Final Report Home Depot vs. Lowes

Final ReportThe purpose of this paper is to provide our final compend of reviewing specie flows, account and describe three of the largest variable expenses, exempt the v operational expenses of family stock and Lowes and to determine which iodine is give managed from the perspectives of profitability, asset utilization, risk management and hard funds flow management. First, I will review the consolidated statements of bullion flow for twain companies for the three most recent fiscal years and identify how much currency was generated by operating, support coronation funds activities and separate significant events that affected the cash position. The statement of cash flows for both Home Depot and Lowe?s are objective views of the financial legal action of the organizations. However, the results of cash flows activity are quite different. Lowe?s has had consistent add-ons in net cash provided by operating activities with a 25% step-up from 2004 to 2005 and a 17% join on from 2005 to 2006. On the other hand, Home Depot showed virtually no change from 2004 to 2005 and a 16% increase in net cash from operating activities from 2005 to 2006. Lowe?s attri onlyed their positive numbers from memory a lower investment in inventory.

Lowe?s old component of cash flows from invest activities was almost exclusively from investing in fresh stores, remodeling and remerchandising subsisting stores and specific investment in their distribution center as well as their instruction technology infrastructure. Home Depot?s net cash used for investing activities had almost no change (2%) from 2004 to 2005 b ut had a dramatic increase from 2005 to 2006! of 67%. This was primarily ascribable to aggressive business accomplishment strategy. Home Depot spent $4.3 billion to acquire 15 business entities along with outlay $3.5 billion in new stores, existing store modernization and their technology infrastructure. This trend appears to await in... If you want to get a full essay, order it on our website: BestEssayCheap.com

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