The Home Depot: Stock or No Stock Essay

The Home Depot: Stock or No Stock Essay

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The company I have chosen to research for my final paper is Home Depot. Home Depot’s principal assets, debt and stock information as of January 30, 2001 are as follows: (amounts in millions, except stock)
Principal assets
Merchandise Inventory – 10,625
Property and Equipment - 25,060
Debt
Long-term debt – 8,707
Other long-term liabilities – 2,135
Stock – Common Stock, par value $0.05, authorized: 10 billion shared
Issued – 1.722 billion shares
Outstanding – 1.623 billion shares

Home Depot was started in 1978 as a one-stop shopping for do-it-yourselfers. As the fastest growing retailer in U.S. History, Home Depot went public on NASDAQ in 1981, and moved to the New York Stock Exchange in 1984. By 1989, Home Depot had opened its 100th store. In 1994, Home Depot moved into Canada with the acquisition of Aikenhead’s, in 2001, they moved into Mexico with the acquisition of Total Home. Home Depot acquired The Home Way in China in 2006.
Home Depot’s slogan, “More saving. More Doing.”, promotes Home Depot’s marketing strategy with more appeal for customers with less money to spend. Home Depot carries major brands but also carries Home Depot exclusives and proprietary brands which save customers money. Home Depot carries major brands like Dewalt, Hampton Bay, Homelite, and Martha Stewart Living. They also carry proprietary brands such as Ryobi, Rigid, Behr, LG and Toro.

Home Depot Inc. (NYSE: HD)
Ratio Home Depot Lowes Comments
Liquidity Home Depot and Lowe’s have very similar numbers all the way down
Current Ratio 1.33 1.40 Lowes has a slightly better current ratio
Acid-test Ratio 0.16 0.16 They both have enough current assets to satisfy current liability
Capital Structure and Solvency Both companies ...


... middle of paper ...


...for Home Depots earnings, with the numbers overall being so close Lowes would probably be a better choice for investing. But, really either company is probably not a bad investment.
After researching Home Depots financials I would invest money in Home Depot by purchasing stock. In my research there was a lot of talk about how popular home improvement is and how many people prefer the do-it-yourself aspect. While I am sure Home Depots numbers have been better, before the recession, I do not for see Home Depot going under anytime soon. I think it is a stable company that will be in business for many years to come.


Works Cited

The Home Depot. (2011). Home Depot financial information. [Data file]. Retrieved from https://corporate.homedepot.com/
Lowes. (2011). Lowes financial information. [Data file]. Retrieved from http://investor.shareholder.com/lowes/

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