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=1.322009-9,190,000/7,560,000=1.222008-8,686,000/7,751,000=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 current assets. 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=.202009-(9,190,000-8,209,000)/7,560,000=.132008-(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 inventories2009- For every dollar in current liabilities Lowe’s has, they have $.13 cents in current assets minus inventories2008- For every dollar in current liabilities Lowe’s has, they have $.14 cents in current assets minus inventories

-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=1.432009-48,230,000/32,625,000=1.482008-48,283,000/30,869,000=1.56

2010-For every dollar in total assets, Lowes has $1.43 in total sales2009-For every dollar in total assets, Lowes has $1.48 in total sales2008-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=.422009-14,570,000,000/32,625,000=.452008-14,771,000,000/30,869,000=.48

2010-Lowes finances each dollar of assets with .42 cents in total debt2009-Lowes finances each dollar of assets with .45 cents in total debt2008-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/A2009-3,506,000/298,000=11.772008-4,750.000/239.000=19.87

2010-Lowes had no interest charges in 20102009-Lowes could cover any interest charges that might arise 11.77

times2008-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%2009-2,195,000/48,230,000=.045 or 4.5%2008-2,809,000/48,283,000=.058 or 5.8%

2010- For every one dollar in sales revenue that Lowes has, they have 3.7 cents in net income2009- For every one dollar in sales revenue that Lowes has, they have 4.5 cents in net income2008- For every one dollar in sales revenue that Lowes has, they have 5.8 cents in net income

-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 Income2009-For every dollar invested in total assets, Lowes has 6.7 cents in net

income2008-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 9cents in net income2009-For every one dollar in stockholder’s equity Lowes has, they have 12cents in net income2008-For every one dollar in stockholder’s equity Lowes has, they have 17cents in net income

-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=13.072009-18,055,000,000/1,470,000,000=12.282008-16,098,000,000/1,458,000,000=11.04

-Home Depot Numbers: 2010-11.42 2009-10.48 2008-10.48

Horizontal Analysis

Jan 29th,2010 Jan 30th, 2009 Feb 1st, 2008 2010 2009 2008Total Revenue 47,220,000 48,230,000 48,283,000 97.80% 99.89% 100.00%Cost Of Revenue 30,757,000 31,729,000 31,556,000 97.47% 100.55% 100.00%Gross Profit 16,463,000 16,501,000 16,727,000 98.42% 98.65% 100.00%

Operating ExpensesResearch Development - - - - - -Selling General and Admin 11,688,000 11,074,000 10,515,000 111.16% 105.32% 100.00%Non Recurring 49,000 102,000 141,000 34.75% 72.34% 100.00%Others 1,614,000 1,539,000 1,366,000 118.16% 112.66% 100.00%Total Operating Expenses - - -

Operating Income or Loss 2,825,000 3,506,000 4,705,000 60.04% 74.52% 100.00%Income From Continuing OperationsTotal Other Income/Expenses Net - 18,000 45,000 - 40.00% 100.00%Earnings Before Interest and Taxes 2,825,000 3,506,000 4,750,000 59.47% 73.81% 100.00%Interest Expense - 298,000 239,000 - 124.69% 100.00%Income Before Tax 2,825,000 3,506,000 4,511,000 62.62% 77.72% 100.00%Income Tax Expense 1,042,000 1,311,000 1,702,000 61.22% 77.03% 100.00%Minority Interest - - -

Net Income from Continuing Ops 1,783,000 2,195,000 2,809,000 63.47% 78.14% 100.00%Non-Recurring EventsDiscountiued Operations - - - - - -Extraordinary Items - - - - - -Effect Of Accounting Changes - - - - - -Other Items - - - - - -

Net Income 1,783,000 2,195,000 2,809,000 63.47% 78.14% 100.00%Preferred Stock and Other Adjustments - -Net Income Applicable to Common Shares 1,783,000 2,195,000 2,809,000 63.47% 78.14% 100.00%

Lowe's Companies Inc-Income StatementFor years 2010, 2009, 2008

Horizontal Analysis