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Essay / The Home Depot: Stock or No Stock - 975
The company I chose to research for my final article is Home Depot. The principal assets, liabilities and inventories of Home Depot as of January 30, 2001 are as follows: (amounts in millions, excluding stock) Principal assets Merchandise inventory – 10,625 Real estate and equipment – 25,060 Debt Long-term debt – 8,707 Other long-term liabilities – 2,135 Shares – Common stock, $0.05 par value, Authorized: 10 billion sharedIssued – 1.722 billion sharesOutstanding – 1.623 billion sharesHome Depot was launched in 1978 as one-stop shop for DIY enthusiasts. As the fastest growing retailer in U.S. history, Home Depot went public on the NASDAQ in 1981 and transferred to the New York Stock Exchange in 1984. By 1989, Home Depot had opened its 100th store. In 1994, Home Depot moved to Canada with the acquisition of Aikenhead's, in 2001 they moved to Mexico with the acquisition of Total Home. Home Depot acquired The Home Way in China in 2006. Home Depot's slogan is "More Savings." More Doing. ", promotes Home Depot's marketing strategy by making it more attractive to customers with less money to spend. Home Depot offers great brands, but also Home Depot exclusives and exclusive brands that save customers money. Home Depot carries major brands like Dewalt, Hampton Bay, Homelite and Martha Stewart Living. They also carry exclusive brands like Ryobi, Rigid, Behr, LG, and Toro. Home Depot Inc. (NYSE: HD) Home Depot Lowes Ratio Reviews Liquidity Home Depot and Lowe's have very similar numbers all the way 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 their current liabilitiesCapital structure and solvency Both companies...... middle of paper ...... for Home Depots' profits, the figures in the together being so close Lowes would probably be a better choice to invest in. But in reality, either company is probably not a bad investment. After researching Home Depot's financials, I would invest money in Home Depot by purchasing shares. During my research, there was a lot of talk about the popularity of home improvement and how many people prefer the DIY aspect. While I'm sure Home Depots' numbers were better, pre-recession, I don't see Home Depot going bankrupt anytime soon. I think this is a stable business that will be in business for many years. 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/