The Home Depot

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The Home Depot

This document discusses the operational and financial status of The Home Depot (Home Depot) and its primary competitor Lowe's in the home improvement industry.

2,645 words () | 9 sources | APA | 2007 United States

Paper Summary:

This paper uses financial criteria, such as return on equity (ROE), return on assets (ROA), debt ratios, stock performance and price, which the author believes are the only true reliable metrics, to examine and compare The Home Depot (Home Depot) with its primary competitor Lowe's. The author concludes that, while Home Depot is the industry leader, Lowe's is a strong performer. The paper stresses that both competitors are highly susceptible to market downturns in the housing industry. The author includes a discussion of Home Depot's training program. The paper includes several tables, charts and graphs.

Table of Contents:
Industry Overview
Competitor Analysis-Lowe's Company Overview
Financial Operations
Home Depot Company Overview
Financial Operations
Business Participant Interview

From the Paper:

"Home Depot's earnings over the past three fiscal years have been just as impressive: $5.8b, $5.0b, and $4.3b respectively. Home Depot has not only managed to greatly increase the number and variety of its locations but did so while maintaining profitability and without sacrificing its operational integrity. Home Depot is a strong performer both operationally and financially. Its earnings, income, and ratios all signal that the company is a strong investment and should be added to any portfolio."

Sample of Sources Used:

Global home improvement retail market. (2006). Datamonitor, April.
Home depot SWOT analysis. (2005). Home Depot SWOT, Datamonitor, August.
Leading. Changing. Growing. (2005). Home Depot Investor Relations (online). Retrieved November 19, 2006 from: http://ir.homedepot.com/downloads/HD_2005_AR.pdf
Lowe's companies, Inc. SWOT Analysis. (2005). Lowe's Companies, Inc. SWOT, Datamonitor, November.
Nardelli, B., Schlosser, P. and Sellers, P. (2004). It's his Home Depot now. Fortune, 150/6, p.115.