0.965 0.767
Total Current Assets %TA 47.771 38.808 41.231 36.191 34.876 33.778 31.671 31.455 29.952 30.013 29.577 29.486 28.303 28.138 29.942
Gross Property Plant & Equip %TA 78.532 91.067 103.927 104.673 107.295 114.863 111.361 107.155 106.123 102.303 98.950 97.767 96.301 93.414 90.409
Accumulated Depreciation %TA 37.546 43.769 50.513 48.791 49.317 52.248 48.415 43.505 40.375 36.837 33.402 29.599 26.785 24.215 22.087
Net Property Plant & Equip %TA 40.986 47.298 53.414 55.881 57.978 62.614 62.947 63.650 65.747 65.467 65.548 68.168 69.516 69.199 68.322
LT Investments %TA 0.428 0.942 0.742 1.156 1.064 0.710 1.112 0.852 0.830 1.502 2.991 0.839 0.774 1.649 0.594
Intangible Assets %TA 0.768 0.878 3.703 3.145
Deferred LT Assets %TA 0.728 0.547 0.852 0.476 0.645 0.771
Other Assets %TA 10.087 11.636 2.883 2.593 2.293 2.127 4.270 4.042 3.471 3.019 1.884 1.506 1.407 1.014 1.142
Total Assets as 100% 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Accounts Payable & Accrued Exps %TA 27.911 23.024 27.857 22.470 23.387 22.382 20.134 19.104 17.612 15.993 14.891 14.737 13.899 13.402 14.031
Accounts Payable %TA 23.289 19.404 23.992 18.673 19.330 18.016 16.100 15.300 14.256 12.968 12.911 12.989 12.571 12.028 12.691
Accrued Expenses %TA 4.622 3.620 3.866 3.797 4.057 4.366 4.034 3.804 3.355 3.025 1.979 1.748 1.328 1.374 1.340
Current Debt %TA 2.379 6.430 5.309 4.055 3.793 3.531 1.734 1.329 0.144 1.764 0.107 1.672 3.124 3.576 0.400
Other Current Liabilities %TA 9.787 9.009 8.844 7.750 7.620 7.644 7.503 6.685 5.841 5.757 6.128 5.875 7.520 8.131 9.119
Total Current Liabilities %TA 40.077 38.464 42.011 34.275 34.800 33.557 29.371 27.117 23.596 23.514 21.125 22.285 24.543 25.109 23.550
LT Debt & Lease %TA 44.224 42.482 41.703 44.102 41.833 36.925 33.981 30.814 27.643 20.963 19.398 13.719 15.416 18.063 15.576
Deferred LT Liabilities %TA 2.180 2.265 2.397 2.275 2.218 2.332 2.598 3.119 3.582 3.680 3.258 1.812 2.019 2.170 2.647
Minority Interests %TA 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Liabilities %TA 10.444 11.793 3.330 2.706 2.450 2.706 2.730 2.737 2.758 2.578 2.472 4.408 2.784 2.507 1.595
Total Liabilities %TA 96.925 95.004 89.440 83.358 81.301 75.520 68.681 63.788 57.580 50.735 46.254 42.224 44.762 47.851 43.368
Common Share Capital %TA 0.783 0.965 1.162 1.176 1.258 1.455 1.508 1.573 1.699 1.850 2.009 2.209 2.249 2.362 2.744
Additional Paid-In Capital %TA 0.193 0.062 0.080 0.042 0.033 0.018 0.847 0.052 0.367
Retained Earnings %TA 2.390 4.375 10.003 15.372 18.138 24.285 30.135 34.691 40.482 47.236 51.548 55.467 52.160 49.710 53.517
Accum Other Comprehens Income %TA -0.291 -0.345 -0.606 0.031 -0.698 -1.260 -0.324 -0.052 0.159 0.137 0.157 0.082 -0.018 0.026 0.004
Other Equity %TA 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Equity %TA 3.075 4.996 10.560 16.642 18.699 24.480 31.319 36.212 42.420 49.265 53.746 57.776 55.238 52.149 56.632
Total Liabilities & Equity %TA 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Standardized Annual CS Income Statement
Report Date 01/29/2021 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Currency USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Sales Revenue %TR 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Total Revenue (100% TR) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Direct Costs %TR 66.994 68.200 67.875 65.886 65.449 65.179 65.214 65.412 65.703 65.444 64.863 65.136 65.787 65.356 65.483
Gross Profit %TR 33.006 31.800 32.125 34.114 34.551 34.821 34.786 34.588 34.297 34.556 35.137 34.864 34.213 34.644 34.517
Selling General & Admin %TR 20.677 21.299 24.419 22.408 23.269 23.894 23.622 24.084 24.235 25.082 24.595 24.752 22.961 21.778 20.751
Depreciation & Amortization %TR 1.561 1.749 2.071 2.109 2.290 2.512 2.641 2.737 3.015 2.948 3.249 3.418 3.191 2.829 2.476
Other Operating Expense %TR 0 0 0 0 0 0 0 0 0 0 0 0.104 0.211 0.292 0.311
Total Indirect Operating Costs %TR 22.238 23.048 26.490 24.517 25.559 26.406 26.263 26.821 27.250 28.029 27.844 28.274 26.363 24.899 23.539
Operating Income %TR 10.767 8.751 5.635 9.598 8.991 8.415 8.523 7.767 7.047 6.527 7.293 6.590 7.850 9.745 10.979
Interest Income %TR -0.946 -0.958 -0.875 -0.922 -0.992 -0.934 -0.918 -0.891 -0.837 -0.739 -0.680 -0.608 -0.581 -0.402 -0.328
Other Non-Operating Income %TR -1.183 0 0 -0.676 0 0 0 0 0 0 0 0 0 0 0
Total Non-Operating Income %TR -2.130 -0.958 -0.875 -1.599 -0.992 -0.934 -0.918 -0.891 -0.837 -0.739 -0.680 -0.608 -0.581 -0.402 -0.328
Earnings Before Tax %TR 8.638 7.794 4.760 7.999 7.999 7.480 7.605 6.876 6.209 5.788 6.613 5.983 7.269 9.343 10.651
Taxation %TR 2.125 1.860 1.515 2.976 3.242 3.171 2.807 2.597 2.332 2.125 2.495 2.207 2.718 3.525 4.034
Extraordinary Items %TR 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Accounting Changes %TR 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Income %TR 6.512 5.934 3.245 5.023 4.757 4.310 4.799 4.280 3.878 3.663 4.118 3.776 4.551 5.818 6.617
Preference Dividends & Similar %TR -0.027 -0.018 -0.010 -0.016 -0.045 -0.020 -0.028 -0.030 -0.028 -0.030 -0.035 -0.028 0 0 0
Net Income to Common %TR 6.486 5.916 3.235 5.007 4.710 4.290 4.770 4.250 3.850 3.633 4.083 3.748 4.551 5.818 6.617

Ind ratios

Average of firm & competitors
Exchange rate used is that of the Year End reported date
Profitability Ratios 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
ROA % (Net) 13.42 13.94 11.51 11.53 11.59 10.81 10.73 9.37 8.47 7.81 7.88 6.84 6.80 8.88 10.54
ROE % (Net) 4820.14 86.55 28.82 122.64 70.08 45.67 34.60 24.82 20.30 18.02 17.29 15.02 15.41 19.37 20.87
ROI % (Operating) 38.02 34.56 30.28 32.67 31.14 28.64 27.18 23.90 21.19 19.45 19.02 17.09 17.22 21.32 25.71
EBITDA Margin % 11.00 11.16 9.53 11.04 11.44 11.10 11.12 10.62 10.14 9.69 9.84 9.21 9.03 10.62 11.21
Calculated Tax Rate % 27.39 23.97 30.93 34.87 35.70 36.37 35.17 35.68 35.25 35.10 35.54 34.48 35.73 36.11 36.52
Revenue per Employee 256372.33 243377.00 243308.67 228163.67 221625.33 223031.67 219168.33 212485.00 211919.00 205198.00 207491.67 200611.67 208602.67 211477.00 219271.33
Liquidity Ratios 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
Quick Ratio 0.34 0.16 0.15 0.19 0.19 0.21 0.19 0.19 0.21 0.23 0.18 0.20 0.14 0.12 0.21
Current Ratio 1.13 0.96 0.96 1.00 1.04 1.10 1.14 1.15 1.15 1.24 1.21 1.18 1.08 1.03 1.19
Net Current Assets % TA 4.73 -1.21 -1.25 -0.38 1.26 2.84 3.81 3.84 3.34 5.14 4.39 3.87 1.73 0.27 4.22
Debt Management 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
LT Debt to Equity 8.60 4.57 2.32 6.60 2.65 1.79 1.14 0.87 0.57 0.56 0.49 0.40 0.45 0.50 0.42
Total Debt to Equity 9.02 5.26 2.63 7.36 2.83 1.88 1.20 0.94 0.66 0.60 0.54 0.45 0.54 0.62 0.46
Interest Coverage 11.91 10.57 10.90 11.57 11.15 11.47 14.03 11.32 12.05 10.79 11.26 9.80 10.40 16.04 24.45
Asset Management 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
Total Asset Turnover 2.18 2.19 2.29 2.25 2.20 2.14 2.07 1.97 1.90 1.87 1.85 1.83 1.89 1.88 2.03
Receivables Turnover 69.55 69.04 70.62 69.12 66.49 65.19 65.04 63.72 64.69 70.83 78.97 84.99 85.55 75.31 1795.87
Inventory Turnover 6.36 5.94 6.04 6.00 5.88 5.78 5.69 5.58 5.64 5.68 5.73 5.65 5.67 5.59 5.83
Accounts Payable Turnover 11.65 11.48 11.62 12.01 12.18 12.63 12.77 12.62 12.72 12.95 12.91 12.92 13.19 12.66 13.82
Accrued Expenses Turnover 34.29 34.82 35.06 33.65 32.05 31.78 31.69 31.57 32.00 35.59 41.49 46.08 53.48 56.60 57.14
Property Plant & Equip Turnover 5.33 4.60 4.46 4.24 4.00 3.75 3.54 3.34 3.18 3.08 3.00 2.96 3.06 3.15 3.51
Cash & Equivalents Turnover 33.55 78.47 80.27 75.51 78.33 78.38 78.81 71.31 54.43 59.72 66.91 76.72 131.73 118.10 100.31
Per Share 12/29/2019 12/30/2018 12/31/2017 01/01/2017 01/03/2016 12/28/2014 12/29/2013 12/30/2012 01/01/2012 01/02/2011 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
Cash Flow per Share 15.04 9.00 9.47 8.58 8.13 7.02 6.67 5.46 5.14 4.88 4.01 4.21 4.00 3.67 3.84
Book Value per Share 11.24 8.69 9.35 11.57 12.18 12.97 14.24 14.72 15.83 15.27 14.84 14.39 13.13 12.59 12.64

charts for ratios

Lowe’s Companies Inc (NYS: LOW)
Exchange rate used is that of the Year End reported date
Profitability Ratios Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
ROA % (Net) 13.57 11.61 6.65 9.92 9.3 8.09 8.38 7.01 5.93 5.38 6.04 5.4 6.93 9.61 12
ROE % (Net) 343.27 152.88 48.76 56.17 43.2 28.98 24.80 17.83 12.93 10.44 10.84 9.63 12.89 17.70 20.71
ROI % (Operating) 43.48 30.78 18.86 29.35 27.11 23.94 21.99 18.36 15.16 13.20 14.62 12.93 16.19 21.98 27.17
EBITDA Margin % 11.26 10.7 7.60 10.96 11.30 10.93 11.16 10.50 10.1 9 10.5 10.01 11.04 12.6 13.45
Calculated Tax Rate % 24.6 23.87 31.82 37.20 40.53 42.39 36.90 37.76 37.55 36.72 37.73 36.88 37.39 37.73 37.88
Revenue per Employee 264245 226082 238350 221960 220571 219394 211945 204442 206775 199177 209184 198116 211190 224147 224076
Liquidity Ratios Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
Quick Ratio 0.28 0.06 0.05 0.06 0.1 0.07 0.06 0.06 0.09 0.16 0.2 0.14 0.08 0.07 0.12
Current Ratio 1.19 1.01 0.98 1.06 1.00 1.01 1.08 1.16 1.27 1.3 1.40 1.32 1.2 1.12 1.27
Net Current Assets % TA 7.69 0.34 -0.78 1.92 0.1 0.22 2.3 4.34 6.36 6.50 8.45 7.2 3.76 3.03 6.39
Debt Management Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
LT Debt to Equity 14.38 8.5 3.95 2.65 2.24 1.51 1.08 0.85 0.65 0.4 0.36 0.24 0.28 0.35 0.28
Total Debt to Equity 15.16 9.79 4.45 2.89 2.44 1.65 1.14 0.89 0.66 0.46 0.4 0.27 0.34 0.41 0.28
Interest Coverage 11.38 9.14 6.44 10.40 9.06 9.01 9.29 9 8.42 8.83 10.72 10.84 13.52 24.25 33.45
Asset Management Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
Total Asset Turnover 2.08 1.96 2.05 1.97 1.95 1.9 1.75 1.64 1.53 1.47 1.47 1.44 1.52 1.65 1.79
Receivables Turnover 5228.44
Inventory Turnover 4.09 3.82 4.04 4.14 4.3 4.19 4.07 3.9 3.92 3.94 3.82 3.7 4.01 4.28 4.44
Accounts Payable Turnover 9.69 9.08 9.6 10.39 10.41 11.01 11.13 11.1 11.25 11.35 11.33 11.28 12.37 13.38 14.81
Accrued Expenses Turnover 50.07 52.37 53 50.30 46.34 44.72 44.58 45.76 48.00 58.7 78.70 93.67 112.73 121.65 118.23
Property Plant & Equip Turnover 4.75 3.90 3.75 3.5 3.24 2.99 2.76 2.53 2.33 2.24 2.20 2.09 2.19 2.40 2.66
Cash & Equivalents Turnover 33.2 117.92 130.13 120.08 132.9 136.02 131.57 114.94 65.16 59.30 76.2 107.98 183.89 150.13 119.58
Per Share Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
Cash Flow per Share 14.81 5.54 7.66 6.05 6.28 5.17 5.00 3.9 3.28 3.37 2.76 2.78 2.84 2.94 2.94
Book Value per Share 1.97 2.58 4.55 7.08 7.4 8.41 10.38 11.51 12.48 13.32 13.38 13.07 12.28 11.04 10.31

Profitability ratios

ROA % (Net) 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 13.57 11.61 6.65 9.92 9.27 8.09 8.3800000000000008 7.01 5.93 5.38 6.04 5.44 6.93 9.61 11.87 ROE % (Net) 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 343.27 152.88 48.76 56.17 43.2 28.98 24.8 17.829999999999998 12.93 10.44 10.84 9.6300000000000008 12.89 17.7 20.71 ROI % (Operating) 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 43.48 30.78 18.86 29.35 27.11 23.94 21.99 18.36 15.16 13.2 14.62 12.93 16.190000000000001 21.98 27.17 EBITDA Margin % 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 11.26 10.69 7.6 10.96 11.3 10.93 11.16 10.5 10.06 9.4700000000000006 10.54 10.01 11.04 12.57 13.45 Calculated Tax Rate % 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 24.6 23.87 31.82 37.200000000000003 40.53 42.39 36.9 37.76 37.549999999999997 36.72 37.72 9999999999997 36.880000000000003 37.39 37.729999999999997 37.880000000000003

Revenue per employee

Revenue per Employee 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 264245 226082 238350 221960 220571 219394 211945 204442 206775 199177 209184 198116 211190 224147 224076

Liquidity Ratios

Quick Ratio 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 0.28000000000000003 0.06 0.05 0.06 0.05 7.0000000000000007E-2 0.06 0.06 0.09 0.16 0.16 0.14000000000000001 0.08 7.0000000000000007E-2 0.12 Current Ratio 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 1.19 1.01 0.98 1.06 1 1.01 1.08 1.1599999999999999 1.27 1.28 1.4 1.32 1.1499999999999999 1.1200000000000001 1.27 Net Current Assets % TA 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115

Debt Management Ratios

LT Debt to Equity 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 14.38 8.5 3.95 2.65 2.2400000000000002 1.51 1.08 0.85 0.65 0.43 0.36 0.24 0.28000000000000003 0.35 0.28000000000000003 Total Debt to Equity 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 15.16 9.7899999999999991 4.45 2.89 2.44 1.65 1.1399999999999999 0.89 0.66 0.46 0.36 0.27 0.34 0.41 0.28000000000000003 Interest Coverage 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 11.38 9.14 6.44 10.4 9.06 9.01 9.2899999999999991 8.7200000000000006 8.42 8.83 10.72 10.84 13.52 24.25 33.450000000000003

Asset Management Ratios

Total Asset Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 2.08 1.96 2.0499999999999998 1.97 1.95 1.88 1.75 1.64 1.53 1.47 1.47 1.44 1.52 1.65 1.79 Property Plant & Equip Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 4.75 3.9 3.75 3.47 3.24 2.99 2.76 2.5299999999999998 2.33 2.2400000000000002 2.2000000000000002 2.09 2.19 2.4 2.66

Asset Management Ratios

Receivables Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5228.4399999999996 Inventory Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 4.09 3.82 4.04 4.1399999999999997 4.2699999999999996 4.1900000000000004 4.07 3.94 3.92 3.94 3.82 3.74 4.01 4.2 8 4.4400000000000004 Accounts Payable Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 9.69 9.08 9.6199999999999992 10.39 10.41 11.01 11.13 11.08 11.25 11.35 11.33 11.28 12.37 13.38 14.81 Accrued Expenses Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 50.07 52.37 53.48 50.3 46.34 44.72 44.58 45.76 48 58.73 78.7 93.67 112.73 121.65 118.23 Cash & Equivalents Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 33.24 117.92 130.13 120.08 132.85 136.02000000000001 131.57 114.94 65.16 59.3 76.239999999999995 107.98 183.89 150.13 119.58 Total Asset Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 2.08 1.96 2.0499999999999998 1.97 1.95 1.88 1.75 1.64 1.53 1.47 1.47 1.44 1.52 1.65 1.79 Property Plant & Equip Turnover 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 4.75 3.9 3.75 3.47 3.24 2.99 2.76 2.5299999999999998 2.33 2.2400000000000002 2.2000000000000002 2.09 2.19 2.4 2.66

Per Share data

Cash Flow per Share 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 14.81 5.54 7.66 6.05 6.28 5.17 5 3.89 3.28 3.37 2.76 2.78 2.84 2.94 2.94 Book Value per Share 44225 43861 43497 43133 42769 42398 42034 41670 41306 40942 40571 40207 39843 39479 39115 1.97 2.58 4.55 7.08 7.43 8.41 10.38 11.51 12.48 13.32 13.38 13.07 12.28 11.04 10.31

comparison

Ratio comparison
01/29/2021 01/31/2021 01/31/2021 12/29/2019
Profitability Ratios LOW HD WMT Average
ROA % (Net) 13.57 21.18 5.51 13.42
ROE % (Net) 343.27 14099.83 17.32 4820.14
ROI % (Operating) 43.48 53.20 17.37 38.02
EBITDA Margin % 11.26 15.67 6.07 11.00
Calculated Tax Rate % 24.60 24.22 33.35 27.39
Revenue per Employee 264245 262427 242445 256372
Liquidity Ratios LOW HD WMT Average
Quick Ratio 0.28 0.47 0.26 0.34
Current Ratio 1.19 1.23 0.97 1.13
Net Current Assets % TA 7.69 7.52 -1.02 4.73
Debt Management LOW HD WMT Average
LT Debt to Equity 14.38 10.86 0.56 8.60
Total Debt to Equity 15.16 11.29 0.6 9.02
Interest Coverage 11.38 14.06 10.28 11.91
Asset Management LOW HD WMT Average
Total Asset Turnover 2.08 2.17 2.28 2.18
Receivables Turnover 51.97 87.13 69.55
Inventory Turnover 4.09 5.60 9.40 6.36
Accounts Payable Turnover 9.69 13.66 11.60 11.65
Accrued Expenses Turnover 50.07 27.32 25.49 34.29
Property Plant & Equip Turnover 4.75 5.58 5.65 5.33
Cash & Equivalents Turnover 33.24 26.42 40.99 33.55

Market value ratios

Current Market Multiples LOW HD WMT
Market Cap/Earnings (TTM) 21.14 27.17 49.83
Market Cap/Equity (MRQ) -110.5 418.71 4.42
Market Cap/Revenue (TTM) 1.83 2.93 0.7
Market Cap/EBIT (TTM) 14.78 19.4 26.04
Market Cap/EBITDA (TTM) 12.79 17.25 15.33
Enterprise Value/Earnings (TTM) 24.09 29.69 54.98 Obtained from
Enterprise Value/Equity (MRQ) -125.9 457.55 4.88
Enterprise Value/Revenue (TTM) 2.08 3.21 0.77 D&B Hoovers
Enterprise Value/EBIT (TTM) 16.84 21.2 28.73 Annual Ratios
Enterprise Value/EBITDA (TTM) 14.57 18.85 16.91
Valuation Ratios LOW HD WMT Industry Sector
P/E Ratio 22.38 27.72 50.59 25.51 37.31
Price/Revenue 1.94 3 0.71 2.52 2.24 Obtained from
Price/Book 418.71 4.88 400 6
Price to Cash Flow per Share 21.11 29.89 13.84 25.84 1.67 D&B Hoovers
Price to Free Cash Flow per Share 26.87 36.55 23.9 32.57 0 Ratio Comparisons

Analysis LOW

Report Date Jan-21 Jan-20 Feb-19 Feb-18 Feb-17 Jan-16 Jan-15 Jan-14 Feb-13 Feb-12 Jan-11 Jan-10 Jan-09 Feb-08 Feb-07
Raw numbers
Total Assets 46735000 39471000 34508000 35291000 34408000 31266000 31827000 32732000 32666000 33559000 33699000 33005000 32686000 30869000 27767000
Total Equity 1437000 1972000 3644000 5873000 6434000 7654000 9968000 11853000 13857000 16533000 18112000 19069000 18055000 16098000 15725000
Total Revenue 89597000 72148000 71309000 68619000 65017000 59074000 56223000 53417000 50521000 50208000 48815000 47220000 48230000 48283000 46927000
Operating Income 9647000 6314000 4018000 6586000 5846000 4971000 4792000 4149000 3560000 3277000 3560000 3112000 3786000 4705000 5152000
Net Income 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Shares Outstanding 731000 763000 801000 830000 866000 910000 960000 1030000 1110000 1241000 1354000 1459000 1470000 1458000 1524500
EPS Net Diluted 7.75 5.49 2.84 4.09 3.47 2.73 2.71 2.14 1.69 1.43 1.42 1.21 1.49 1.86 1.99
Cash dividends per share 2.30 2.13 1.85 1.58 1.33 1.07 0.87 0.70 0.62 0.53 0.42 0.36 0.34 0.29 0.18
Number of full time employees 220000 200000 190000 200000 190000 180000 175000 167000 160000 161000 161000 166000 164000 160000 157000
Cash Flow from Operations 11049000 4296000 6193000 5065000 5617000 4784000 4929000 4111000 3762000 4349000 3852000 4054000 4122000 4347000 4502000
Recent growth Last year Last 2 years Last 3 years Last 5 years Last 7 years Last 10 years
Total Assets 18.4% 16.4% 9.8% 6.3% 5.2% 3.3%
Total Equity -27.1% -37.2% -37.5% -25.9% -26.0% -22.4%
Total Revenue 24.2% 12.1% 9.3% 6.6% 7.7% 6.3%
Operating Income 52.8% 54.9% 13.6% 10.5% 12.8% 10.5%
Net Income 36.3% 58.8% 19.2% 13.5% 14.3% 11.2%
Shares Outstanding -4.2% -4.5% -4.1% -3.3% -4.8% -6.0%
EPS Net Diluted 41.2% 65.2% 23.7% 17.4% 20.2% 18.5%
Cash dividends per share 8.0% 11.5% 13.3% 11.6% 18.5% 18.5%
Number of full time employees 10.0% 7.6% 3.2% 3.0% 4.0% 3.2%
Cash Flow from Operations 157.2% 33.6% 29.7% 14.5% 15.2% 11.1%
Raw numbers Growth Numbers
Data sorted for charts
1 4 5 6 7 8 9 10 11 12 13
1 Total Assets Total Equity Total Revenue Operating Income Net Income Shares Outstanding EPS Net Diluted Cash dividends per share Number of full time employees Cash Flow from Operations
Total Assets Total Equity Total Revenue Operating Income Net Income Shares Outstanding EPS Net Diluted Cash dividends per share Number of full time employees Cash Flow from Operations
Feb-07 16 27767000 15725000 46927000 5152000 3105000 1524500 1.99 0.18 157000 4502000 Feb-07
Feb-08 15 30869000 16098000 48283000 4705000 2809000 1458000 1.86 0.29 160000 4347000 Feb-08 11.2% 2.4% 2.9% -8.7% -9.5% -4.4% -6.5% 61.1% 1.9% -3.4%
Jan-09 14 32686000 18055000 48230000 3786000 2195000 1470000 1.49 0.335 164000 4122000 Jan-09 5.9% 12.2% -0.1% -19.5% -21.9% 0.8% -19.9% 15.5% 2.5% -5.2%
Jan-10 13 33005000 19069000 47220000 3112000 1783000 1459000 1.21 0.355 166000 4054000 Jan-10 1.0% 5.6% -2.1% -17.8% -18.8% -0.7% -18.8% 6.0% 1.2% -1.6%
Jan-11 12 33699000 18112000 48815000 3560000 2010000 1354000 1.42 0.42 161000 3852000 Jan-11 2.1% -5.0% 3.4% 14.4% 12.7% -7.2% 17.4% 18.3% -3.0% -5.0%
Feb-12 11 33559000 16533000 50208000 3277000 1839000 1241000 1.43 0.53 161000 4349000 Feb-12 -0.4% -8.7% 2.9% -7.9% -8.5% -8.3% 0.7% 26.2% 0.0% 12.9%
Feb-13 10 32666000 13857000 50521000 3560000 1959000 1110000 1.69 0.62 160000 3762000 Feb-13 -2.7% -16.2% 0.6% 8.6% 6.5% -10.6% 18.2% 17.0% -0.6% -13.5%
Jan-14 9 32732000 11853000 53417000 4149000 2286000 1030000 2.14 0.7 167000 4111000 Jan-14 0.2% -14.5% 5.7% 16.5% 16.7% -7.2% 26.6% 12.9% 4.4% 9.3%
Jan-15 8 31827000 9968000 56223000 4792000 2698000 960000 2.71 0.87 175000 4929000 Jan-15 -2.8% -15.9% 5.3% 15.5% 18.0% -6.8% 26.6% 24.3% 4.8% 19.9%
Jan-16 7 31266000 7654000 59074000 4971000 2546000 910000 2.73 1.07 180000 4784000 Jan-16 -1.8% -23.2% 5.1% 3.7% -5.6% -5.2% 0.7% 23.0% 2.9% -2.9%
Feb-17 6 34408000 6434000 65017000 5846000 3093000 866000 3.47 1.33 190000 5617000 Feb-17 10.0% -15.9% 10.1% 17.6% 21.5% -4.8% 27.1% 24.3% 5.6% 17.4%
Feb-18 5 35291000 5873000 68619000 6586000 3447000 830000 4.09 1.58 200000 5065000 Feb-18 2.6% -8.7% 5.5% 12.7% 11.4% -4.2% 17.9% 18.8% 5.3% -9.8%
Feb-19 4 34508000 3644000 71309000 4018000 2314000 801000 2.84 1.85 190000 6193000 Feb-19 -2.2% -38.0% 3.9% -39.0% -32.9% -3.5% -30.6% 17.1% -5.0% 22.3%
Jan-20 3 39471000 1972000 72148000 6314000 4281000 763000 5.49 2.13 200000 4296000 Jan-20 14.4% -45.9% 1.2% 57.1% 85.0% -4.7% 93.3% 15.1% 5.3% -30.6%
Jan-21 2 46735000 1437000 89597000 9647000 5835000 731000 7.75 2.3 220000 11049000 Jan-21 18.4% -27.1% 24.2% 52.8% 36.3% -4.2% 41.2% 8.0% 10.0% 157.2%
Important ratios (DuPont and others)
1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12 1/28/11 1/29/10 1/30/09 2/1/08 2/2/07
Inventories 16193000 13179000 12561000 11393000 10458000 9458000 8911000 9127000 8600000 8355000 8321000 8249000 8209000 7611000 7144000
Direct Costs 60025000 49205000 48401000 45210000 42553000 38504000 36665000 34941000 33194000 32858000 31663000 30757000 31729000 31556000 30729000
Profit margin 6.5% 5.9% 3.2% 5.0% 4.8% 4.3% 4.8% 4.3% 3.9% 3.7% 4.1% 3.8% 4.6% 5.8% 6.6%
TATO 1.92 1.83 2.07 1.94 1.89 1.89 1.77 1.63 1.55 1.50 1.45 1.43 1.48 1.56 1.69
ROA 12.5% 10.8% 6.7% 9.8% 9.0% 8.1% 8.5% 7.0% 6.0% 5.5% 6.0% 5.4% 6.7% 9.1% 11.2%
EM 32.52 20.02 9.47 6.01 5.35 4.08 3.19 2.76 2.36 2.03 1.86 1.73 1.81 1.92 1.77
ROE 406.1% 217.1% 63.5% 58.7% 48.1% 33.3% 27.1% 19.3% 14.1% 11.1% 11.1% 9.4% 12.2% 17.4% 19.7%
Inventory turnover 3.7 3.7 3.9 4.0 4.1 4.1 4.1 3.8 3.9 3.9 3.8 3.7 3.9 4.1 4.3
From standardized CS Income statement
Gross Profit %TR 33.006 31.8 32.125 34.114 34.551 34.821 34.786 34.588 34.297 34.556 35.137 34.864 34.213 34.644 34.517
Operating Income %TR 10.767 8.751 5.635 9.598 8.991 8.415 8.523 7.767 7.047 6.527 7.293 6.59 7.85 9.745 10.979
Net Income %TR 6.512 5.934 3.245 5.023 4.757 4.31 4.799 4.28 3.878 3.663 4.118 3.776 4.551 5.818 6.617
Data sorted for charts
1 6 7 8 9 10 12 15 16 17
1 Profit margin TATO ROA EM ROE Inventory turnover Gross Profit %TR Operating Income %TR Net Income %TR
Feb-07 16 6.6% 1.69 11.2% 1.77 19.7% 4.30 34.52 10.98 6.62
Feb-08 15 5.8% 1.56 9.1% 1.92 17.4% 4.15 34.64 9.75 5.82
Jan-09 14 4.6% 1.48 6.7% 1.81 12.2% 3.87 34.21 7.85 4.55
Jan-10 13 3.8% 1.43 5.4% 1.73 9.4% 3.73 34.86 6.59 3.78
Jan-11 12 4.1% 1.45 6.0% 1.86 11.1% 3.81 35.14 7.29 4.12
Feb-12 11 3.7% 1.50 5.5% 2.03 11.1% 3.93 34.56 6.53 3.66
Feb-13 10 3.9% 1.55 6.0% 2.36 14.1% 3.86 34.30 7.05 3.88
Jan-14 9 4.3% 1.63 7.0% 2.76 19.3% 3.83 34.59 7.77 4.28
Jan-15 8 4.8% 1.77 8.5% 3.19 27.1% 4.11 34.79 8.52 4.80
Jan-16 7 4.3% 1.89 8.1% 4.08 33.3% 4.07 34.82 8.42 4.31
Feb-17 6 4.8% 1.89 9.0% 5.35 48.1% 4.07 34.55 8.99 4.76
Feb-18 5 5.0% 1.94 9.8% 6.01 58.7% 3.97 34.11 9.60 5.02
Feb-19 4 3.2% 2.07 6.7% 9.47 63.5% 3.85 32.13 5.64 3.25
Jan-20 3 5.9% 1.83 10.8% 20.02 217.1% 3.73 31.80 8.75 5.93
Jan-21 2 6.5% 1.92 12.5% 32.52 406.1% 3.71 33.01 10.77 6.51
Cost of debt, historical costs 1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12 1/28/11 1/29/10 1/30/09 2/1/08 2/2/07
Total long-term debt 21780000 17365000 15501000 15858000 15189000 12606000 11367000 10135000 9077000 7627000 6573000 5080000 5073000 5616000 4413000
Cash paid for interest, net of amount capitalized 824000 671000 635000 654000 619000 535000 504000 454000 444000 361000 319000 314000 309000 198000 179000
Implied interest rate 3.78% 3.86% 4.10% 4.12% 4.08% 4.24% 4.43% 4.48% 4.89% 4.73% 4.85% 6.18% 6.09% 3.53% 4.06%
Recent growth Last year Last 2 years Last 3 years Last 5 years Last 7 years Last 10 years
Cash dividends per share 8.0% 11.5% 13.3% 11.6% 18.5% 18.5%
Historical payout ratio 1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12 1/28/11 1/29/10 1/30/09 2/1/08 2/2/07
Net Income 5835000 4281000 2314000 3447000 3093000 2546000 2698000 2286000 1959000 1839000 2010000 1783000 2195000 2809000 3105000
Payment of Dividends -1704000 -1618000 -1455000 -1288000 -1121000 -957000 -822000 -733000 -704000 -647000 -571000 -391000 -491000 -428000 -276000
Payout ratio 29.2% 37.8% 62.9% 37.4% 36.2% 37.6% 30.5% 32.1% 35.9% 35.2% 28.4% 21.9% 22.4% 15.2% 8.9%
ROE 406.1% 217.1% 63.5% 58.7% 48.1% 33.3% 27.1% 19.3% 14.1% 11.1% 11.1% 9.4% 12.2% 17.4% 19.7%
Sustainable growth 287.47% 135.04% 23.57% 36.76% 30.65% 20.76% 18.82% 13.10% 9.06% 7.21% 7.95% 7.30% 9.44% 14.79% 17.99%
Tax rate 1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12 1/28/11 1/29/10 1/30/09 2/1/08 2/2/07
Taxation 1904000 1342000 1080000 2042000 2108000 1873000 1578000 1387000 1178000 1067000 1218000 1042000 1311000 1702000 1893000
Earnings Before Tax 7739000 5623000 3394000 5489000 5201000 4419000 4276000 3673000 3137000 2906000 3228000 2825000 3506000 4511000 4998000
Implied rate 24.6% 23.9% 31.8% 37.2% 40.5% 42.4% 36.9% 37.8% 37.6% 36.7% 37.7% 36.9% 37.4% 37.7% 37.9%
Capital structure (book) 1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12 1/28/11 1/29/10 1/30/09 2/1/08 2/2/07
Total long-term debt 21780000 17365000 15501000 15858000 15189000 12606000 11367000 10135000 9077000 7627000 6573000 5080000 5073000 5616000 4413000
Total Equity 1437000 1972000 3644000 5873000 6434000 7654000 9968000 11853000 13857000 16533000 18112000 19069000 18055000 16098000 15725000
Value of firm (V) 23217000 19337000 19145000 21731000 21623000 20260000 21335000 21988000 22934000 24160000 24685000 24149000 23128000 21714000 20138000
D/V 93.8% 89.8% 81.0% 73.0% 70.2% 62.2% 53.3% 46.1% 39.6% 31.6% 26.6% 21.0% 21.9% 25.9% 21.9%
E/V 6.2% 10.2% 19.0% 27.0% 29.8% 37.8% 46.7% 53.9% 60.4% 68.4% 73.4% 79.0% 78.1% 74.1% 78.1%

LOW

Total Assets 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 27767000 30869000 32686000 33005000 33699000 33559000 32666000 32732000 31827000 31266000 34408000 35291000 34508000 39471000 46735000

LOW

Profit margin 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 6.6166599185969704E-2 5.8177826564215149E-2 4.5511092680904003E-2 3.7759423972892843E-2 4.1175868073338111E-2 3.6627629063097515E-2 3.877595455355199E-2 4.2795364771514688E-2 4.798747843409281E-2 4.30984866438704E-2 4.7572173431564051E-2 5.023390023171425E-2 3.2450321838758081E-2 5.9336364140378114E-2 6.5124948379968073E-2

LOW

TATO 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1.6900277307595346 1.5641258220220933 1.4755552836076609 1.4306923193455536 1.4485593044303986 1.4961113263208081 1.5465927876079104 1.6319503849443968 1.7665189933075691 1.889400626879038 1.8895896303185307 1.944376753279873 2.066448359800626 1.8278736287400876 1.9171284904247352

LOW

ROA 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.11182338747434005 9.0997440798211787E-2 6.7154133268065838E-2 5.4022117860930162E-2 5.9645686815632509E-2 5.4799010697577401E-2 5.9970611645135619E-2 6.9839912012709268E-2 8.4770792094762321E-2 8.1430307682466577E-2 8.9891885607998143E-2 9.7673627837125618E-2 6.7056914338704074E-2 0.10845937523751616 0.124852893976677

LOW

EM 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1.7657869634340222 1.9175673996769784 1.810357241761285 1.7308196549373329 1.8605896643109541 2.0298191495796285 2.3573645089124629 2.7614949801737958 3.1929173354735152 4.0849229161222889 5.3478396021137709 6.0090243487144557 9.4698133918770591 20.015720081135903 32.522616562282536

LOW

ROE 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.19745627980922098 0.17449372592868675 0.12157297147604541 9.3502543395039078E-2 0.11097614840989399 0.11123208129196152 0.14137259147001516 0.19286256643887623 0.27066613162118786 0.33263652991899662 0.4807273857631334 0.58692320790056185 0.63501646542261259 2.170892494929006 4.0605427974947812

LOW

Inventory turnover 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 4.3013717805151179 4.1461043226908423 3.8651480082835912 3.728573160383077 3.8051916836918638 3.9327348892878518 3.8597674418604653 3.8283116029363429 4.1145774884973632 4.0710509621484459 4.0689424364123159 3.9682261037479152 3.8532760130562855 3.7335913195234842 3.7068486383005004

Du Pont Analysis

Profit margin 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 6.6166599185969704E-2 5.8177826564215149E-2 4.5511092680904003E-2 3.7759423972892843E-2 4.1175868073338111E-2 3.6627629063097515E-2 3.877595455355199E-2 4.2795364771514688E-2 4.798747843409281E-2 4.30984866438704E-2 4.7572173431564051E-2 5.023390023171425E-2 3.2450321838758081E-2 5.9336364140378114E-2 6.5124948379968073E-2 ROA 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.11182338747434005 9.0997440798211787E-2 6.7154133268065838E-2 5.4022117860930162E-2 5.9645686815632509E-2 5.4799010697577401E-2 5.9970611645135619E-2 6.9839912012709268E-2 8.4770792094762321E-2 8.1430307682466577E-2 8.9891885607998143E-2 9.7673627837125618E-2 6.7056914338704074E-2 0.10845937523751616 0.124852893976677 ROE 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.19745627980922098 0.17449372592868675 0.12157297147604541 9.3502543395039078E-2 0.11097614840989399 0.11123208129196152 0.14137259147001516 0.19286256643887623 0.27066613162118786 0.33263652991899662 0.4807273857631334 0.58692320790056185 0.63501646542261259 2.170892494929006 4.0605427974947812 TATO 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43 861 44225 1.6900277307595346 1.5641258220220933 1.4755552836076609 1.4306923193455536 1.4485593044303986 1.4961113263208081 1.5465927876079104 1.6319503849443968 1.7665189933075691 1.889400626879038 1.8895896303185307 1.944376753279873 2.066448359800626 1.8278736287400876 1.9171284904247352 EM 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1.7657869634340222 1.9175673996769784 1.810357241761285 1.7308196549373329 1.8605896643109541 2.0298191495796285 2.3573645089124629 2.7614949801737958 3.1929173354735152 4.0849229161222889 5.3478396021137709 6.0090243487144557 9.4698133918770591 20.015720081135903 32.522616562282536

Growth

Total Assets 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.11171534555407492 5.8861641128640452E-2 9.7595300740378477E-3 2.1027117103469273E-2 -4.1544259473574874E-3 -2.6609851306653942E-2 2.0204493969264714E-3 -2.7648784064523979E-2 -1.7626543500801173E-2 0.10049254781551853 2.5662636596140542E-2 -2.2186959848119914E-2 0.14382172249913072 0.18403384763497255

Growth

Total Equity 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 2.3720190779014327E-2 0.12156789663312217 5.6161728053170767E-2 -5.0186166028632906E-2 -8.7179770318021155E-2 -0.16185810197786243 -0.14462004762935698 -0.15903146882645747 -0.2321428571428571 -0.15939378102952706 -8.7193036990985351E-2 -0.37953345819853568 -0.45883644346871566 -0.27129817444219062

Growth

Total Revenue 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 2.8895944765273684E-2 -1.097694840834218E-3 -2.0941322828115227E-2 3.377806014400675E-2 2.8536310560278499E-2 6.234066284257489E-3 5.7322697492131924E-2 5.2530093415953827E-2 5.0708784661081863E-2 0.10060263398449409 5.5400895150499174E-2 3.9201970299771238E-2 1.176569577472697E-2 0.24185008593446811

LOW

Total Equity 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 15725000 16098000 18055000 19069000 18112000 16533000 13857000 11853000 9968000 7654000 6434000 5873000 3644000 1972000 1437000

Growth

Operating Income 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 -8.6762422360248448E-2 -0.19532412327311366 -0.17802430005282621 0.14395886889460163 -7.9494382022471943E-2 8.6359475129691887E-2 0.16544943820224711 0.15497710291636535 3.7353923205342143E-2 0.17602092134379399 0.12658227848101267 -0.38991800789553599 0.5714285714285714 0.52787456445993031

Growth

Shares Outstanding 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 -4.3620859298130532E-2 8.2304526748970819E-3 -7.4829931972789643E-3 -7.1967100753941082E-2 -8.3456425406203794E-2 -0.10556003223207089 -7.2072072072072113E-2 -6.7961165048543659E-2 -5.208333333333337E-2 -4.8351648351648402E-2 -4.1570438799076181E-2 -3.4939759036144546E-2 -4.7440699126092389E-2 -4.1939711664482293E-2

Growth

Net Income 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 -9.5330112721417115E-2 -0.21858312566749738 -0.18769931662870154 0.12731351654514866 -8.5074626865671688E-2 6.5252854812398065E-2 0.16692189892802456 0.18022747156605434 -5.633802816901412E-2 0.21484681853888454 0.11445198836081483 -0.32869161589788221 0.85004321521175452 0.36299929922915197

Growth

EPS Net Diluted 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 -6.5326633165829096E-2 -0.19892473118279574 -0.18791946308724838 0.17355371900826433 7.0422535211267512E-3 0.18181818181818188 0.26627218934911245 0.26635514018691575 7.3800738007379074E-3 0.27106227106227121 0.17867435158501421 -0.30562347188264061 0.93309859154929597 0.41165755919854274

Growth

Cash dividends per share 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.61111111111111116 0.15517241379310365 5.9701492537313383E-2 0.18309859154929575 0.26190476190476208 0.16981132075471694 0.12903225806451601 0.24285714285714288 0.22988505747126453 0.2429906542056075 0.18796992481203012 0.17088607594936711 0.15135135135135114 7.9812206572769995E-2

Growth

Number of full time employees 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1.9108280254777066E-2 2.4999999999999911E-2 1.2195121951219523E-2 -3.0120481927710885E-2 0 -6.2111801242236142E-3 4.3749999999999956E-2 4.7904191616766401E-2 2.857142857142847E-2 5.555555555555558E-2 5.2631578947368363E-2 -5.0000000000000044E-2 5.2631578947368363E-2 0.10000000000000009

Profitability analysis

Gross Profit %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 34.517000000000003 34.643999999999998 34.213000000000001 34.863999999999997 35.137 34.555999999999997 34.296999999999997 34.588000000000001 34.786000000000001 34.820999999999998 34.551000000000002 34.113999999999997 32.125 31.8 33.006 Operating Income %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 10.978999999999999 9.7449999999999992 7.85 6.59 7.2930000000000001 6.5270000000000001 7.0469999999999997 7.7670000000000003 8.5229999999999997 8.4149999999999991 8.9909999999999997 9.5980000000000008 5.6349999999999998 8.7509999999999994 10.766999999999999 Net Income %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 6.617 5.8179999999999996 4.5510000000000002 3.7759999999999998 4.1180000000000003 3.6629999999999998 3.8780000000000001 4.28 4.7990000000000004 4.3099999999999996 4.7569999999999997 5.0229999999999997 3.2450000000000001 5.9340000000000002 6.5119999999999996

LOW

Gross Profit %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 34.517000000000003 34.643999999999998 34.213000000000001 34.863999999999997 35.137 34.555999999999997 34.296999999999997 34.588000000000001 34.786000000000001 34.820999999999998 34.551000000000002 34.113999999999997 32.125 31.8 33.006

LOW

Operating Income %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 10.978999999999999 9.7449999999999992 7.85 6.59 7.2930000000000001 6.5270000000000001 7.0469999999999997 7.7670000000000003 8.5229999999999997 8.4149999999999991 8.9909999999999997 9.5980000000000008 5.6349999999999998 8.7509999999999994 10.766999999999999

LOW

Net Income %TR 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 6.617 5.8179999999999996 4.5510000000000002 3.7759999999999998 4.1180000000000003 3.6629999999999998 3.8780000000000001 4.28 4.7990000000000004 4.3099999999999996 4.7569999999999997 5.0229999999999997 3.2450000000000001 5.9340000000000002 6.5119999999999996

LOW

Total Revenue 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 46927000 48283000 48230000 47220000 48815000 50208000 50521000 53417000 56223000 59074000 65017000 68619000 71309000 72148000 89597000

Growth

Cash Flow from Operations 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 -3.4429142603287444E-2 -5.1759834368530044E-2 -1.6496846191169312E-2 -4.9827331031080391E-2 0.12902388369678097 -0.13497355713957226 9.2769803296119058E-2 0.19897835076623682 -2.9417731791438473E-2 0.17412207357859533 -9.8273099519316398E-2 0.22270483711747291 -0.30631357984821572 1.571927374301676

LOW

Cash Flow from Operations 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 4502000 4347000 4122000 4054000 3852000 4349000 3762000 4111000 4929000 4784000 5617000 5065000 6193000 4296000 11049000

LOW

Operating Income 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 5152000 4705000 3786000 3112000 3560000 3277000 3560000 4149000 4792000 4971000 5846000 6586000 4018000 6314000 9647000

LOW

Net Income 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 3105000 2809000 2195000 1783000 2010000 1839000 1959000 2286000 2698000 2546000 3093000 3447000 2314000 4281000 5835000

LOW

Shares Outstanding 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1524500 1458000 1470000 1459000 1354000 1241000 1110000 1030000 960000 910000 866000 830000 801000 763000 731000

LOW

EPS Net Diluted 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 1.99 1.86 1.49 1.21 1.42 1.43 1.69 2.14 2.71 2.73 3.47 4.09 2.84 5.49 7.75

LOW

Cash dividends per share 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.18 0.28999999999999998 0.33500000000000002 0.35499999999999998 0.42 0.53 0.62 0.7 0.87 1.07 1.33 1.58 1.85 2.13 2.2999999999999998

LOW

Number of full time employees 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 157000 160000 164000 166000 161000 161000 160000 167000 175000 180000 190000 200000 190000 200000 220000 Number of full time employees 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 157000 160000 164000 166000 161000 161000 160000 167000 175000 180000 190000 200000 190000 200000 220000

Cost of debt

Cost of debt, historical costs 1/29/21 1/31/20 2/1/19 2/2/18 2/3/17
Total long-term debt 21780000 17365000 15501000 15858000 15189000
Cash paid for interest, net of amount capitalized 824000 671000 635000 654000 619000
Implied interest rate 3.8% 3.9% 4.1% 4.1% 4.1%
https://www.moodys.com/credit-ratings/McDonalds-Corporation-credit-rating-479500
https://www.standardandpoors.com/en_US/web/guest/ratings/entity/-/org-details/sectorCode/CORP/entityId/101460
10 year bonds
3.038
3.065
Average 3.0515
RD 3.05%
Lower than the historical cost of debt.
http://finra-markets.morningstar.com/BondCenter/Results.jsp

https://www.moodys.com/credit-ratings/McDonalds-Corporation-credit-rating-479500
https://www.standardandpoors.com/en_US/web/guest/ratings/entity/-/org-details/sectorCode/CORP/entityId/101460
http://finra-markets.morningstar.com/BondCenter/Results.jsp

Cost of equity

DCF approach
Growth of dividends
Recent growth Last year Last 2 years Last 3 years Last 5 years Last 7 years Last 10 years
Cash dividends per share 8.0% 11.5% 13.3% 11.6% 18.5% 18.5%
Historical payout ratio
1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16
Net Income 5835000 4281000 2314000 3447000 3093000 2546000
Payment of Dividends -1704000 -1618000 -1455000 -1288000 -1121000 -957000
Payout ratio 29.2% 37.8% 62.9% 37.4% 36.2% 37.6%
ROE 406.1% 217.1% 63.5% 58.7% 48.1% 33.3% https://finance.yahoo.com/quote/LOW?p=LOW
Sustainable growth 287.5% 135.0% 23.6% 36.8% 30.6% 20.8%
Last 5 years average 25.7%
https://finance.yahoo.com/quote/LOW?p=LOW
Three estimates of g
Analysts earnings estimate 16.80%
My estimate based on historical growth 8.00%
Sustainable growth 26%
Average 16.84%
http://finra-markets.morningstar.com/BondCenter/Default.jsp
Dividend yield 1.42%
Rs 18.26%
CAPM approach
Average beta estimate 1.312
Market Risk Premium 5.50% Given by instructor based on market expectations
Risk free rate 1.93%
Rs 9.14%
Rd plus risk premium approach
Rd 3.05%
Risk Premium 4% Given by instructor based on historical averages
Rs 7.05%

Growth

Cash dividends per share 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 0.61111111111111116 0.15517241379310365 5.9701492537313383E-2 0.18309859154929575 0.26190476190476208 0.16981132075471694 0.12903225806451601 0.24285714285714288 0.22988505747126453 0.2429906542056075 0.18796992481203012 0.17088607594936711 0.15135135135135114 7.9812206572769995E-2

http://finra-markets.morningstar.com/BondCenter/Default.jsp
https://finance.yahoo.com/quote/LOW?p=LOW

CAPM & beta

Date Open High Low Close Adj Close Volume ^GSPC LOW Date Open High Low Close Adj Close Volume
1/1/17 2,251.57 2,300.99 2,245.13 2,278.87 2,278.87 70,483,180,000 Ret S&P Ret LOW 1/1/17 71.709999 74.75 70.489998 73.080002 66.602631 104191300
2/1/17 2,285.59 2,371.54 2,271.65 2,363.64 2,363.64 69,162,420,000 0.0371982605 0.0226397363 2/1/17 72.910004 77.519997 71.790001 74.370003 68.110497 106682500
3/1/17 2,380.13 2,400.98 2,322.25 2,362.72 2,362.72 81,547,770,000 -0.0003892302 0.1054188461 3/1/17 81.279999 84 80.279999 82.209999 75.290627 128273700
3/31/17 2,362.34 2,398.16 2,328.95 2,384.20 2,384.20 65,265,670,000 0.0090912169 0.0324776947 4/1/17 83.110001 85.760002 81.050003 84.879997 77.735893 81098100
4/30/17 2,388.50 2,418.71 2,352.72 2,411.80 2,411.80 79,607,170,000 0.01157621 -0.0680762618 5/1/17 84.839996 86.25 78.099998 78.769997 72.443924 136012800
5/31/17 2,415.65 2,453.82 2,405.70 2,423.41 2,423.41 81,002,490,000 0.004813832 -0.0157422036 6/1/17 78.769997 81.449997 75.790001 77.529999 71.303497 131718300
6/30/17 2,431.39 2,484.04 2,407.70 2,470.30 2,470.30 63,169,400,000 0.0193487689 -0.0016765657 7/1/17 78 78.449997 71.580002 77.400002 71.183952 122500900
7/31/17 2,477.10 2,490.87 2,417.35 2,471.65 2,471.65 70,616,030,000 0.0005464923 -0.0400182193 8/1/17 77.269997 78.910004 70.760002 73.889999 68.335297 149943300
8/31/17 2,474.42 2,519.44 2,446.55 2,519.36 2,519.36 66,337,980,000 0.0193028948 0.0818782715 9/1/17 74.190002 80.150002 73.720001 79.940002 73.930473 145099700
9/30/17 2,521.20 2,582.98 2,520.40 2,575.26 2,575.26 70,871,570,000 0.0221881748 0.0001249823 10/1/17 80.040001 82.739998 79.400002 79.949997 73.939713 110493800
10/31/17 2,583.21 2,657.74 2,557.45 2,647.58 2,647.58 73,173,260,000 0.0280826014 0.0481208792 11/1/17 79.620003 84.68 75.360001 83.370003 77.497757 142241900
12/1/17 2,645.10 2,694.97 2,605.52 2,673.61 2,673.61 65,251,190,000 0.0098316198 0.1147894771 12/1/17 83.239998 93.550003 82.120003 92.940002 86.393684 131002100
1/1/18 2,683.73 2,872.87 2,682.36 2,823.81 2,823.81 76,860,120,000 0.0561787246 0.1268563452 1/1/18 93.019997 108.980003 91.169998 104.730003 97.353271 128537300
2/1/18 2,816.45 2,835.96 2,532.69 2,713.83 2,713.83 79,579,410,000 -0.0389473796 -0.1412751812 2/1/18 103.839996 105.080002 86.75 89.589996 83.59967 151269400
3/1/18 2,715.22 2,801.90 2,585.89 2,640.87 2,640.87 76,369,800,000 -0.0268845138 -0.0205382988 3/1/18 89.57 90.330002 83.739998 87.75 81.882675 170855700
3/31/18 2,633.45 2,717.49 2,553.80 2,648.05 2,648.05 69,648,590,000 0.002718801 -0.0606265489 4/1/18 87.349998 89.150002 81.309998 82.43 76.918411 132443800
4/30/18 2,642.96 2,742.24 2,594.62 2,705.27 2,705.27 75,617,280,000 0.0216083533 0.1582443766 5/1/18 81.75 97.980003 81.160004 95.010002 89.090317 143773800
5/31/18 2,718.70 2,791.47 2,691.99 2,718.37 2,718.37 77,439,710,000 0.0048424002 0.0058939402 6/1/18 95.440002 101.330002 95.160004 95.57 89.61541 91697700
6/30/18 2,704.95 2,848.03 2,698.95 2,816.29 2,816.29 64,542,170,000 0.0360215865 0.0394474008 7/1/18 95.360001 101.980003 93.959999 99.339996 93.150505 76344400
7/31/18 2,821.17 2,916.50 2,796.34 2,901.52 2,901.52 69,238,220,000 0.0302632186 0.0999445253 8/1/18 98.989998 109.800003 96.239998 108.75 102.460388 107517700
8/31/18 2,896.96 2,940.91 2,864.12 2,913.98 2,913.98 62,492,080,000 0.0042943009 0.055816195 9/1/18 108.389999 117.699997 108.029999 114.82 108.179337 94437200
9/30/18 2,926.29 2,939.86 2,603.54 2,711.74 2,711.74 91,327,930,000 -0.069403359 -0.1707020907 10/1/18 115.580002 115.629997 91.610001 95.220001 89.712898 117775300
10/31/18 2,717.58 2,815.15 2,631.09 2,760.17 2,760.17 80,080,110,000 0.0178593818 -0.0040679101 11/1/18 95.290001 100.690002 84.75 94.370003 89.347954 114556600
12/1/18 2,790.50 2,800.18 2,346.58 2,506.85 2,506.85 83,522,570,000 -0.0917769558 -0.0212991783 12/1/18 95.489998 96.059998 85.900002 92.360001 87.444916 106725000
1/1/19 2,476.96 2,708.95 2,443.96 2,704.10 2,704.10 80,401,630,000 0.0786844047 0.0411431924 1/1/19 91.220001 98.220001 90.230003 96.160004 91.042679 98822400
2/1/19 2,702.32 2,813.49 2,681.83 2,784.49 2,784.49 70,183,430,000 0.0297289301 0.098417216 2/1/19 96.209999 109.919998 95.839996 105.089996 100.002846 88244000
3/1/19 2,798.22 2,860.31 2,722.27 2,834.40 2,834.40 78,596,280,000 0.0179242878 0.0416785038 3/1/19 105.900002 109.940002 97.550003 109.470001 104.170815 99741000
3/31/19 2,848.63 2,949.52 2,848.63 2,945.83 2,945.83 69,604,840,000 0.0393134349 0.0335251961 4/1/19 110.209999 118.230003 105.839996 113.139999 107.663162 86340500
4/30/19 2,952.33 2,954.13 2,750.52 2,752.06 2,752.06 76,860,120,000 -0.0657777265 -0.1720310611 5/1/19 113.040001 113.129997 91.599998 93.279999 89.141754 132427600
5/31/19 2,751.53 2,964.15 2,728.81 2,941.76 2,941.76 70,904,280,000 0.0689301832 0.0817968199 6/1/19 93.029999 102.959999 92.900002 100.910004 96.433266 95671900
6/30/19 2,971.41 3,027.98 2,952.22 2,980.38 2,980.38 70,349,470,000 0.0131281954 0.0048558866 7/1/19 102.099998 108.309998 100.839996 101.400002 96.901535 92408500
7/31/19 2,980.32 3,013.59 2,822.12 2,926.46 2,926.46 79,599,440,000 -0.0180916527 0.1124754113 8/1/19 101.739998 113.239998 91.82 112.199997 107.800575 125947700
8/31/19 2,909.01 3,021.99 2,891.85 2,976.74 2,976.74 73,992,330,000 0.0171811677 -0.0199643462 9/1/19 111.370003 115.959999 108.809998 109.959999 105.648407 74933600
9/30/19 2,983.69 3,050.10 2,855.94 3,037.56 3,037.56 77,564,550,000 0.0204317475 0.0150054037 10/1/19 110.089996 113.809998 104.589996 111.610001 107.233704 75839900
10/31/19 3,050.72 3,154.26 3,050.72 3,140.98 3,140.98 72,179,920,000 0.0340470641 0.0562599796 11/1/19 111.919998 121.220001 110.150002 117.309998 113.26667 86957200
12/1/19 3,143.85 3,247.93 3,070.33 3,230.78 3,230.78 72,054,000,000 0.0285898032 0.0208847581 12/1/19 117.599998 121.459999 113.610001 119.760002 115.632217 66612000
1/1/20 3,244.67 3,337.77 3,214.64 3,225.52 3,225.52 77,104,420,000 -0.0016280898 -0.0293921633 1/1/20 120.050003 123.139999 116.089996 116.239998 112.233536 76244300
2/1/20 3,235.66 3,393.52 2,855.84 2,954.22 2,954.22 84,292,270,000 -0.084110469 -0.0790502849 2/1/20 117 126.730003 102.93 106.57 103.361443 87816100
3/1/20 2,974.28 3,136.72 2,191.86 2,584.59 2,584.59 161,801,100,000 -0.1251193208 -0.1925495467 3/1/20 107.199997 113.550003 60 86.050003 83.459244 202085300
3/31/20 2,498.08 2,954.86 2,447.49 2,912.43 2,912.43 123,163,450,000 0.1268441029 0.2173155678 4/1/20 80.739998 107.800003 79.080002 104.75 101.596237 132098400
4/30/20 2,869.09 3,068.67 2,766.64 3,044.31 3,044.31 106,799,100,000 0.045281775 0.2516277251 5/1/20 102.5 131.399994 102.309998 130.350006 127.160667 134518500
5/31/20 3,038.78 3,233.13 2,965.66 3,100.29 3,100.29 131,044,000,000 0.0183884033 0.0365937291 6/1/20 129.889999 137.289993 123.089996 135.119995 131.81395 108753500
6/30/20 3,105.92 3,279.99 3,101.17 3,271.12 3,271.12 97,197,020,000 0.055101297 0.1020576426 7/1/20 135.399994 149.919998 134.050003 148.910004 145.266571 77540100
7/31/20 3,288.26 3,514.77 3,284.53 3,500.31 3,500.31 84,402,300,000 0.0700646873 0.1102074613 8/1/20 149.899994 171.320007 148.710007 164.690002 161.276031 84474800
8/31/20 3,507.44 3,588.11 3,209.45 3,363.00 3,363.00 92,084,120,000 -0.0392279541 0.0071041059 9/1/20 164.410004 171.720001 151.889999 165.860001 162.421753 86104100
9/30/20 3,385.87 3,549.85 3,233.94 3,269.96 3,269.96 89,737,600,000 -0.0276657746 -0.0467863501 10/1/20 167.339996 180.669998 155.770004 158.100006 154.822632 76284400
10/31/20 3,296.20 3,645.99 3,279.74 3,621.63 3,621.63 100,977,880,000 0.1075456581 -0.0110330187 11/1/20 159.889999 173.559998 146.720001 155.820007 153.114471 119732000
12/1/20 3,645.87 3,760.20 3,633.40 3,756.07 3,756.07 96,056,410,000 0.0371214067 0.0300986312 12/1/20 155.820007 166.190002 149.309998 160.509995 157.723007 112753000
1/1/21 3,764.61 3,870.90 3,662.71 3,714.24 3,714.24 105,548,790,000 -0.0111366402 0.0394993103 1/1/21 160.770004 175.149994 157.130005 166.850006 163.952957 81117500
2/1/21 3,731.17 3,950.43 3,725.62 3,811.15 3,811.15 98,596,960,000 0.026091475 -0.0391886436 2/1/21 167.119995 179.460007 157.949997 159.75 157.527863 71474000
3/1/21 3,842.51 3,994.41 3,723.34 3,972.89 3,972.89 120,863,560,000 0.042438634 0.1904852159 3/1/21 160.759995 192.910004 150.839996 190.179993 187.534592 102104800
3/31/21 3,992.78 4,218.78 3,992.78 4,181.17 4,181.17 82,869,290,000 0.0524253126 0.0319171249 4/1/21 191.199997 208.979996 189.690002 196.25 193.520157 75171000
4/30/21 4,191.98 4,238.04 4,056.88 4,204.11 4,204.11 75,155,370,000 0.0054865026 -0.0043073394 5/1/21 198.75 215.220001 186.380005 194.830002 192.6866 89800200
5/31/21 4,216.52 4,302.43 4,164.40 4,297.50 4,297.50 85,705,180,000 0.0222139763 -0.0044141938 6/1/21 195 196.100006 184.460007 193.970001 191.836044 84601100
6/30/21 4,300.73 4,429.97 4,233.13 4,395.26 4,395.26 66,496,430,000 0.0227481094 -0.006598859 7/1/21 194.5 201.419998 190.039993 192.690002 190.570145 66190800
7/31/21 4,406.86 4,537.36 4,367.73 4,522.68 4,522.68 63,217,960,000 0.0289903214 0.0625309594 8/1/21 193.809998 209.490005 182.080002 203.889999 202.486679 92307400
8/31/21 4,528.80 4,545.85 4,305.91 4,307.54 4,307.54 66,268,850,000 -0.0475691404 -0.0050517842 9/1/21 204.550003 212.25 201.479996 202.860001 201.46376 64883400
9/30/21 4,317.16 4,608.08 4,278.94 4,605.38 4,605.38 61,874,700,000 0.0691438733 0.1526176122 10/1/21 203.729996 234.960007 201.580002 233.820007 232.210678 63762400
10/31/21 4,610.62 4,743.83 4,560.00 4,567.00 4,567.00 67,520,800,000 -0.0083337314 0.0498487369 11/1/21 235 256.390015 230.210007 244.589996 243.786087 67133800
12/1/21 4,602.82 4,808.93 4,495.12 4,766.18 4,766.18 68,699,830,000 0.043612875 0.0567889053 12/1/21 248.300003 263.309998 242.300003 258.480011 257.630432 75574600
1/1/22 4,778.14 4,818.62 4,222.62 4,515.55 4,515.55 73,279,440,000 -0.0525850891 -0.0817471245 1/1/22 259.200012 260.829987 220.199997 237.350006 236.569885 84261400
Monthly Average 1.2% 2.5%
Monthly SD 4.5% 8.7%
S&P 500 LOW
Yearly average return 15.0% 30.0%
Yearly Standard Deviation 15.7% 30.0%
Beta 1 1.312
CORREL 0.682
SLOPE 1.307
Long formula for beta
1.307
Average beta estimate
https://finance.yahoo.com/quote/mcd/?p=mcd
Using 5 years of data 1.307
Yahoo (3 years) 1.3
MSN Money 1.32
Reuters 1.32
Average beta 1.312
https://www.reuters.com/finance/stocks/financial-highlights/MCD.N
https://www.msn.com/en-us/money/stockdetails/nys-mcd/fi-a1xdec?symbol=MCD&form=PRFIHQ

Ret LOW

3.7198260541408734E-2 -3.8923017041514463E-4 9.0912169025529899E-3 1.1576210049492719E-2 4.8138319927024664E-3 1.9348768883515444E-2 5.4649232886694321E-4 1.9302894827342154E-2 2.2188174774546043E-2 2.8082601368405458E-2 9.8316198188534987E-3 5.6178724645703726E-2 -3.8947379604151844E-2 -2.6884513768364315E-2 2.718801001185378E-3 2.1608353316591389E-2 4.8424002040461378E-3 3.6021586465418753E-2 3.0263218631604083E-2 4.2943009181395375E-3 -6.9403358979814644E-2 1.785938179914015E-2 -9.1776955767217339E-2 7.8684404731036883E-2 2.9728930143116061E-2 1.7924287751078349E-2 3.9313434942139347E-2 -6.5777726481161536E-2 6.8930183208214979E-2 1.3128195366039375E-2 -1.8091652742267761E-2 1.7181167690656807E-2 2.0431747482144935E-2 3.404706409091518E-2 2.8589803182446305E-2 -1.6280898111292741E-3 -8.4110469009648137E-2 -0.12511932083595656 0.12684410293315374 4.528177501261843E-2 1.8388403283502663E-2 5.5101296975444303E-2 7.0064687324219221E-2 -3.9227954095494399E-2 -2.7665774606006499E-2 0.10754565805086314 3.712140665943231E-2 -1.1136640158463607E-2 2.6091474971999817E-2 4.2438634008107767E-2 5.242531255584737E-2 5.4865025818131574E-3 2.221397632316946E-2 2.274810936591054E-2 2.8990321391681118E-2 -4.7569140421166334E-2 6.9143873301234615E-2 -8.3337314184714906E-3 4.3612874972629889E-2 -5.2585089106999772E-2 2.2639736259067567E-2 0.10541884608476737 3.2477694733502593E-2 -6.8076261759802636E-2 -1.574220358356071E-2 -1.6765657370211295E-3 -4.0018219275041234E-2 8.1878271488305732E-2 1.2498229248425474E-4 4.812087923576347E-2 0.11478947706834908 0.12685634519301225 -0.14127518119036808 -2.0538298775581221E-2 -6.0626548900606925E-2 0.15824437662915303 5.8939401910536038E-3 3.9447400843225511E-2 9.9944525260491135E-2 5.5816195035295113E-2 -0.17070209073290965 -4.0679100568125071E-3 -2.129917826657779E-2 4.1143192361234648E-2 9.8417215952091963E-2 4.1678503829780889E-2 3.3525196092590859E-2 -0.17203106109775967 8.1796819927954179E-2 4.8558865568235632E-3 0.11247541125122518 -1.996434620130727E-2 1.5005403725585786E-2 5.6259 979604919685E-2 2.088475806695822E-2 -2.9392163258445514E-2 -7.9050284934442439E-2 -0.19254954673959024 0.21731556782373929 0.25162772514891474 3.6593729097064376E-2 0.10205764260914707 0.11020746128852998 7.1041058791929679E-3 -4.6786350101762575E-2 -1.10330187385006E-2 3.0098631239107387E-2 3.9499310332068438E-2 -3.9188643605860718E-2 0.19048521593922718 3.191712492167853E-2 -4.3073394158108513E-3 -4.4141938256215818E-3 -6.5988589714662815E-3 6.2530959400802333E-2 -5.051784171935636E-3 0.1526176122196865 4.9848736930176774E-2 5.6788905266771827E-2 -8.174712450119237E-2

https://www.reuters.com/finance/stocks/financial-highlights/MCD.N
https://finance.yahoo.com/quote/mcd/?p=mcd
https://www.msn.com/en-us/money/stockdetails/nys-mcd/fi-a1xdec?symbol=MCD&form=PRFIHQ

WACC

Tax rate 1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12
Taxation 1904000 1342000 1080000 2042000 2108000 1873000 1578000 1387000 1178000 1067000
Earnings Before Tax 7739000 5623000 3394000 5489000 5201000 4419000 4276000 3673000 3137000 2906000
Implied rate 24.6% 23.9% 31.8% 37.2% 40.5% 42.4% 36.9% 37.8% 37.6% 36.7%
Average tax rate last 5 years 24.2%
Capital structure
Based on book value of firm
1/29/21 1/31/20 2/1/19 2/2/18 2/3/17 1/29/16 1/30/15 1/31/14 2/1/13 2/3/12
Total long-term debt 21780000 17365000 15501000 15858000 15189000 12606000 11367000 10135000 9077000 7627000
Total Equity 1437000 1972000 3644000 5873000 6434000 7654000 9968000 11853000 13857000 16533000
Value of firm (V) 23217000 19337000 19145000 21731000 21623000 20260000 21335000 21988000 22934000 24160000
D/V 0.9381056984 0.8980193412 81.0% 73.0% 70.2% 62.2% 53.3% 46.1% 39.6% 31.6%
E/V 0.0618943016 0.1019806588 19.0% 27.0% 29.8% 37.8% 46.7% 53.9% 60.4% 68.4%
Average for last 5 years
D/V 81.6%
E/V 18.4%
Weighted Average Cost of Capital
Capital structure
Based on market value of firm Tc 24.2%
Rd 3.05%
Calculating historical market equity 1) DCF Rs 18.26%
1/29/21 1/31/20 2/1/19 2/2/18 2) CAPM 9.14%
Total long-term debt 21780000 17365000 15501000 15858000 3) Rd + RP 7.05%
Shares Outstanding 731000 763000 801000 830000 Avg Rs 11.48%
Stock price end of year 166.85 106.57 105.09 89.59
Market capitalization (E ) 121967354 81312910 84177087 74359697 Calculating capital structure with book values
Value of the firm (V) 143747354 98677910 99678087 90217697
D/V 81.6%
D/V 15.2% 17.6% 15.6% 17.6% E/V 18.4%
E/V 84.8% 82.4% 84.4% 82.4%
Average for last 4 years Estimate of WACC 4.00%
D/V 16.5%
E/V 83.5% Calculating capital structure with market values
Market capitalization at the close of the most recent fiscal year D/V 20.8%
Based on market value of firm Oct-21 E/V 79.2%
Debt at the close of the fiscal year 28017
Stock price at close of fiscal year 158.10 Estimate of WACC 9.57%
Shares outstanding, most recent 674
Market capitalization (E ) 106519.8790425
Value of the firm (V) 134536.8790425
https://finance.yahoo.com/quote/LOW/key-statistics?p=LOW
D/V 20.8%
E/V 79.2%
https://finance.yahoo.com/quote/LOW/balance-sheet?p=LOW
E

https://finance.yahoo.com/quote/LOW/key-statistics?p=LOW
https://finance.yahoo.com/quote/LOW/balance-sheet?p=LOW

Cap Bud

Capital Budgeting template Must be adjusted to fit the instructions of MP3
Cash Flow Estimation
– We assume that the company you selected is considering a new project. The project has 8
years’ life. This project requires initial investment of $12 million to purchase building and
equipment, and $1 million for shipping & installation fee. The fixed assets fall in the 10-year
MACRS class. The salvage value of fixed assets is $2.5 million. The number of units of the
new product expected to be sold in the first year is 200,000 and the expected annual growth
rate is 3%. The sales price is $65 per unit and the variable cost is $30 per unit in the first year.
The fixed costs for the project are $1,600,000 per year. Prices and costs will be adjusted
based on the estimated annualized inflation rate of 2.0%. The required net operating working
capital (NOWC) is 12.5% of next year sales. Students will estimate the average tax rate in
recent years and use it in the calculations. The project is assumed to have the same risk as
the corporation.
– Compute the depreciation basis and annual depreciation of the new project. (Please refer to
table for MACRS allowances)
– Estimate annual cash flows for the 8 years
a. Develop a spreadsheet model, and use it to find the project’s NPV, IRR, and payback.
Key Output: NPV = $15,336,786
Part 1. Input Data IRR = 34.2%
MIRR = 21.5%
Equipment cost $12,000,000
Net WC/Sales 13% Market value of equipment at Year 10 $2,500,000
First year sales (in units) 200,000 Tax rate 24%
Sales price per unit $65 WACC 9.57%
Variable cost per unit $30 Inflation 2.0%
Nonvariable costs $1,600,000 Growth in Sales 3.0%
Part 2. Depreciation and Amortization Schedule Years Accum’d
Year Initial Cost 1 2 3 4 5 6 7 8 9 Depr’n
Equipment Depr’n Rate 10.0% 18.0% 14.4% 11.5% 9.2% 7.4% 6.6% 6.6% 6.6%
Equipment Depr’n, Dollars $1,200,000 $2,160,000 $1,728,000 $1,382,400 $1,106,400 $884,400 $786,000 $786,000 $787,200 $9,620,400
Ending Bk Val: Cost – Accum Dep’rn 12,000,000 ($10,820,400)
Part 3. Net Salvage Values, in Year 4 Equipment
Estimated Market Value in Year 4 $2,500,000
Book Value in Year 4 0
Expected Gain or Loss 2,500,000
Taxes paid or tax credit 605,862
Net cash flow from salvage $1,894,138
Part 4. Projected Net Cash Flows (Time line of Annual Cash Flows)
Years 0 1 2 3 4 5 6 7 8
Investment Outlays at Time Zero:
Equipment ($12,000,000)
Operating Cash Flows over the Project’s Life:
Units sold 200,000 206,000 212,180 218,545 225,102 231,855 238,810 245,975
Sales price $65.00 $66.30 $67.63 $68.98 $70.36 $71.77 $73.20 $74.66
Variable costs $30.00 $30.60 $31.21 $31.84 $32.47 $33.12 $33.78 $34.46
Sales revenue $13,000,000 $13,657,800 $14,348,885 $15,074,938 $15,837,730 $16,639,119 $17,481,059 $18,365,600
Variable costs 6,000,000 6,303,600 6,622,562 6,957,664 7,309,722 7,679,594 8,068,181 8,476,431
Nonvariable operating costs 1,600,000 1,632,000 1,664,640 1,697,933 1,731,891 1,766,529 1,801,860 1,837,897
Depreciation (equipment) 1,200,000 2,160,000 1,728,000 1,382,400 1,106,400 884,400 786,000 786,000
Oper. income before taxes (EBIT) $4,200,000 $3,562,200 $4,333,683 $5,036,942 $5,689,717 $6,308,596 $6,825,018 $7,265,272
Taxes on operating income (40%) 1,017,847 863,280 1,050,245 1,220,676 1,378,872 1,528,854 1,654,006 1,760,700
After-tax operating income $3,182,153 $2,698,920 $3,283,438 $3,816,266 $4,310,845 $4,779,742 $5,171,011 $5,504,573
Add back depreciation 1,200,000 2,160,000 1,728,000 1,382,400 1,106,400 884,400 786,000 786,000
Operating cash flow $4,382,153 $4,858,920 $5,011,438 $5,198,666 $5,417,245 $5,664,142 $5,957,011 $6,290,573
Terminal Year Cash Flows:
Required level of net working capital $1,625,000 $1,707,225 $1,793,611 $1,884,367 $1,979,716 $2,079,890 $2,185,132 $2,295,700
Required investment in NWC $0 ($1,625,000) ($82,225) ($86,386) ($90,757) ($95,349) ($100,174) ($105,242) ($110,568)
Terminal Year Cash Flows:
Net salvage value 1,894,138
Net Cash Flow (Time line of cash flows) ($12,000,000) $2,757,153 $4,776,695 $4,925,052 $5,107,909 $5,321,896 $5,563,968 $5,851,769 $8,074,143
Part 5. Key Output: Appraisal of the Proposed Project
Net Present Value $15,336,786
IRR 34.23%
MIRR 21.45%
PI 2.28
Payback (See calculation below) 2.91 3
Data for Payback Years 0 1 2 3 4 5 6 7 8
Net cash flow (12,000,000) 2,757,153 4,776,695 4,925,052 5,107,909 5,321,896 5,563,968 5,851,769 8,074,143
Cumulative CF (12,000,000) (9,242,847) (4,466,152) 458,900 5,566,809 10,888,705 16,452,673 22,304,442 30,378,585
Part of year required for payback 1.00 1.00 0.91 0.00 0.00 0.00 0.00 0.00
Data for Payback Years 0 1 2 3 4 5 6 7 8
Net cash flow 0 0 0 0 0 0 0 0 0
Discounted Cash Flows 0 0 0 0 0 0 0 0 0
Part of year required for payback 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Part 6. Evaluating Risk: Sensitivity Analysis
I. Sensitivity of NPV to Changes in Inputs. Here we use Excel “Data Tables” to find NPVs at different unit sales,
WACC, variable costs, sales price and nonvariable costs–changing one variable at a time, holding other things
constant.
% Deviation 1st YEAR UNIT SALES % Deviation WACC
from Units NPV from NPV
Base Case Sold $15,336,786 D26 Base Case WACC $15,336,786 I27
-10% 180,000 12,169,910 -10% 8.6% 16,462,941
-5% 190,000 13,753,348 -5% 9.1% 15,893,751
0% 200,000 15,336,786 0% 9.6% 15,341,047
5% 210,000 16,920,224 5% 10.0% 14,804,241
10% 220,000 18,503,662 10% 10.5% 14,282,771
% Deviation VARIABLE COST % Deviation SALES PRICE
from Variable NPV from Sales NPV
Base Case Costs $15,336,786 Base Case Price $15,336,786
-20% $24 21,092,643 D28 -10% $59 9,291,982 D27
-10% $27 18,214,715 -5% $62 12,314,384
0% $30 15,336,786 0% $65 15,336,786
10% $33 12,458,858 5% $68 18,359,189
20% $36 9,580,929 10% $72 21,381,591
Note about data tables. The data in the column input should NOT be input using a cell reference to the column input cell. For example, the base case number of units sold in Cell B102 should be the number 1000; you should NOT have the formula =D26 in that cell. This is because you’ll use D26 as the column input cell in the data table and if Excel tries to iteratively replace Cell D26 with the formula =D26 rather than a series of numbers, Excel will calculate the wrong answer. Unfortunately, Excel won’t tell you that there is a problem, so you’ll just get the wrong values for the data table!
% Deviation NONVARIABLE COST
from Fixed NPV
Base Case Costs $15,336,786
-10% $1,440,000 16,034,915 D29
-5% 1,520,000 15,685,850
0% 1,600,000 15,336,786
5% 1,680,000 14,987,722
10% 1,760,000 14,638,658
Deviation NPV at Different Deviations from Base
from Sales Variable Nonvariable
Base Case Price Cost/Unit Units Sold Cost WACC
-10% $9,291,982 $21,092,643 $12,169,910 $16,034,915 $16,462,941
-5% 12,314,384 18,214,715 13,753,348 15,685,850 15,893,751
0% 15,336,786 15,336,786 15,336,786 15,336,786 15,341,047
5% 18,359,189 12,458,858 16,920,224 14,987,722 14,804,241
10% 21,381,591 9,580,929 18,503,662 14,638,658 14,282,771
Range $12,089,609 $11,511,714 $6,333,752 $1,396,257 $2,180,170
-10% -5% 5% 10%
Worst Bad Base Good Best
First year sales (in units) 180,000 190,000 200,000 210,000 220,000
Sales price per unit $ 58.50 $ 61.75 $ 65.00 $ 68.25 $ 71.50
Variable cost per unit $ 33.00 $ 31.50 $ 30.00 $ 28.50 $ 27.00
Nonvariable costs $ 1,760,000 $ 1,680,000 $ 1,600,000 $ 1,520,000 $ 1,440,000
WACC 10.53% 10.05% 9.57% 9.09% 8.61%
5% 25% 40% 25% 5%

Sensitivity Analysis

Sales price -0.1 -0.05 0 0.05 0.1 9291981.5924963653 12314383.926661853 15336786.260827374 18359188.59499288 21381590.929158382 VC -0.1 -0.05 0 0.05 0.1 21092643.179629669 18214714.720228519 15336786.260827374 12458857.801426224 9580929.34202509 Units -0.1 -0.05 0 0.05 0.1 12169910.051897507 13753348.15636244 15336786.260827374 16920224.365292311 18503662.469757251 Non-var. cost -0.1 -0.05 0 0.05 0.1 16034914.705885496 15685850.483356439 15336786.260827374 14987722.038298309 14638657.815769248 WACC -0.1 -0.05 0 0.05 0.1 16462941.04713998 15893751.280006342 15341047.092208713 14804241.213555034 14282770.601494245

Percentage Deviation from Base

NPV ($)

Scenario Summary MP3

Scenario Summary
Base Best Worst Good Bad
Modified by Garza-Gomez, Xavier

Modified by Garza-Gomez, Xavier on 12/14/2021

Modified by Garza-Gomez, Xavier

Modified by Garza-Gomez, Xavier on 12/14/2021
Modified by Brandon Kubenka on 2/27/2022

Modified by Garza-Gomez, Xavier

Modified by Garza-Gomez, Xavier on 12/14/2021
Modified by Brandon Kubenka on 2/27/2022

Created by Garza-Gomez, Xavier

Modified by Garza-Gomez, Xavier on 12/14/2021
Modified by Brandon Kubenka on 2/27/2022

Created by Garza-Gomez, Xavier

Modified by Garza-Gomez, Xavier on 12/14/2021
Modified by Brandon Kubenka on 2/27/2022

Changing Cells:
First year sales (in units) $D$26 0.0591 0.0861 0.1053 0.0909 0.1005
Sales price per unit $D$27 $1,000,000 $1,440,000 $1,760,000 $1,520,000 $1,680,000
Variable cost per unit $D$28 $17,500 $27 $33 $29 $32
Nonvariable costs $D$29 $24,000 $72 $59 $68 $62
WACC $I$27 1,000 220,000 180,000 210,000 190,000
Result Cells:
Net Present Value $D$76 $18,535,561 $30,684,442 $2,822,571 $22,641,168 $8,746,663
IRR $D$77 31.12% 52.83% 15.76% 43.44% 25.06%
MIRR $D$78 19.03% 27.28% 13.49% 24.55% 17.84%
PI $D$79 2.54 3.56 1.24 2.89 1.73
Payback $D$80 3.17 2.03 4.82 2.40 3.64
Probability 0.40 0.10 0.10 0.20 0.20
Expected NPV $ 17,042,492 StDev NPV $ 7,730,187 CV 0.453583119
Expected IRR 33.0% StDev IRR 10.2% 0.3102071811
Expected MIRR 20.2% StDev MIRR 3.9% 0.191787362
Expected PI 2.4202 StDev PI 0.64 0.2661681611
Expected payback 3.16 StDev payback 0.75 0.2380163722
2,229,255,106,430.36 186,102,802,151,362.00 202,206,143,708,283.00 31,345,173,794,533.90 68,820,775,996,744.80
0.00 0.04 0.03 0.01 0.01
0.00 0.01 0.00 0.00 0.00
Squared deviations 0.02 1.29 1.40 0.22 0.48
formulas hidden 0.00 1.27 2.76 0.58 0.23
Students must write the conclusion about the project and comment about its risk
This project should be approved because all the CV values are lower than .5 which makes it a low risk.

CVM Scenarios

Please highlight excluded cells and/or included cells in your analysis
Operating ratios
1/29/21 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007 Average Max Min
Garza-Gomez, Xavier: Formulas must be adjusted to fit the years selected
Range 1/4 of range
Op costs/ sales (excl depreciation) 87.7% 89.5% 92.3% 88.3% 88.7% 89.1% 88.8% 89.5% 89.9% 90.5% 89.5% 90.0% 89.0% 87.4% 86.5% 89.6% 92.3% 88.3% 4.0% 1.0%
Depr / NPPE 4.3% 3.9% 4.5% 4.2% 4.3% 4.4% 4.5% 4.5% 4.7% 4.6% 5.1% 5.4% 5.3% 5.1% 4.9% 4.3% 4.5% 3.9% 0.6% 0.1%
Cash/sales 5.2% 1.0% 0.7% 0.9% 0.9% 0.7% 0.8% 0.7% 1.1% 2.0% 1.3% 1.3% 0.5% 0.6% 0.8% 0.8% 1.0% 0.7% 0.3% 0.1%
Receivables / sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Inventories / Sales 18.1% 18.3% 17.6% 16.6% 16.1% 16.0% 15.8% 17.1% 17.0% 16.6% 17.0% 17.5% 17.0% 15.8% 15.2% 17.6% 18.3% 16.6% 1.7% 0.4%
Net PPE / Sales 21.4% 25.9% 25.8% 28.7% 30.7% 33.1% 35.6% 39.0% 42.5% 43.8% 45.3% 47.6% 47.1% 44.2% 40.4% 25.5% 28.7% 21.4% 7.4% 1.8%
Acc payable / Sales 12.1% 10.6% 11.6% 9.6% 10.2% 9.5% 9.1% 9.4% 9.2% 8.7% 8.9% 9.1% 8.5% 7.7% 7.5% 11.5% 12.1% 10.6% 1.5% 0.4%
Accruals / Sales 2.4% 2.0% 1.9% 2.0% 2.1% 2.3% 2.3% 2.3% 2.2% 2.0% 1.4% 1.2% 0.9% 0.9% 0.8% 2.2% 2.3% 2.0% 0.4% 0.1%
1/29/21 01/31/2020 02/01/2019 02/02/2018 02/03/2017 01/29/2016 01/30/2015 01/31/2014 02/01/2013 02/03/2012 01/28/2011 01/29/2010 01/30/2009 02/01/2008 02/02/2007
Growth Analysis 3yr growth 5yr growth 7yr growtn 10yr growth 14 yr growth
Audit Status 89597000 72148000 71309000 68619000 65017000 59074000 56223000 53417000 50521000 50208000 48815000 47220000 48230000 48283000 46927000
Geometric growth 9.3% 8.7% 7.7% 6.3% 6.7% Analyst must pick one of these numbers as expected growth in the near term
Total revenues growth 24.2% 1.2% 3.9% 5.5% 10.1% 5.1% 5.3% 5.7% 0.6% 2.9% 3.4% -2.1% -0.1% 2.9% Arithmetic growth 9.8% 9.0% 7.9% 6.4% 4.9%
Current value Average value Minor improvement Mild recession Major improvement Continued deterioration Minor improvement Mild recession Major improvement Continued deterioration
Using most recent values as starting point Using AVERAGE VALUES as starting point
Op costs/ sales (excl depreciation) 87.7% 89.6% 88.3% 88.7% 88.3% 89.7% 88.6% 90.6% 88.3% 91.6%
Depr / NPPE 4.3% 4.3% 4.2% 4.5% 4.1% 4.5% 4.1% 4.4% 4.0% 4.5%
Cash/sales 5.2% 0.8% 5.2% 1.0% 5.1% 1.0% 0.7% 0.9% 0.7% 1.0%
Receivables / sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Inventories / Sales 18.1% 17.6% 17.7% 18.3% 17.2% 18.3% 17.2% 18.1% 16.8% 18.3%
Net PPE / Sales 21.4% 25.5% 21.4% 23.2% 21.4% 25.1% 23.6% 27.3% 21.8% 28.7%
Acc payable / Sales 12.1% 11.5% 12.1% 11.8% 12.1% 11.4% 11.8% 11.1% 12.1% 10.7%
Accruals / Sales 2.4% 2.2% 2.3% 2.3% 2.3% 2.2% 2.3% 2.1% 2.3% 2.0%
Student must decide which subset of scenarios makes more sense (the ones that use average values of the ones that use the most recent value)
Base selected (1 for current value, 2 for average) 1 Manually adjusted by analyst
Current value Average value Minor improvement Mild recession Major improvement Continued deterioration
Using most recent values as starting point
Op costs/ sales (excl depreciation) 87.7% 89.6% 88.3% 88.7% 88.3% 89.7%
Depr / NPPE 4.3% 4.3% 4.2% 4.5% 4.1% 4.5%
Cash/sales 5.2% 0.8% 5.2% 1.0% 5.1% 1.0%
Receivables / sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Inventories / Sales 18.1% 17.6% 17.7% 18.3% 17.2% 18.3%
Net PPE / Sales 21.4% 25.5% 21.4% 23.2% 21.4% 25.1%
Acc payable / Sales 12.1% 11.5% 12.1% 11.8% 12.1% 11.4%
Accruals / Sales 2.4% 2.2% 2.3% 2.3% 2.3% 2.2%
Sales growth
Year 1 (short term growth) 24.2% 6.7% 25.2% 23.2% 26.2% 22.2% Current values or historical average
Year 2 (short term growth) 14.3% 5.6% 15.1% 13.6% 15.8% 12.8% Automatic formula: simple average of year 1 and year 3
Year 3 (long term growth) 4.5% 4.5% 5.00% 4.00% 5.5% 3.5% Manually adjusted by analyst
Year 4 (long term growth) 4.5% 4.5% 5.00% 4.00% 5.5% 3.5% Automatic formula: same as year 3
WACC 9.57%
Most optimistic
best 5.0%
good 4.50%
base 4.0%

Growth

Total Revenue 39115 39479 39843 40207 40571 40942 41306 41670 42034 42398 42769 43133 43497 43861 44225 2.8895944765273684E-2 -1.097694840834218E-3 -2.0941322828115227E-2 3.377806014400675E-2 2.8536310560278499E-2 6.234066284257489E-3 5.7322697492131924E-2 5.2530093415953827E-2 5.0708784661081863E-2 0.10060263398449409 5.5400895150499174E-2 3.9201970299771238E-2 1.176569577472697E-2 0.24185008593446811

Scenario Summary

Scenario Summary
Current Values: Continuation Averages Minor improvement Mild deterioration Major improvement Continued deterioration
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Modified by Garza-Gomez, Xavier on 12/14/2021
Modified by Brandon Kubenka on 3/9/2022
Modified by Brandon Kubenka on 3/10/2022
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Modified by Garza-Gomez, Xavier on 12/14/2021
Modified by Brandon Kubenka on 3/9/2022
Modified by Brandon Kubenka on 3/10/2022
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Modified by Garza-Gomez, Xavier on 12/14/2021
Modified by Brandon Kubenka on 3/9/2022
Modified by Brandon Kubenka on 3/10/2022
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Modified by Garza-Gomez, Xavier on 12/14/2021
Modified by Brandon Kubenka on 3/9/2022
Modified by Brandon Kubenka on 3/10/2022
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Modified by Garza-Gomez, Xavier on 12/14/2021
Modified by Brandon Kubenka on 3/9/2022
Modified by Brandon Kubenka on 3/10/2022
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Modified by Garza-Gomez, Xavier on 12/14/2021
Modified by Brandon Kubenka on 3/9/2022
Modified by Brandon Kubenka on 3/10/2022
Changing Cells:
$B$19 88% 88% 90% 88% 89% 88% 90%
$B$20 4% 4% 4% 4% 4% 4% 4%
$B$21 5% 5% 1% 5% 1% 5% 1%
$B$22 0% 0% 0% 0% 0% 0% 0%
$B$23 18% 18% 18% 18% 18% 17% 18%
$B$24 21% 21% 25% 21% 23% 21% 25%
$B$25 12% 12% 11% 12% 12% 12% 11%
$B$26 2% 2% 2% 2% 2% 2% 2%
$C$18 24.2% 24.2% 6.7% 25.2% 23.2% 26.2% 22.2%
$D$18 14.3% 14.3% 5.6% 15.1% 13.6% 15.8% 12.8%
$E$18 4.5% 4.5% 4.5% 5.0% 4.0% 5.5% 3.5%
Result Cells:
$B$94 168,201,426 168,201,426 108,847,621 222,494,382 137,678,193 195,847,844 109,074,245
$B$111 201.27 201.27 120.07 209.41 159.51 239.09 120.38
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.

CV model

Chapter 12
Inputs from Income Statement for the Year Ending December 31 (Thousands of Dollars)
Jan-21
Net Sales $ 89,597,000 Estimated stock price
Number of shares (in millions) 731,000 $ 201.27
Inputs from Balance Sheets for December 31 (Thousands of Dollars)
Marketable Securities 706,000 Notes payable 1,112,000
Long-term bonds 20,668,000
Preferred stock
Projected ratios and selected information for the current and projected years are shown below.
Main inputs for the model Actual Projected Projected Projected Projected
Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Stay the same Average value Minor improvement Mild recession Major improvement Continued deterioration
Sales Growth Rate 24.2% 14.3% 4.5% 4.5%
Costs / Sales 88% 88% 88% 88% 88% Costs / Sales $B$19 0.8767 0.8959 0.8829 0.8867 0.8829 0.8967
Depreciation / Net PPE 4% 4% 4% 4% 4% Depreciation / Net PPE $B$20 0.0434 0.0427 0.0420 0.0448 0.0406 0.0448
Cash / Sales 5% 5.2% 5.2% 5.2% 5.2% Cash / Sales $B$21 0.0523 0.0081 0.0516 0.0099 0.0508 0.0099
Acct. Rec. / Sales 0% 0% 0% 0% 0% Acct. Rec. / Sales $B$22 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Inventories / Sales 18% 18% 18% 18% 18% Inventories / Sales $B$23 0.1807 0.1764 0.1766 0.1827 0.1724 0.1827
Net PPE / Sales 21% 21% 21% 21% 21% Net PPE / Sales $B$24 0.2138 0.2546 0.2138 0.2322 0.2138 0.2506
Acct. Pay. / Sales 12% 12% 12% 12% 12% Acct. Pay. / Sales $B$25 0.1215 0.1146 0.1215 0.1176 0.1215 0.1138
Accruals / Sales 2% 2.4% 2.4% 2.4% 2.4% Accruals / Sales $B$26 0.0241 0.0221 0.0233 0.0232 0.0233 0.0222
Tax rate 24% 24% 24% 24% 24%
Weighted average cost of capital (WACC) 9.57% 9.6% 9.6% 9.6% 9.6% Growth year1 $C$18 0.2419 0.0668 0.2519 0.2319 0.2619 0.2219
Growth year 2 $D$18 0.1434 0.0559 0.1509 0.1359 0.1584 0.1284
a. Forecast the parts of the income statement and balance sheets necessary to calculate free cash flow. Long term growth $E$18 0.0450 0.0450 0.0500 0.0400 0.0550 0.0350
Partial Income Statement for the Year Ending December 31 (Thousands of Dollars)
Actual Projected Projected Projected Projected
Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
Net Sales $ 89,597,000.0 $ 111,270,514.3 $ 127,226,706.1 $ 132,951,907.8 $ 138,934,743.7
Costs (except depreciation) $ 78,549,689.9 $ 97,550,859.9 $ 111,539,653.2 $ 116,558,937.6 $ 121,804,089.8
Depreciation $ 831,363.4 $ 1,032,470.2 $ 1,180,526.4 $ 1,233,650.1 $ 1,289,164.4
Total operating costs $ 79,381,053.3 $ 98,583,330.1 $ 112,720,179.6 $ 117,792,587.7 $ 123,093,254.2
Earning before int. & tax $ 10,215,946.7 $ 12,687,184.2 $ 14,506,526.4 $ 15,159,320.1 $ 15,841,489.5
Partial Balance Sheets for December 31 (Thousands of Dollars)
Actual Projected Projected Projected Projected
Operating Assets Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
Cash $ 4,685,923.1 $ 5,819,447.9 $ 6,653,956.7 $ 6,953,384.8 $ 7,266,287.1
Accounts receivable $ – $ – $ – $ – $ –
Inventories $ 16,190,177.9 $ 20,106,581.9 $ 22,989,865.8 $ 24,024,409.7 $ 25,105,508.2
Net plant and equipment $ 19,155,838.6 $ 23,789,636.0 $ 27,201,069.8 $ 28,425,117.9 $ 29,704,248.2
Operating Liabilities
Accounts Payable $ 10,886,035.5 $ 13,519,367.5 $ 15,458,044.8 $ 16,153,656.8 $ 16,880,571.4
Accruals $ 2,159,287.7 $ 2,681,619.4 $ 3,066,163.6 $ 3,204,141.0 $ 3,348,327.3
b. Calculate free cash flow for each projected year. Also calculate the growth rates of free cash flow each year to ensure that there is constant growth (i.e., the same as the constant growth rate in sales) by the end of the forecast period.
Actual Projected Projected Projected Projected
Calculation of FCF Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
Operating current assets 20,876,101.0 25,926,029.8 29,643,822.5 30,977,794.5 32,371,795.3
Operating current liabilities 13,045,323.2 16,200,986.9 18,524,208.4 19,357,797.8 20,228,898.7
Net operating working capital 7,830,777.8 9,725,042.9 11,119,614.1 11,619,996.7 12,142,896.6
Net PPE 19,155,838.6 23,789,636.0 27,201,069.8 28,425,117.9 29,704,248.2
Net operating capital 26,986,616.4 33,514,678.9 38,320,683.9 40,045,114.6 41,847,144.8
NOPAT 7,740,166.9 9,612,513.3 10,990,947.7 11,485,540.3 12,002,389.7
Investment in operating capital na 6,528,062.5 4,806,005.0 1,724,430.8 1,802,030.2
Free cash flow na 3,084,450.8 6,184,942.7 9,761,109.6 10,200,359.5
Growth in FCF na na 100.5% 57.8% 4.5%
Growth in sales 24.2% 14.3% 4.5% 4.5%
c. Calculate operating profitability (OP=NOPAT/Sales), capital requirements (CR=Operating capital/Sales), and return on invested capital (ROIC=NOPAT/Operating capital at beginning of year). Based on the spread between ROIC and WACC, do you think that the company will have a positive market value added (MVA= Market value of company – book value of company = Value of operations – Operating capital)?
Actual Projected Projected Projected Projected
Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
Operating profitability
(OP=NOPAT/Sales)
8.6% 8.6% 8.6% 8.6% 8.6%
Capital requirement
(CR=Operating capital/Sales)
30.1% 30.1% 30.1% 30.1% 30.1%
Return on invested capital
(ROIC=NOPAT/Operating capital at
start of year)
na 35.6% 32.8% 30.0% 30.0%
Weighted average cost of capital (WACC) na 9.6% 9.6% 9.6% 9.6%
Spread between ROIC and WACC na 26.0% 23.2% 20.4% 20.4%
Yes, because the spread is positive, the company should have a positive MVA.
d. Calculate the value of operations and MVA. (Hint: first calculate the horizon value at the end of the forecast period, which is equal to the value of operations at the end of the forecast period.
Actual Projected Projected Projected Projected
Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
Free cash flow 3,084,450.8 6,184,942.7 9,761,109.6 10,200,359.5
Long-term constant growth in FCF 4.5%
Weighted average cost of capital (WACC) 9.6% 9.6% 9.6% 9.6% 9.6%
Horizon value 210,088,965.9
FCF in Years 1-3 and FCF4 + horizon value in Year 4 3,084,450.8 6,184,942.7 9,761,109.6 220,289,325.4
Value of operations (PV of FCF + HV) 168,201,426
Operating capital 26,986,616
Market value added (MVA=Market value of company – book value of company = Value of operations – Operating capital) 141,214,810
e. Calculate the price per share of common equity
Actual
Jan-21
Value of Operations 168,201,426
Plus Value of Mkt. Sec. 706,000
Total Value of Company 168,907,426
Less Value of Debt 21,780,000
Less Value of Pref. -0
Value of Common Equity 147,127,426
Divided by number of shares 731,000
Price per share 201.27
% Deviation from Sales growth (LT) Stock price % Deviation from WACC Stock price
Base Case $201.27 Base Case 201.27
-10% 4.1% 185.95 -10% 8.6% 257.44
-5% 4.3% 193.28 -5% 9.1% 226.52
0% 4.5% 201.27 0% 9.6% 201.45
5% 4.7% 210.00 5% 10.0% 180.71
10% 5.0% 219.57 10% 10.5% 163.28
% Deviation from Cost/Sales Stock price % Deviation from Net PPE/Sales Stock price
Base Case $201.27 Base Case $201.27
-10% 58.8% 917.17 B19 -10% 18.9% $208.25 B24
-5% 62.0% 836.29 -5% 20.0% $205.29
0% 65.3% 755.41 0% 21.0% $202.34
5% 68.6% 674.53 5% 22.1% $199.38
10% 71.8% 593.65 10% 23.1% $196.43
% Deviation from Dep/Net PPE
Base Case $201.27
-10% 3.6% $205.19 B20
-5% 3.8% $204.13
0% 4.0% $203.07
5% 4.2% $202.01
10% 4.4% $200.95
Stock price at Different Deviations from Base
Deviation from Base Case Net PPE/Sales Cost/Sales Sales growth (LT) Dep/Net PPE WACC
-10% $208.25 $917.17 $185.95 $205.19 $257.44
-5% $205.29 $836.29 $193.28 $204.13 $226.52
0% $202.34 $755.41 $201.27 $203.07 $201.45
5% $199.38 $674.53 $210.00 $202.01 $180.71
10% $196.43 $593.65 $219.57 $200.95 $163.28
Range $12 $324 $34 $4 $94

Sensitivity Analysis

Net PPE/Sales -0.1 -0.05 0 0.05 0.1 208.24532518597402 205.29151577132504 202.33770635668003 199.38389694203201 196.43008752739351 Cost/Sales -0.1 -0.05 0 0.05 0.1 917.1673818410917 836.28817187832101 755.40896191556351 674.52975195278714 593.65054199002032 Sales growth (LT) -0.1 -0.05 0 0.05 0.1 185.94805266624175 193.2831009577074 201.26870866376163 209.995441017817 219.5714915465403 Dep/Net PPE -0.1 -0.05 0 0.05 0.1 205.18786993991807 204.12863716257547 203.06940438523779 202.01017160790462 200.95093883056305 WACC -0.1 -0.05 0 0.05 0.1 257.43512968760245 226.51690275843677 201.44616969693146 180.70990476807364 163.27557848509082

Percentage Deviation from Base

Share price

Scenario Summary MP4

Scenario Summary
Continuation Averages Minor improvement Mild deterioration Major improvement Continued deterioration
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Created by Garza-Gomez, Xavier
Modified by Garza-Gomez, Xavier on 4/22/2019
Modified by Garza-Gomez, Xavier on 4/12/2021
Changing Cells:
Costs / Sales $B$19 88% 88% 90% 88% 89% 88% 90%
Depreciation / Net PPE $B$20 4% 4% 4% 4% 4% 4% 4%
Cash / Sales $B$21 5% 5% 1% 5% 1% 5% 1%
Acct. Rec. / Sales $B$22 0% 0% 0% 0% 0% 0% 0%
Inventories / Sales $B$23 18% 18% 18% 18% 18% 17% 18%
Net PPE / Sales $B$24 21% 21% 25% 21% 23% 21% 25%
Acct. Pay. / Sales $B$25 12% 12% 11% 12% 12% 12% 11%
Accruals / Sales $B$26 2% 2% 2% 2% 2% 2% 2%
Growth year1 $C$18 24.2% 24.2% 6.7% 25.2% 23.2% 26.2% 22.2%
Growth year 2 $D$18 14.3% 14.3% 5.6% 15.1% 13.6% 15.8% 12.8%
Long term growth $E$18 4.5% 4.5% 4.5% 5.0% 4.0% 5.5% 3.5%
Result Cells:
Value of operations $B$94 168,201,426 168,201,426 108,847,621 222,494,382 137,678,193 195,847,844 109,074,245
Price per share $B$111 201.27 201.27 120.07 209.41 159.51 239.09 120.38
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created.
Total
Assigned probabilities 50% 0%
Garza-Gomez, Xavier: Must match the scenario chosen in previoust sheets

20% 20% 5% 5% 100%
Garza-Gomez, Xavier: Probability must total 100%
Sq Deviation 79 5230 290 1081 2181 5185
Expected price
192.39
Standard deviation
26
One-standard deviation range
From to
166.28 218.50
HOLD if current price is in range
BUY if current price is below
SELL if current price is above Current price is 227.6
Based on standard deviation
recommendation would be SELL
Expected price
192.39
Allowed variation
10%
Lower limit Upper limit
173.15 211.63
HOLD if current price is in range
BUY if current price is below
SELL if current price is above Current price is 227.6
Based on allowed variation
recommendation would be SELL
Sensitivity analysis Student must clearly say if he/she would buy/hold or sell the stock based on all the calculations
Please include your observations about the range of prices and state how confident you are in your analysis
Recommendation I recommend sell/hold/buy this stock because …
Allowed variation SELL
5% SELL
10% SELL
15% SELL
20% HOLD
25% HOLD
30% HOLD
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