Carefully read Lowe's annual report (or 10K) for the most recent year and answer the following questions:

a). Look at the Management Discussion and Analysis (MDA) on Financial Condition and Results of Operations presented in Lowe's annual reports. Summarize the information discussed in the MDA that you feel is interesting and has significant relevance.

b). What does the information below say about the company's operations?

  
 

Transcribed Image Text:

Item 6- Selected Financial Data Selected Statement of Earnings Data (In millions, except per share data) Net sales Gross margin Operating income Net earnings Basic earnings per common share Diluted earnings per common share Dividends per share Selected Balance Sheet Data Total assets4 Long-term debt, excluding current maturities $ $ $ $ 2019 72.148 $ 22.943 6,314 4,281 5.49 5.49 2.13 39.471 16,768 $ $ $ 2018¹ 71,309 22,908 4,018 2.314 2.84 2.84 1.85 $ $ $ 34.508 14,391 $ 2017 $ 68,619 22.434 6,586 3,447 4.09 4.09 1.58 $ 35.291 $ 15,564 $ 20162,3 65,017 21,674 5,846 3.093 3.48 3.47 1.33 $ $ $ 34,408 14.394 $ 2015 59,074 19.933 4,971 2.546 2.73 2.73 1.07 31.266 11.545 1 Effective February 3, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and all related amendments, using the modified retrospective method. Therefore, results for reporting periods beginning after February 2, 2018 are presented under ASU 2014-09, while comparative prior period amounts have not been restated and continue to be presented under accounting standards in effect in those periods. 2 Fiscal 2016 contained 53 weeks, while all other years contained 52 weeks. 3 Fiscal 2016 includes the acquisition of RONA inc. 4 Effective February 2, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), and all related amendments, using the optional transition approach to not restate comparative periods and recognized the cumulative impact of adoption in the opening balance of retained earnings. Therefore, results for reporting periods beginning after February 1, 2019 are presented under ASU 2016-02, while comparative prior period amounts have not been restated and continue to be presented under accounting standards in effect in those periods. Item 6- Selected Financial Data Selected Statement of Earnings Data (In millions, except per share data) Net sales Gross margin Operating income Net earnings Basic earnings per common share Diluted earnings per common share Dividends per share Selected Balance Sheet Data Total assets4 Long-term debt, excluding current maturities $ $ $ $ 2019 72.148 $ 22.943 6,314 4,281 5.49 5.49 2.13 39.471 16,768 $ $ $ 2018¹ 71,309 22,908 4,018 2.314 2.84 2.84 1.85 $ $ $ 34.508 14,391 $ 2017 $ 68,619 22.434 6,586 3,447 4.09 4.09 1.58 $ 35.291 $ 15,564 $ 20162,3 65,017 21,674 5,846 3.093 3.48 3.47 1.33 $ $ $ 34,408 14.394 $ 2015 59,074 19.933 4,971 2.546 2.73 2.73 1.07 31.266 11.545 1 Effective February 3, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and all related amendments, using the modified retrospective method. Therefore, results for reporting periods beginning after February 2, 2018 are presented under ASU 2014-09, while comparative prior period amounts have not been restated and continue to be presented under accounting standards in effect in those periods. 2 Fiscal 2016 contained 53 weeks, while all other years contained 52 weeks. 3 Fiscal 2016 includes the acquisition of RONA inc. 4 Effective February 2, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), and all related amendments, using the optional transition approach to not restate comparative periods and recognized the cumulative impact of adoption in the opening balance of retained earnings. Therefore, results for reporting periods beginning after February 1, 2019 are presented under ASU 2016-02, while comparative prior period amounts have not been restated and continue to be presented under accounting standards in effect in those periods.

Answer rating: 100% (QA)

a Look at the Management Discussion and Analysis MDA on Financial Condition and Results of Operations presented in Lowes annual reports Summarize the information discussed in the MDA that you feel is ... View the full answer