...Report Analysis On Home Depot, Inc. DeVry University Intermediate Accounting Introduction Home Depot, Inc., founded in 1978 by Bernie Marcus and Arthur Blank, decided to team up with investment banker Ken Langone and merchandising guru Pat Farah ultimately became the visionaries for the one-stop-shop do-it-yourself store which today has become a very lucrative business bring the vision to fruition. The Home Depot is the world’s largest home improvement retailer based upon reported $4.5billion in net sales for the fiscal year 2012. Home Depot has more than 2,200 locations throughout the United States and now has expanded across the globe with stores located in territories of the U.S. Virgin Island, Guam, Canada, Puerto Rico, Mexico and reaching as far as China. Stores averaging 105,000 square feet with approximately 23,000 additional square feet outside garden area; inventory consist up to 40,000 different kinds of building materials, home improvement supplies and equipment to also include appliances along with lawn and garden products and equipment for just about every imaginable project need. Home Depot offers competitive prices with a guarantee they can beat anyone’s advertised specials. Among other offers, Home Depot offers home services such as contractor services, home services, free “how-to-clinics” and a free children’s “how-to-clinic” offering ideas that can range from simple to complex ideas. Report I Reporting and Auditors Financial statements...
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...The Home Depot, Inc. ACC/497 The Home Depot, Inc. Management, board of directors, and potential investors gain crucial information on the status of a company by reviewing and analyzing the different financial statements. A financial statement allows users a peek into its financial well-being in order to make informed decisions in relation to that company. One of the most common financial statements is the income statement and is frequently referred to as the profit and loss statement. Following the financial statement and/or profit and loss statement is the balance sheet and cash flow statement. Both are equally as useful when making decisions and gaining insight on a company. The following analysis has been put together using the income statement and/or profit and loss statement, balance sheet, and cash flow statement for The Home Depot’s Inc 2008 fiscal year. The Consolidated Statement of Earnings gives users insight into the company’s expenses and earnings incurred during a specific fiscal year. After reviewing The Home Depot’s income statement for the 2008 fiscal year, it displays a company with strong sales numbers of $71 billion for the year. While $71 billion in sales seems impressive, The Home Depot Inc. actually had a $6 billion dollar decrease in sales from the previous year. The Home Depot Inc. attributed this considerable decline in sales to the struggling U.S. residential construction and home improvement market. Along with their drop...
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...Financial Statements Part 1 Accounting 497 Financial Statements Part 1 Financial statements provide investors, creditors, and employees with important information related to a company’s overall performance. Public traded companies are required by the Securities and Exchange Commission to release financial statements on quarterly and annual basis. The three main statements included in the annual report include the consolidated statement of earnings, balance sheet, and statement of cash flows. This paper will analyze Home Depot, Inc. 2008 annual report. The Home Depot, Inc. The Home Depot is a public “do-it yourself” home improvement and construction retailer. The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank (depot, 2015). The company’s website states that “today The Home Depot is the world’s largest home improvement specialty retailer, with more than 2,200 retail store in the United States (including Puerto Rico and the U.S. Virgin Islands), Canada, and Mexico” (depot, 2015). The Consolidated Statements of Earnings The consolidated statement of earnings or commonly known as the income statement is a financial statement that measures a company’s financial position over a specific accounting period. The statement includes: revenues, expenses, gains and losses. The fundamental equation used to generate the income statement is Revenues-Expenses=Profit or Loss. A consolidated statement of earnings combines all major expense accounts into broad categories...
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...Conclusion 5 Appendix A – Vertical Analysis 6 Appendix B – Horizontal Analysis 7 Appendix C – Ratio Analysis 8 Appendix D – Strengths and Weaknesses 9 Appendix E – Miscellaneous 10 Footnotes 11 Corporate History The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. In the late 1970s, they were both officers in a Southern California home-center chain called Handy Dan when turnaround artist Sanford S. Sigoloff took over Handy Dan's ailing parent company, Daylin Inc. The corporate raider was notorious for gutting senior management, but as Marcus writes in the duo's autobiography, Built From Scratch, "Handy Dan made so much money that we thought Sigoloff would be stupid to get rid of us." They thought wrong. In 1978, citing trumped up charges that they had allowed an underling to create a fund improperly used to fight a union at Handy Dan stores in San Jose, California, Sigoloff did fire Marcus and Blank. The Home Depot is a do-it-yourself, home improvement store based on excellent customer service, low prices, and a wide selection of products. The company is headquartered in Atlanta, GA, where the business began with two stores. From the start, associates offered the best customer service in the industry by guiding customers through projects such as laying tile, changing a fill valve, or handling a power tool. Store associates undergo rigorous product knowledge training. The Home Depot revolutionized the home improvement industry by providing know-how...
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...Accounting/Financial Analysis Of Lowe's Inc. Lowe’s is the world’s second largest home improvement retailer and operated 952 stores in forty five states at their fiscal year ending January 30, 2004. The company is currently in the midst of the most aggressive expansion in its history with 130 new stores opened in 2003 and another 140 slated for this year. Lowe’s saw 2003 sales reach approximately $30.8 billion, due largely to their focus on the retail customers and home-improvement projects. Fifty eight years ago Lowe’s began as North Wilkesboro Hardware Company, a neighborhood hardware store fittingly named after the small town it was located in. Owned by partners H. Carl Buchan and James Lowe, this concept was more than a living, it was a vision of creating a chain of hardware stores. The concept was easy and straight forward. Lowe’s concentrated on selling only hardware, appliances and hard-to-find building materials while eliminating wholesalers and dealing directly with manufacturers to establish a reputation of offering the lowest prices. The company went public in 1961 and began trading on the New York Stock Exchange in 1979 (NYSE:LOW). In 1982, Lowe’s had its first billion-dollar sales year, earning a record profit of $25 million, establishing them as an industry force. Lowe’s has posted extremely strong numbers in the past few years and the company has grown rapidly, swelling it’s store base from 500 to over 950. Sales have increased an average of 20% per year...
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...CONFORMING LETTER Home Depot Inc. Dear Home Depot Inc. Management, As a partner of KNAM LLC, it is my pleasure to present you with the results of our initial review. Included with these results is our assessment of Home Depot Inc.’s performance is our proposition of areas we’d like to review further to determine improvements, efficiency, functionality, and health of your organization. Background Your organization’s core service is in the DIY home improvement market. You sell goods that consumers need for home improvement as well as advice on said projects, contracting services, lawn and garden, and appliances and tools. Your organization was founded in 1978 with the purpose of providing DIY one-stop shopping. Since inception, Home Depot Inc. has grown to become a multinational company with foundations strongly in the United States with roots in the Canadian, Mexican, and Chinese markets. Shortly after inception, Home Depot Inc. enlisted on NASDAQ and the NYSE. Your company has seen considerable growth in its main business as well as developments in subsidiary businesses and services. Home Depot Inc. has become one of the fastest growing retailers in America and as such, you would like to review the operations of your organization to determine areas of further growth and areas that may need to be leaner. Objectives of the Operational Review As a result of our initial review and interviews with your executive management...
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...A Strategic Analysis of Home Depot GM599 A Strategic Analysis of Home Depot Introduction The Home Depot (NYSE: HD) is a home improvement, construction products and services retailer operating over 2,000 big-box stores in the United States and abroad. The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank with the vision of one-stop shopping for do-it-yourself (DIY) customers, installation services for do-it-for-me (DIFM) customers and competitive products for the professional market. Their DIFM installation programs include products such as carpeting, flooring, cabinets, countertops, and water heaters. In addition, the company provides installation of various professional products like generators and HVAC systems. The Home Depot developed strategic product alliances directly with industry-leading manufacturers to deliver the most exclusive assortments to customers. Through a combination of national brands and proprietary products The Home Depot exclusively carries several major brands, including: BEHR Paint, G.E., Martha Stewart Living and Thomasville, which sets the standard for the do-it-yourselfer and the professional contractor. The Home Depot revolutionized the home improvement industry by bringing the know-how and the tools to the consumer and by saving them money. According to the founders, the customer has a bill of rights at The Home Depot, and this entitles the customer to the right assortment, quantities and price, along with trained associates...
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...Company Overview Home Depot, Inc. (Home Depot) was, for the 2008 fiscal year ending in February 2009, the world’s largest home improvement retailer. It is known for its warehouse-style stores offering a wide range of building materials, appliances, and lawn and garden products. Home Depot serves three primary customer groups: Do-It-Yourself (DIY), Do-It-For-Me (DIFM), and Professionals, each of whom have different inventory and customer service needs. As of February, 2009, Home Depot had 1,971 stores in the U.S., including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam; 176 stores in Canada; 74 stores in Mexico and 12 stores in China. (Home Depot 2008 Annual Report, 2009). The Home Depot, like many large corporate entities, has found purpose in creating a mission statement to drive its future operations. The Home Depot website outlines the Company Mission Statement as follows: “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. We are a values-driven company and our eight core values include the following: 1. Excellent customer service 2. Taking care of our people 3. Giving back 4. Doing the “right” thing 5. Creating shareholder value 6. Respect for all people 7. Entrepreneurial spirit (and) 8. Building strong relationships” Fiscal 2008 was a challenging year for the United States economy, and was particularly...
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...Financial Statements Part Two Home Depot is a retailer that operates in the home improvement industry. The company sells building materials and home improvement products. Part Two of the Financial Statements paper will assess the financial statements of Home Depot to ascertain how effective the company’s management is in achieving its goals and mission statement to the stakeholder’s. The analysis will use vertical analysis, trend analysis, and ratio analysis to achieve to support the findings. A vertical analysis is a report that reports each amount on a financial statement as a percentage of another item. In performing the vertical analysis we need to look at the economic conditions of 2008. Mortgages started failing in the early months of 2008. Several guarantee’s of mortgage loans were placed under governmental conservatorship including Fannie Mae and Freddie Mac, which resulted in the U.S. Treasury Department supplying funds to help stabilize these companies, raising the national debt ceiling in the process (Money-Zine.com, 2011.) As a retail supplier of home improvement and home building materials, Home Depot was hit hard by the economic condition resulting in the company’s retail sales declining by 7.8 percent and its adjusted earnings per share declining by 22 percent in 2008. In the 2008 Home Depot Annual report, the company Chairman and the Chief Executive Officer, Francis S. Blake, advised that he viewed this year as not being a very ordinary year, with...
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...Home Depot vs. Lowe’s Retail Home Improvement Financial Analysis Background Introduction The home improvement sector of the economy is large with two major players in the industry and with many smaller local and regional competitors. These two major competitors are Home Depot and Lowe’s. These two companies account for over $110 billion in total sales each year. Even though sales have gone down over the past few years due to the downturn in the economy they have not gone down nearly as much as home sales and this is due to more people deciding to do more home improvements to their own home then buying a new home. Both of these companies have been able to keep up sales and increase them year over year by improving current stores and at the same time expanding both here in the United States and overseas. Company introduction Home Depot The Home Depot also known as Home Depot is a retailer of home improvement and construction products and services. The Home Depot was founded in 1978. The Home Depot operates 2,242 stores across the United States in all 50 U.S. states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam. Sales within the United States were over $77 billion in 2010. The Home Depot also operates internationally in Canada, Mexico and China. Lowe’s Lowe's Companies, Inc. is a retail home improvement and appliance stores and also does construction. Lowe’s was founded in 1946 in North Wilkesboro, North Carolina. Lowe’s operates 1,710 stores...
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...Lowe’s Home Improvement Stores Sheila Thomas Webster University Abstract Lowe’s exists to help customers improve and maintain their biggest asset- their home. We do this by meeting the changing needs of our customers by providing inspiration and support whenever and wherever they shop. Whether our customers shop in store, online, by phone, or if we’re meeting them at their home or place of business, Lowe’s is ready to help. In our more than 1,830 stores, we have implemented multiple systems to improve the customer experience, including an upgraded store information technology infrastructure that allows customers and employees to access richer product information, enjoy an endless aisle of product choices and manage their projects from inspiration to enjoyment (Lowe’s.com). Online, we are rapidly expanding our assortments to offer customers a broader range of products that can be researched and purchased online, in store or via our mobile app. MyLowe’s makes it easy for our customers to automatically track and store all purchases on their online customer profile. We’ve vowed to “Never Stop Improving” so we can satisfy the ever-changing needs of our customers (Lowe’s.com). Lowe’s operates more than 1,830 stores in the United States, Canada and Mexico. We serve approximately 15 million customers each week and employ more than 260,000 people (Lowe’s.com). Our stores stock 12 product categories ranging from appliances and tools, to paint, lumber and nursery...
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...Primary Competitor Analysis Competitor Name: The Home Depot, Inc Headquarters: Atlanta (Cobb County), Georgia Locations: 2,200 Retail Stores in U.S., Canada, and Mexico Annual Revenue: 2013-$74,754,000,000 2014-$78,812,000,000 2015-$83,176,000,000 Slogan/Motto: “More saving. More doing.” Primary Products: -Building Materials (40,000 different kinds) -Tools/Hardware -Appliances (kitchen/bath/décor) -Lawn and Garden Products -Electrical, Plumbing, Flooring, & Heating/Cooling Supplies Primary Services: -Home Depot Home Services (national installation service with pre-screened independent contractors) -Free How-To Clinics -Kids Workshops Primary Target Market: The Home Depot’s primary target markets are the do-it-yourself customer, the do-it-for-me customer, and professionals. This mainly includes Generation Y white, Hispanic, and black males, across the United States with pretty much any education level. Distribution Strategy: Network of distribution centers for store replenishment and ...
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...Strategic Audit of Lowe’s Companies, Inc. | Explore Page 1 of 70 Home Blog Contact Site Map Explore Learn. Live. Share. http://www.jacobcamp.com/2011/05/29/strategic-audit-of-lowes-companies-inc/ 5/25/2012 Strategic Audit of Lowe’s Companies, Inc. | Explore Page 2 of 70 Strategic Audit of Lowe’s Companies, I May 29, 2011 | Business Development,ERP,General Business Home » Blog » General Business » Business Development » Strategic Audit of Lowe’s Companies, In Click for PDF: Lowe’s U.S. Strategic Audit Spring 2011 Lowe’s Company, Incorporated is a home improvement retailer that has stores throughout the Unit following report is a student strategic audit for Mike Anderson’s strategic management course at th undergraduate student project team was composed of the following people: Keelie Cox, Alicia Kelly Wu, and myself (Jacob Camp) I. Executive Summary This report critically overviews the U.S. Division of Lowe’s Company, Incorporated. The purpose of accurate and current representation of Lowe’s through research using a variety of sources, method statements, recommendations, or opinions offered herein are only perspectives from the respective state that these aforementioned statements will come to fruition. The current operations, performance, and policies of Lowe’s will most certainly lead the company t the fortunate position to avert disaster. A note of exceptionally good news is that Lowe’s was evalu with a probability...
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...THE HOME DEPOT, INC. Introduction 1. Identify the company’s mission, vision, and primary stake holders. 2. Identify the five forces of competition and how it impacts the company. 3. Create a SWOT analysis for the company identifying the major strengths, weakness, opportunities and threats. 4. Based on the SWOT analysis, recommend how the company may capitalize on its strengths and opportunities, and minimize its weaknesses and threats. 5. Discuss the various levels and types of strategies the firm may use to maximize its competitiveness and profitability. 6. Determine the recent corporate governance issues that are currently affecting the company’s decisions and report how the company is or should be handling the issues. 7. Use 4-5 external sources as part of your assignment. Introduction Home Depot, Inc. is the world’s largest home improvement retailer with 2,246 retail stores in all 50 states in United States, the District of Columbia, Puerto Rico, Virgin Islands, Guam, 10 Canadian provinces, Mexico, and lastly China. HD (Home Depot) provides employment to approximately 321,000 full time employees. HD stock is traded on the New York Stock Exchange (NYSE:HD), is included in the Dow Jones industrial average and Standard & Poor’s 500 index. This company sales a range of building materials, home improvement and lawn and garden. (Poor's, 2011) Home Depot was found by Bernie Marcus and Arthur Blank, on June 29, 1978. Their vision was to create and...
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...Home Depot, Inc Financial Statements Cari Tenan ACC/497 October 1, 2012 Teresa Jenkinson Home Depot, Inc Financial Statements In 1978 Home Depot, Incorporated was incorporated. Home Depot, Incorporated is the world’s largest home improvement retailer selling an assortment of building materials, home improvement, lawn and garden products plus numerous services. In 2008, Home Depot, Incorporated had 2,233 stores throughout the United States, Puerto Rico, the United States Virgin Islands, Guam, Canada, China, and Mexico plus a website on the Internet. The fiscal year for 2008 ended on February 1, 2009, and the financial statements give an individual an idea of how the corporation did during that fiscal year compared to the previous fiscal year (Phillips, Libby, Libby, 2011). Looking at the three major financial statements the consolidated statement of earnings or the income statement, balance sheet, and the cash flow statement, helps an individual to understand how well or not a company did during the year. An individual can even compare the financial statements with previous years to see where improvements may be needed. The consolidated statement of earnings shows the profitability of a company. The balance sheet shows the financial position of a company. The cash flow statement shows where the cash came from and what the cash was used for during a period. The consolidated statement of earnings for Home Depot Incorporated during the fiscal year 2008 shows revenue...
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