Problem
Explain what each of the five ratios mean. Compare and contrast the ratios to the other company and industry. Identify and explain which ratios are the most important to you in your investment decision and why.
Ratio Comparison Table
|
Comparison from D&B
AS OF FEB 10,2023
|
HOME DEPOT
|
LOWS
|
Home Improvement Retail
|
|
1. Net Profit Margin
|
10.87%
|
6.97%
|
9.29%
|
|
2. Return on Assets
|
22.81%
|
13.83%
|
18.69%
|
|
3. Return on Equity
|
146.50%
|
NA
|
-649.62%
|
|
4. Asset Turnover
|
2.1
|
1.99
|
2.01
|
|
5. Current Ratio
|
1.01
|
1.02
|
1.31
|