Home Depot Financial Analysis Essay

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Final Financial Analysis of The Home Depot and Lowes Ayesha Muhammad Columbia College The companies I picked for the assignment of financial statement analysis are, The Home Depot and Lowes. I will conduct an in dept analysis on both companies by looking into their history, comparing their strengths and weakness in their industry and compiling information about their current financial situation as it relates budgeting and investment. With this information, I will then give a recommendation into which company I would invest with good reason. Both the Home depot and Lowes are major competitors in the DIY, otherwise known as Do-It- Yourself, home improvement market. Both the home depot and Lowes carry merchandise for home, garden, lawn, landscaping, and many other merchandising projects detailed for remodeling and repair. In looking at the history of these two companies, I found they both started on similar visions and now are essentially dominating the home improvement industry. Whereas the Home Depot started very early to identity itself to the DIY consumer, market forces pushed Lowes to find new markets to survive. Both companies have similar strengths, but Lowes weaknesses and inability to outperform The Home Depot puts the latter farther ahead of…show more content…
Lowes had to expand their brand image somewhat because of the large market share of the DIY market that the Home Depot held and the stagnation of the housing market in the 80s. The Home Depot seems to have a more recognizable brand in regards to their target market segment because of the consistency of their image. Because of this more recognizable brand and large market share it can be concluded that The Home Depot has a larger stronghold on the market and provides more goodwill for its investors than

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