Debt to Equity: Total Debt Total Equity

Home Depot 2012 1.31 2011 1.26 2010 1.12 2012 1.35 Lowes 2011 1.03 2010 .86

Asset Turnover: Sales Revenue Total Assets

Home Depot Lowes
2012 1.49 2011 1.46 2010 1.44 2011 1.74 2010 1.69

2012 1.83

Return on Equity:

Net Income

Stockholders Equity
Home Depot 2012 .26 2011 .22 2010 .18 2012 .14 Lowes 2011 .11 2010 .11

Return on Assets: Net Income Total Assets

Home Depot Lowes 2010 .08 2012 .06 2011 .05 2010 .06 2011 .09

2012 .11

Cash Ratio: Cash Equivalent + Cash Current Liabilities

Home Depot 2012 .22 2011 .21 2010 .05 2012 .09 Lowes 2011 .16 2010 .16

Debt Ratio: Total Liabilities Total Assets

Home Depot 2012 2011 2010 2012 .56 Lowes 2011 .51 2010 .46

.57

.56

.53

Dividend Payout: Yearly Dividends Per Share Earnings Per Share

Home Depot Lowes
2012 .38 2011 .37 2010 .3

2012 .41

2011 .42

2010 .47

Inventory Turnover:

Net Sales Merchandise Inventory Net

Lowes 2011 2010 6.82 6.4

Home Depot 2012 2011 2010 2012 5.87

6.97

6.82

6.4

Assets (In millions) Current Assets Cash + Cash Equivalents Receivables, Net Merchandise Inventory Other Current Assets Total Current Assets Net Property Equipment Notes Receivable Goodwill Other Assets Total Assets

Feb. 2013

% Total

Jan. 2012

% Total

Jan. 2011

% Total

$2,494 $1,395 $10,710 $773 $15,372 $24,069 $140 $1,170 $333 $41,084

6.1 % 3.4 % 26.1 % 1.9 % 37.4 % 58.6 % .3 % 2.9 % .8% 100 %

$1,987 $1,245 $10,325 $963 $14,520 $24,448 $135 $1,120 $295 $40,518

4.9 % 3.1 % 25.5 % 2.4 % 35.9 % 60.3 % .3 % 2.8 % .73 % 100 %

$545 $1,085 $10,625 $1,224 13,479 $25,060 $139 $1,187 $260 $40,125

1.4 % 2.7 % 26.5 % 3.1 % 33.7 % 62.5 % .35 % 3% .65 % 100 %

Liabilities (In millions) Current Liabilities Accounts Payable Accrued Salaries and Related Expenses Sales Tax Payable Deferred Revenue Income Taxes Payable Current Installment of Long-term Debt Other Accrued Expenses Total Current Liabilities Long-term Debt Current Installments Other Long-term Liabilities Deferred Income Taxes

Feb. 2013

% Total

Jan. 2012

% Total

Feb. 2011

% Total

$5,376 $1,414 $472 $1,270 $22 $1,321 $1,587 $11,462 $9,475 $2,051 $319

23% 6% 2% 5.4% .09% 5.7% 6.8% 49.2% 40.1% 8.8% 1.4%

$4,856 $1,372 $391 $1,147 $23 $30 $1,557 $9,376 $10,758 $2,146 $340

21.5 % 6.1 % 1.7 % 5.1 % .1 % .13 % 6.9 % 41.5 % 47.6 % 9.5 % 1.5 %

$4,717 $1,290 $368 $1,177 $13 $1,043 $1,515 $10,122 $8,707 $2,135 $272

22.2 % 6.1 % 1.7 % 5.5 % .06 % 4.9 % 7.1 % 47.7 % 41 % 10 % 1.3 %

Total Liabilities

$23,307

100%

$22,620

100 %

$21,236

100 %

Assets (In millions) Current Assets Cash + Cash Equivalents Short-Term Investments Merchandise Inventory-Net Other Current Assets

Feb. 2013

% Total

Feb. 2012

% Total

Jan. 2011

% Total

$541 $125 $8,600 $301

1.7% .4% 26.3% .9%

$1,014 $286 $8,355 $234

3.0 % 0.9 % 24.9 % 0.7 %

$652 $471 $8,321 $330

1.9 % 1.4 % 24.7 % 1.0 %

Total Current Assets

Property Less Accumulated Dep. Long-term Investments Other Assets Total Assets

$9,784
$21,477 $271 $1,134 $32,666

30%
65.7 .8% 3.5% 100%

$10,072
$21,970 $504 $1,013 $33,559

30.0 %
65.5 % 1.5 % 3.0 % 100 %

$9,967
$22,089 $1,008 $635 $33,699

29.6 %
65.5 % 3.0 % 1.9 % 100 %

Liabilities (In millions)

Current Liabilities Current Maturities of Long-Term Debt Accounts Payable $47 $4,657 .2% 24.8%

Feb. 2012

% Total

Jan. 2011

% Total

$592 $4,352

3.5 % 25.6 %

$36 $4,351

.2% 27.9 %

Accrued Compensation
Deferred Revenue Other Current Liabilities

$670
$824 $1,510

3.6%
4.4% 8%

$613
$801 $1,533

3.6%
4.7 % 9%

$667
$707 $1,358

4.3%
4.5 % 8.7 %

Total Current Liabilities

$7,708

41%

$7,891

46.3 %

$7,119

45.7 %

Long-Term Debt

$9,030

48%

$7,035

41.3 %

$6,537

41.9%

Deferred Income Taxes-net Deferred Revenue-extended projection plans Other Liabilities Total Liabilities

$455 $715 $901 $18,809

2.4% 3.8% 4.8% 100%

$531 $704 $865 $17,026

3.1% 4.1% 5.1 % 100 %

$467 $631 $833 $15,587

3% 4% 5.3 % 100%

Home Depot:
A rise in total assets over the years Great reputation among customers Big competitor for similar stores Strong marketing and advertising strategies

Lowes:
Opening new stores overseas Has a strong supply chain Strong online and mobile presence with customers Primary focus on residential customers Handled the housing bubble of 2008 with minor losses

Home Depot:
Growing debt Low rate of store expansion Decline of stockholders equity since 2010

Lowes
Does not serve many commercial customers Has recently switched its pricing strategy from promotions and deals to everyday low prices

Home Depot:

Opening up new locations Rising demand of Home Depot products because of construction in new places Increase in population Decrease in prices

Lowes:

Growing reputation Technological innovation Further room to expand internationally Online shopping Concentration on female customers

Home Depot:
Local businesses gaining more popularity Competitors moving closer to Home Depot locations Lack of business in certain locations Change in customer loyalty Rise in taxes and prices

Lowes:
U.S. economic crisis Home Depots international expansion Home Depots stake as the first holder of market share Home ownership is in decline

 After looking through all of Home Depot and Lowes statements we have an idea of how both companies are doing financially. They are the top two leading companies that are competing in the same market. In particular, we have seen Home Depot has been around longer, has more stores and has a much greater share of the market. It is also a more recognized store with more loyal customers who come back continuously. HD number have been gradually increasing each year. On the other side , Lowes is an up and coming company who was growing at an alarming rate until recently. Lowes numbers show a much less increase than before. They are still sitting at second place only behind Home Depot. Home Depot has also been recently increasing its current empire at a greater rate compared to Lowes. Even though Lowes has surpassed many companies, recent reports show they have been losing momentum while HD has not. We believe HD is on top for a reason and will remain on top for the coming years.