Value Line Publishing Essays

1719 Words Oct 29th, 2011 7 Pages
| Value Line Publishing | | Yu ZhangAlex Zurbuch | Mingle Li | |

Fin 470
Oct 16, 2011

Value Line Publishing

There are two leaders for retail building-supply industry: Home Depot and Lowe’s, the two companies captured more than third of the total sale of the industry. Home Depot hold 22.9% market shares of the industry and Lowe’s hold 10.8% market share. Two companies are head to head competitor but focus on different market, Home Depot focused on large metropolitan areas and Lowe’s focused on rural area. Two companies both maintained online stores. Lowe’s has its own Web site: “Accent & Style” and focused on professional customer. Home Depot developed new type of retail stores in urban area and provide products
…show more content…
Operating margin show that Home Depot got better return on sales than Lowe’s.
The higher working capital turnover is better because it means that the company is generating a lot of sales and the higher efficient utilization of assets. Home Depot has stronger sales than Lowe’s. The inventory turnover measures how quickly you are moving inventory through your warehouse. The Sales numbers of Home Depot are stronger than Lowe’s, but Lowe’s sales increased rapidly, | | Comparison Sales per store($ million) | | | | 1997 | 1998 | 1999 | 2000 | 2001 | Home Depot | 38.7 | 39.7 | 41.3 | 40.3 | 40.2 | Lowe's | | 21.3 | 23.5 | 27.6 | 28.9 | 29.7 | Home Depot/Lowe's | 182% | 169% | 150% | 139% | 135% | Comparison sales per store of Lowe are increased much faster than Home Depot and predict average growth rate, comparison sales per store of Lowe will exceed Home Depot base on the current development situation. | | Comparison Sales per transaction ($) | | | | 1997 | 1998 | 1999 | 2000 | 2001 | Home Depot | 43.9 | 45.4 | 48.2 | 48.8 | 49.1 | Lowe's | | 43.9 | 45.7 | 53.2 | 54.9 | 56 | Home Depot/Lowe's | 100% | 99% | 91% | 89% | 88% | Comparison sales per transaction of Lowe’s are larger than Home Depot, the increasing speed for comparison sales per transaction of Lowe’s is much faster than Home Depot and continued year by year. Comparing

Related Documents