Napachat Payackapan (Jill)

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Lowe's working capital turnover ratio is currently 1.16, which is less than the ideal ratio ranging between 1.5 and 2, indicative of a negative working capital.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Although Lowe's CCC has improved since last year, its main competitor, Home Depot, has a CCC of 31 days (fiscal 2020), which is 2 days less than Lowe's.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Lowe's cash conversion cycle for fiscal 2020 was 33 days, decreasing from 36 days in fiscal 2019, which indicates that Lowe's is able to collect cash 3 days faster from the time materials for the product sold is purchased.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 During the third quarter, Lowe's repurchased 13.7 million shares for $2.9 billion and paid $563 million in dividends. This incremental share repurchase supports Lowe's long-term commitment to returning excess capital to shareholders.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Lowe's recently reported net earnings of $1.9 billion and diluted EPS of $2.73 for this year's third quarter. Compared to the third quarter in 2020, diluted EPS increased 38% from adjusted diluted EPS of $1.98.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 At the start of September 2021, Lowe's stock was valued at $203.43 but reached the highest value its been in six months of $252.63 on November 24, 2021. That's something to be grateful for!

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Venture capital is generally expensive because many companies fail to provide a positive return to investors.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Underpricing of bond offerings is usually not a concern because pricing a bond accurately is not a issue due to comparable bonds being readily observed.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Usually debt offerings are more common than equity offerings because large companies can easily access public debt markets. On the other hand, small companies going public often offer equity.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Lowe's annual dividend yield is 1.18%, whihch is lower than than the US market average of 4.24%.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Lowe's has recently declared a quarterly cash dividend of $0.80 per share to shareholders, payable November 3, 2021.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 In fiscal 2020, Lowe's earnings per share was $7.77 and dividends per share was $2.30, this indicates that its payout ratio was 29.6%.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 As of July 2021, Lowe's ROIC was 37.82%, indicating that Lowe's is able to generate higher returns on investment than the amount used to raise the capital needed for that investment

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Lowe's has a relatively high capital expenditure because most of the capital expenditures are being reinvested back into existing store companies

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 As of 11/07/2021, Lowe's weighted average capital of cost is 7.77%, decreasing from 8.09% from 4 days ago, indicating there is less (and decreasing) risk associated with Lowe's operations

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Beta can be used to measure risk of investing in stocks over a 5-year period. Lowe's current beta value is 1.29 (greater than 1), indicating that its stocks have been more volatile compared to the market.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Lowe's cash flow provided by operating activities in fiscal 2020 was more than double the amount in fiscal 2019, indicating a low cash low risk.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 When Lowe's was expanding by opening 140 new stores in 2004, this would be an example of systematic risk, as this strategy affected not only a single asset.

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Lowe's forecasted capital expenditure for fiscal 2020 was predicted to be $1.6 billion, but it was actually $1.8 billion. This significant difference may be due to unforeseen circumstances, such as COVID19

[Napachat Payackapan (Jill) @Fall21LOWCFO]

@ProfLowell #FIN2209 Lowe's allocated 10% of its capital expenditure towards strategic initiatives in fiscal 2020, but is planning on increasing this to 30% in fiscal 2021, indicating that Lowe's may be planning something for the coming year...