By Jason Williams

History Founded in 1946 Co-owned by H. Carl Buchan and James Lowe Few years later James Lowe Bought Out by Buchan Buchan eliminates wholesaler, deals directly with manufacturer, lowers prices, leads to company slogan “Everyday Low Prices”

History Continued Lowes went public in 1961 1979 first trade at the New York Stock Exchange (NYSE) Stock Symbol, “LOW”

History Continued 1982-First Billion dollar sales year Record breaking 25 Million dollar profit Lowe’s changes their target market to the, “Do-It-Yourself” (DIY) Group

History Continued Stocks 40,000 Different Items Ranked 42nd (Forbes) First Winner of the ENERGY STAR® Sustained Excellence Award in Retail

Management

Chief Executive Officer (CEO) Robert Niblock CEO Since 2005 18 Year Tenure (1993) Chairman of the Board of Directors

President and Chief Operating Officer (COO) Larry Stone President/COO since 2006 42 Year Tenure (1969) Plans to retire in June 2011

Executive Vice President and Chief Finical Officer Robert F. Hull Jr EVP/COO since 2003 12 Year Tenure (1999)

Competition (Major)

Competition (Mediocre)

Competition (Minor)

Financial Ratios

Current Ratio Current Assets/ Current Liabilities 2010-9,732,000/7,355,000=1.32 2009-9,190,000/7,560,000=1.22 2008-8,686,000/7,751,000=1.12 2010-For each dollar in current liabilities Lowe’s has, they have $1.32 in current assets. 2009- For each dollar in current liabilities Lowe’s has, they have $1.22 in 2008- For each dollar in current liabilities Lowe’s has, they have $1.12 in current assets -Home Depot Numbers: 2010-1.34 2009-1.2 2008-1.15

Quick Ratio (Current Assets-Inventories)/Current Liabilities 2010-(9,732,000-8,249,000)/7,355,000=.20 2009-(9,190,000-8,209,000)/7,560,000=.13 2008-(8,686,000-7,611,000)/7,751,000=.14 2010- For every dollar in current liabilities Lowe’s has, they have $.20 cents in current assets minus inventories 2009- For every dollar in current liabilities Lowe’s has, they have $.13 cents in 2008- For every dollar in current liabilities Lowe’s has, they have $.14 cents in -Home Depot Numbers: 2010-.36 2009-.24 2008-.23

Days Sales Outstanding (DSO) Lowes didn’t present any receivable numbers in their financial offerings; therefore this ratio can not be completed with the given data.

Total Asset Turnover (TAT) Sales/Total Assets 2010-47,220,000/33,005,000=1.43 2009-48,230,000/32,625,000=1.48 2008-48,283,000/30,869,000=1.56 2010-For every dollar in total assets, Lowes has $1.43 in total sales 2009-For every dollar in total assets, Lowes has $1.48 in total sales 2008-For every dollar in total assets, Lowes has $1.56 in total sales -Home Depot Numbers: 2010-1.65 2009-1.73 2008-1.75

Debt-to-Asset Total Debt/Total Assets 2010-13,936,000,000/33,005,000=.42 2009-14,570,000,000/32,625,000=.45 2008-14,771,000,000/30,869,000=.48 2010-Lowes finances each dollar of assets with .42 cents in total debt 2009-Lowes finances each dollar of assets with .45 cents in total debt 2008-Lowes finances each dollar of assets with .48 cents in total debt -Home Depot Numbers: 2010-.53 2009-.57 2008-.60

Times-Interest-Earned (TIE) EBIT/Interest 2010-2,825,000/0=N/A 2009-3,506,000/298,000=11.77 2008-4,750.000/239.000=19.87 2010-Lowes had no interest charges in 2010 2009-Lowes could cover any interest charges that might arise 11.77 times 2008-Lowes could cover any interest charges that might arise 19.87 times

Profit Margin Net Income/Sales 2010-1,783,000/47,220,000=.037 or 3.7% 2010- For every one dollar in sales revenue that Lowes has, they have 3.7 cents in net income 2009- For every one dollar in sales revenue that Lowes has, they have 4.5 cents 2008- For every one dollar in sales revenue that Lowes has, they have 5.8 cents -Home Depot Numbers: 2010-4% 2009-3% 2008-5.6%

Return On Assets (ROA) Net Income/Total Assets 2010-1,783,000/33,005,000=.05 or 5% 2009-2,195,000/32,625,000=.067 or 6.7% 2008-2,809,000/30,869,000=.09 or 9% 2010-For every dollar invested in total assets, Lowes has 5 cents in net Income 2009-For every dollar invested in total assets, Lowes has 6.7 cents in net income 2008-For every dollar invested in total assets, Lowes has 9 cents in net income -Home Depot Numbers: 2010-6.5% 2009-5.5% 2008-9.9%

Return On Equity (ROE) Net Income/Common Equity 2010-1,783,000/19,069,000=.09 or 9% 2009-2,195,000/18,055,000=.12 or 12% 2008-2,809,000/16,098,000=.17 or 17% 2010-For every one dollar in stockholder’s equity Lowes has, they have 9 cents in net income 2009-For every one dollar in stockholder’s equity Lowes has, they have 12 2008-For every one dollar in stockholder’s equity Lowes has, they have 17 -Home Depot Numbers: 2010-13.7% 2009-12.7% 2008-24.8%

Book Value Per Share (BVPS) Common Equity/Shares Outstanding 2010-19,069,000,000/1,459,000,000=13.07 2009-18,055,000,000/1,470,000,000=12.28 2008-16,098,000,000/1,458,000,000=11.04 -Home Depot Numbers: 2010-11.42 2009-10.48 2008-10.48

Horizontal Analysis