Ethics and Compliance
Matt Itter, Sarah Gustafson, Shane Bumgardner, Tanya Baker, Adam Caldwell
August 6, 2012
Ethics and Compliance Paper
Team B has chosen to analyze the annual filings for Lowe’s Companies Inc. In this paper we will go over the last two years of SEC filings for this company and we will analyze the information provided by those reports. Team B will look at the role of ethics and compliance in the company’s financial environment, we will discuss the procedures that are in place to ensure ethical behavior, we will also take a look at the financial market in the United States that this company operates in. Lowe’s must also ensure that it follows all SEC regulations in order to …show more content…
These reports are one example of the processes that Lowes has in place to ensure that the organization remains in compliance with SEC rules and regulations.
Lowe's Financial Performance over past two years using Financial Ratios Looking at the information from Lowe's annual report and SEC filings for the past two years, Team B will calculate the ratios for each year using current ratio, debt ratio, return on equity ratio, and day’s receivable ratio. Finding financial performance will allow Lowe's to have the tools they need for all its operations. It will also give the company a view of anything that could get in the way of operating activities. Lowe's evaluates liquidity and profitability levels on a consistent basis and the leaders in the company will use this information to help the company in the long-term. Management can help lead by using the evaluation to help prevent any loses financially and hope for a growth in sales. The current ratio measures Lowe's ability to pay short-term debts and other current liabilities by comparing current assets to current liabilities. The formula is: Current Ratio = Current Assets/Current Liabilities. If the current ratio is 1, it means the book value of current assets is exact with the book value of current liabilities. Investors will look to see if they have more assets than liabilities. If it is less than one, the company might have issues for