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Executive Summary Of Lowe's

676 Words3 Pages

Lowe’s has the distinct recognition of being the world’s second largest home improvement company that was founded in 1952, operating 2,129 free standing stores, employing 190,000 full-time, and 100,000 part-time employees collectively in the U.S, Mexico and Canada. Last year, this impressive organization had a larger increase in sales of 10.1%, producing 65 billion in sales, as compared to the industry giant Home Depot who also increased sales by 6.9%, producing 94.6 billion in annual sales. Albeit, Lowe’s short-term liquidity current and quick ratio was very low as of February 2017, reflecting 1.0 and .1, with high long-term solvency debt/equity ratio of 244% (S & P, 2017). These, numbers are not alarming due to Lowe’s strategically …show more content…

In addition to the acquisition of the RONA stores, Lowe’s continues expand their omni-channel reach by providing in home service partnering with customers to fulfill home improvement, planning and designing projects. Moreover, Lowe’s fixation is to continue to deliver increase revenues, increase productivity with a 21.3% increase in diluted earnings per share as of February 2017, increase of 175 points on return on investment capital, reaching 15.83%, and increase EBIT margin from 8.6% to 9.4% in 2016. Industry projections continues to be optimistic for the home improvement industry as statistics reflects a 5.1% increase in housing turnover in 2016 and will continue through 2017, creating opportunity for increase business as home improvement, repairs and upgrades precipitate the purchase of goods and services (Lowe’s, …show more content…

Research, indicates that positive relationships exists with the stakeholder and the organization when organizations practice corporate social responsibility (Becchetti, Solferino, & Tessitore, 2016). Thus, Lowe’s takes this responsibility seriously as they have created a Sustainability & Product Stewardship Council headed by senior management that makes recommendations for sustainability across the organization as well as incorporating measures to track their carbon footprint and installing LED lighting in all store locations to conserve

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