1. By Jason Williams

2. 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”

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

4. 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

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

6. Management

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

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

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

10. Competition (Major)

11. Competition (Mediocre)

12. Competition (Minor)

13. Financial Ratios

14. 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:

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:

16. 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.

17. Total Asset Turnover (TAT)
Sales/Total Assets
,220,000/33,005,000=1.43
,230,000/32,625,000=1.48
,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:

18. Debt-to-Asset Total Debt/Total Assets
,936,000,000/33,005,000=.42
,570,000,000/32,625,000=.45
,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:

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

20. 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: % % %

21. 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: % % %

22. 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: % % %

23. Book Value Per Share (BVPS)
Common Equity/Shares Outstanding
,069,000,000/1,459,000,000=13.07
,055,000,000/1,470,000,000=12.28
,098,000,000/1,458,000,000=11.04
-Home Depot Numbers:

24. Horizontal Analysis