Business Administration 2257 Lecture Notes - Lecture 5: Cash Flow, Current Liability, Negative Zone
26 May 2016
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Document Summary
Strong annual sales projection -10% between 2012 and 2015. Low interest rates in real estate was among the lowest at 2. 4 % in 2012 and. Prices of hardware and tools remain relatively unchanged stiffening overall profit margins. Seasonal industry affected by economic growth: slow winter months due to lack of renovation projects. Extremely competitive industry three big competing companies: lowe"s current strategy: Aggressive expansion throughout canada, mexico, us, australia. Upstaging competition targeting specific run down competition stores in order to move in on opportunity and gain: cash flow evaluation. Increase in overall net earnings from positive to the engine of the business. Inventory has grown with net earnings correlation. Other current liabilities has come out of negative zone and increased to. Current portion long-term debt increased significantly. Dividends have increased significantly shareholders drawing earnings out of the company, not proportional to net earnings increase. Investment in property has decreased, but long term investment has increased: financial ratios.
