The Home Leader -Vs- Improving Home Improvements

Home Depot / Lowe's Financial Analysis 1

Running head: THE HOME LEADER -VS- IMPROVING HOME IMPROVEMENTS

The Home Leader -vs- Improving Home Improvements

James J. Elliott

Capella University

Douglas Smith, PhD

Accounting and Finance in Organizations

Home Depot / Lowe's Financial Analysis 2

Abstract

An industry of competition, and tight margins The Home Depot, and Lowe's Company are still at it. Both of these companies stand now as the industry standard for the home improvement sector. The numbers that will be presented in this study show proof that both companies have extremely strong financial positions, and a long future in the home improvement industry. Competition is good for the retailer, but even better for the customer. Each company has its strengths and limitations. The decision on which retailer is the better one must be decided by the individual analyzing of each company. The Home Leader -vs- Improving Home Improvements.

Home Depot / Lowe's Financial Analysis 3

Table of Contents

The Home Depot Company............................................................................................................4

Introduction.............................................................................................................................................4

Business Description / Strategic Analysis................................................................................................5

Strategy, Products and Market Overview.................................................................................................5

Financial Statements Analysis..................................................................................................................7

The Lowe's Company.....................................................................................................................8

Introduction.............................................................................................................................................8

Business Description / Strategic Analysis................................................................................................9

Financial Statements Analysis................................................................................................................10

Cash Flow Statements...................................................................................................................10

Home Depots Cash Flow Statement.......................................................................................................10

Lowe's Cash Flow Statement..................................................................................................................11

Solvency, Liquidity, and Profitability...........................................................................................12

Home Depots Solvency, liquidity, and profitability...............................................................................12

Lowe's Solvency, liquidity, and profitability..........................................................................................13

Impacting Regulatory Bodies.......................................................................................................13

Investment Bankers.......................................................................................................................14

Conclusion...................................................................................................................................14

Refrences......................................................................................................................................16

Appendix A................................................................................................................................187

The Home Depot Company..................................................................................................................187

Consolidated Statements of Earnings...............................................................................................................188

Consolidated Balance Sheets..........................................................................................................................189

Consolidated Statements of Stockholders' Equity and Comprehensive Income................................................20

Consolidated Statements of Cash Flows............................................................................................................21

Appendix B..................................................................................................................................22

The Lowe's Company Inc......................................................................................................................22

Consolidated Statements of Earnings.................................................................................................................23

Consolidated Balance Sheets............................................................................................................................24

Consolidated Statements of Stockholders' Equity and Comprehensive Income................................................25

Consolidated Statements of Cash Flows............................................................................................................26

Home Depot / Lowe's Financial Analysis 4

The Home Leader -vs- Improving Home