Home Depot, Lowe's, and Wolseley: Financial Analysis of the Major Building Equipment Retailers
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Home Depot, Lowe's and Wolseley are all major building equipment retailers, Wolseley having a more global presence as a UK-based firm that started in Australia. Home Depot is a North American operator and Lowe's is generally in the US only. This paper is going to analyze the balance sheets of these different firms to determine how each has performed over the course of recent years.
The first company that will be analyzed is Home Depot. Home Depot's total assets increased to $40,518 million from $40,125, an increase of 0.9%. These figures, however, are lower than the value of total assets on the books for HD for the prior three years. The 2008 fiscal year was the point where Home Depot had the highest asset levels at $44.324 billion. The recession has been the biggest culprit for the decline in the size of Home Depot. All of the firms in the building supplies industry have a strong relationship between their sales and the strength of the housing market, as home purchases are a major impetus for home renovation projects. Home Depot's size declined with the onset of slowness in the housing market, and it is expected that its size will not begin to increase until the housing market recovers. Home Depot management has noted that there are signs of life in the US housing market, and that this should be taken as an encouraging sign for the company (Isidore, 2012). Indeed, the company's balance sheet has grown in size throughout the 2013 fiscal year, so that the latest Q3 total