The Home DepotFinancial Analysis

The History

• June 22, 1979

• Bernie Marcus & Arthur Blake

• “Whatever it takes” philosophy

• Customer’s Bill of Rights/Pyramid

• 1981 – NASDAQ

• 1984 – NYSE

• Aikenheads (CAN) 1994

• Total Home (MEX) 2001

• Home Way (CHI) 2006

In a Glimpse

Fiscal Year 2014

• Earnings Per Share $4.71

• Net Sales $83,176MM

• Operating Margin 12.6%

• Return on Invested Capital 24.9%

Comparison

Home Depot• P-E Ratio 20.66

• Earnings Per Share $4.71

• Current Ratio 1.42

• Quick 0.39

• Inventory Turnover 4.72

Lowe’s Home Improvement• P-E Ratio 21.23

• Earnings Per Share $2.71

• Current Ratio 1.08

• Quick 0.06

• Inventory Turnover 4.07

Invest? Yes!