To do so we will employ our learned knowledge and skills of accounting along with specific analytical tools applied to the financial statements. These will include, but are not limited to common financial ratios of: profitability, such as Return on Assets, Profit Margin, Total Asset Turnover, Return on Common Equity; asset utilization; short-term liquidity risk, such as Current Ratio and Operating Cash Flow to Current Liabilities; and long-term solvency risk such as Interest coverage.
After completion of the analysis we expect to be able to give a recommendation regarding the companies' financial conditions, such as one given to current and potential investors. .
Significant Accounting Principles.
Home Depot, Inc. and Lowe's Companies, Inc. both conform to the generally accepted accounting principles of GAAP and FASB. Home Depot's fiscal year ends on the Sunday nearest to January 31, which is can be either 52 or 53 weeks long. The year ended for this annual report consisted of 53 weeks. Lowe's fiscal year ends on the Friday nearest to January 31 and consisted of only 52 weeks for the fiscal year ended 2002. All highly liquid investments purchased with maturity of three months or less are considered to be cash equivalents and are carried at fair market value. Home Depot's cash equivalents primarily consist of commercial paper, money market funds, US government agency securities, and tax-exempt notes and bonds. Lowe's cash equivalents include cash on hand, demand deposits, and short-term investments with original maturities of three months or less when purchased. A majority of Home Depot's merchandise inventory is determined by the retail inventory method and is stated at the lower cost of inventory (FIFO) or market. Lowe's inventory is stated the same way, but uses the method of inventory accounting. .
Investments are recorded at fair value and consist primarily of high-grade debt securities and are classified as available-for-sale.
Home Depot is operating 1568 stores worldwide. ... MISSION/VALUES The Home Depot has been a destination for low-priced home improvement items with unparalleled selection for its customers. ... These values in particular cannot be lost in the bottom line of financials. ... COMPETITIVE ANALYSIS The number one competitor for The Home Depot is Lowe's Co. ... HOME DEPOT LOWE'S STRENGTHS 1. ...
Home Depot current mission- The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. ... Home Depot current objectives • To maintain Home Depot's attitude of complete customer satisfaction. ... Top Management Home Depot was started when Bernard Marcus (Chairman), Arthur Blank (President), and Ronald Brill (Chief Financial Official) were fired from Daylin, Inc. over differences of opinion on control. ... Bureau of Economic Analysis predicts that by the year 200...
Office Depot operates under the names Office Depot, Viking Office Products, Viking Direct, 4Sure.com, Computers4Sure.com, The Office Place, and Sands & McDougal. ... In 2002, Office Depot plans to add 25 to 30 new retail stores. ... Office Depot acquired Viking Office Products in 1998 to expand their direct mail business. ... During 1999, Office Depot offered low priced units and more aggressive promotional programs on computer products, which resulted in strong sales for that year and lower margin percentages. ... Office Depot realizes that its most valuable asset is its workforce. ...
., ship-to-home, in-store pick-up, etc.). ... Penney relocated to its current home in Plano, Texas in 1992. ... Key initiatives include creating a more compelling customer proposition, revitalizing its center core, increasing home store productivity and maximizing omni-channel capabilities. ... Revitalizing its center core, and increasing home store productivity are both expected to generate incremental growth opportunities. ... Promotional strategies tailored to customers and value-driven products are expected to improve Home Store productivity. ...
