Financial analysis report - Case Study Example

Table 1 Dupont Dupont Result 2011 2010 2009 Lowe 0.11 0.09 0.12 Home Depot 0.18 0.14 0.13 John Guerard (37) emphasized the Dupont formula is a useful tool for making financial decisions. making. Based on the Dupont data above, it is highly recommended that the company should increase the number of stores selling the company’s products and services. The company should focus on selling more quality products and offering more quality services to the clients. The company should also engage in research and development to discover new products.

The company should also improve the quality of the company’s current home improvement products and services. The company should sell the products at affordable prices. The company should advertise the many benefits of buying the company’s products and services. The company’s advertisement expense should represent 10 percent of the company’s total expenses shown in the balance sheet. The company must target a ten percent increase in its current month’s sales. An Based on the financial statements of Lowe Company and Home Depot Company, the Dupont results strong state that the Lowe’s company the companies’ discrete operational and marketing activities significantly influence the overall return on assets for both companies.

The Dupont financial statement calculation indicates that Lowe’s generated a 0.12 Dupont during 2009. . n is .11 Based on the Home Depot calculation, the Dupont results strong state that the company the companies’ discrete operational and marketing activities significantly influence the overall return on assets for both companies. The Dupont financial statement calculation indicates that Home Depot’s generated a .13 Dupont during 2009. The 2010 Dupont computation shows the company generated an increase in the Dupont results.

The 2010 Dupont financial statement calculation is .14. The 2011 Dupont computation shows the company generated an increase in the Dupont results. The 2011 Dupont financial statement calculation is .18 Change over time analysis of what's going on using additional financial and performance data. Home Depot’s setting up more stores compared to Lowe’s is the main reason for Home Depot’s taking the lone spot as the world’s no. 1 home improvement retail store. Setting more branches precipitates to more revenues.

Table 2 Net Profit Margin 2011 2010 2009 Lowe 0.04 0.04 0.05 Home Depot 0.05 0.04 0.03 Based on the financial statements of Lowe Company and Home Depot Company, the Net profit margin results strong state that the company the companies’ discrete operational and marketing activities significantly influence the corresponding net profit margin for both companies. The net profit margin indicates that Lowe’s generated a 0.05 result. The 2010 net profit margin computation shows the company generated a decrease in the net profit margin result.

The 2010 net profit margin is .04. The 2011 net profit margin computation shows the company generated an increase in the net profit margin results. The 2011 Dupont financial statement calculation is .04 The Net profit margin results strong state that the company the companies’ discrete operational