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Home depot versus lowes analysis
Home depot and lowe's comparison
Home depot versus lowes analysis
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More handpicked essays just for you.
Home depot versus lowes analysis
Home depot and lowe's comparison
Home depot versus lowes analysis
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Business Description: Lowe’s companies, Inc. established 72 years ago at the year of 1921, Its a home improvement retailer, functions through the United States for building materials and supplies. Headquartered in North Wilkesboro, North Carolina, serves more than 17 million customers a week from all stores. Currently, Lowe’s operates in 1,820 stores within the United States and 310 stores internationally in Canada and Mexico. Lowe’s is known as the second largest US home appliances retailer after Sears.
“ With the promising look of Kohl’s future of new outlet stores and on many other calculations I have indicated that Kohl’s has proved be more profitable, solvent and liquid than JCPenney. Kohl’s net profit margin puts them ahead of JCPenney by a landslide, although their gross profit percentage is relatively close, Kohl’s leading with 36.13% to compared to JCPenneys 36.05%. Meaning that Kohl’s makes .08% more money from selling their good/services with subtracting the cost it takes to produce the good/service. A high gross profit often
Part B: Business Strategy Mission/vision statement - Our mission is to provide impactful support to local communities. We've stepped up our efforts to help families and communities manage through challenging economic times. Interpretation of Mission/Vision Statement – Lowes’ mission is to provide Home improvement products to customers at great affordable prices, while helping the communities as well. SWOT Analysis: Strengths: - Great products and organization - Lowe’s has organized departments that cater to customer’s needs.
Dick’s Sporting Goods is a very profitable company that has been around on the market more than 60 years. They are a company that is well above what is always projected and expected. The following they have from customers is one of the highest in the sporting goods industry. The fortune 500 company is so profitable due to the many locations, the plethora of inventory, and the helpful and courteous staff they hire. When looking at the income statement of the company I notice right off the bat that the company has improved its net sales year after year since 2009.
This information is important to have, because if the company had to borrow money, how much it cost to produce the products, and how much the operating expenses are. The income statement is to help determine if the company is making or losing money (Bethel University, 2011). Statement of Stockholders’ equity is to show the last year of retained earnings, it shows the net income from the income statement for the year, it has the dividends during the whole period of the year, and it has the ending retained earnings. This statement is used to help the company keep track of any changes in the stockholders’ equity. It also shows the relationships between the balance sheet, income statement, and the stockholders’ equity (Bethel University, 2011).
The Home Depot’s last reported earnings were $5.46/share. This number is very attractive to investors as it shows that the company is highly profitable. There price/earning ratio sits somewhere around industry average at 22.10. Investors are confident enough in future growth that they
Sales in the past few years have been on the decline as many homeowners faced foreclosure. During 2006, existing home sales dropped by more than 8 percent, representing the worst decline in 17 years. In the fourth quarter— during which the housing market was hit the hardest—Lowe’s experienced an 11.5 percent drop in year-by-year profits. During this same period the Company’s revenue fell by 3.7 percent, and same-store sales—a key metric for determining performance—declined by 5.3 percent. The US Census Bureau reported total construction spending in the US of $842.1 billion in June 2012 compared to $1,149.4 billion in June
The net income amount that is shown on three statements show $80,322 in the thousands. The three statements are operation statement, income statement, and the cash flow statement. Per all three statements the net income has decreased in the thousands over the last three fiscal years (Bethel University,
a) Accounting policies and comparison with international accounting standards: Net sales, cost of sales, gross margin, expense, operating income, interest income, taxes, cash, assets, long-term and short-term liabilities, Properties, common stock dividends, total shareholder’s equity are all the accounting policies. All of those and other financial data be used in preparing the Macy’s financial reports. In the section of the common stock. The company’s Board of Directors has the discretion of the declaration and payment of future dividends.
Annual Reports and Press releases The annual reports and press releases of both companies slightly differ though with a portion of similarity. Although, Home Depot’s annual report is composed at the headquarters of giving an inclusive report on all of the retail stores in the world, through the company’s website these reports posted can be found. Therefore, this being impartial and all-inclusive to an extent of analysis it would have to be done on the contrasts, similarities, profitability, and performance of different retail stores in different regions or countries. However, the shareholders and customers analyze the summary provided to know the general performance.
Some of them include B of A ML, Barclays Capital, Deutsche BK SEC, Jeffery & Co, Baird R W, etc. Currently the trading volume is $4,210,775 (Lowe 's Companies, Inc. (LOW) Stock Chart). Lowe’s is very socially responsible. According to Robert A. Niblock, it means that they are accountable to customers, to their people, and to their communities they serve. He also states that it means that they aim high to do what is right, to find a solution that works for all of them, and to strive to be trustworthy.
Companies all over the globe will experience some sales and profit decrease. Home Depot in the growing housing industry benefited greatly from the houses being built. The accounting concept portrayed in this situation for home depot is called operating leverage. Operation leverage is when managers view a small change in revenue and magnify it to dramatic changes in revenue (Edmonds, Tsay, & Olds, 2011). With a decrease in the market for construction materials, Home Depot is experiencing a 3% decrease revenue and a 21% decrease in profitability.
In this case study I will be discussing the financial state of Lowes. In class we have learned a lot about the different things that can impact a business and ultimately have an impact on the shareholders and the stockholders. Some of those things include how the company does financially at the end of the year. For example if at the end of the year if a business does well they can choose to spend the cash they have at the end of the year in different ways. They can choose to use the money to expand their company.
Two major companies in the home improvement industry when thinking of branding are The Home Depot, and Lowe’s they are the clear market leaders in the home improvement industry today. Both can succeed, because they have set different images that appeal to different consumer segments namely male and female, and it starts with store layout of both their brick and mortar locations and their online stores. The Home Depot’s design is more tailored to appeal to customers such as contractors and skilled .laborers. The Home Depot has more of a rough layout that calls for these workers. While they’ve tried to soften this image lately with more staff female and better accessibility to items, the store still has its maleness appeal.
Walmart stores is one of the largest retailers not only in the United States but across the world. They hold tremendous power from a retail level and on a political level with governments in the US and outside. Ratios help create Walmart as a company and allows investors to be able to gauge and understand the metrics of the organization. These metrics and ratios help investors understand the specific direction of the company and the effectiveness of executive leadership. The primary ratio that must be understood regarding Walmart's earnings-per-share is the price earnings ratio.