No. of Recommendations: 0
**warning this is my first ranking post--accuracy not guaranteed**
here are the HD numbers for the quarter ending 10/31/99, i think that's Q3 99:
Home Depot Lowes <Fill in Name> <Fill in Name>
Current Period Year-ago PeriodYear-over-Year Current Period Current Period Current Period
Oct-99 Oct-98 Growth Oct-99 <Date> <Date>
Income Statement millions
Sales 9,877 7,699 28.3% 3,909
Cost of Goods S 6,983 5,522 26.5% 2,820
Net Income 573 392 46.2% 168
Shares Outstand 1,561 1,547 0.9%
Balance Sheet . . .
Cash & Equivale 976 62 1474.2% 705
Current Assets 7,058 4,933 43.1% 3,877
Short-term Debt 8 14 -42.9% 191
Current Liabili 4,164 2,857 45.7% 2,391
Long-term Debt 735 1,566 -53.1% 1,733
1 0 0
Margins & Ratios . . . Competitors' Average
Gross Margins 29.3% 28.3% 1.0 27.9% 27.9%
Net Margins 5.8% 5.1% 0.7 4.3% 4.3%
Cash-to-Debt 1.31 0.04 3247.5% 0.37 0.37
Net Cash 233.0 -1518.0 N/A -1219.0 -1219.0
Fool Flow Ratio 1.46 1.71 -14.6% 1.44 1.44
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Ranking Rule Makers
1) Brand Points (0-1) 3) Financial Dire Points (0-3)
Familiarity 1 Sales Growth 3
Openness 1 Gross Margins 3
Optimism 1 Net Margins 3
Legitimacy 1 Shares Outstandin 2
Inevitability 0 Cash-to-Debt 2
Solitariness 1 Fool Flow Ratio 3
Humor 1 Expansion Potenti 3
Subtotal 6 Subtotal 19
2) Financial Loca Points (0-2) 4) Monopoly Statu Points (0-4)
Mass Market Habit 2 Gross Margins 2
Gross Margins 0 Net Margins 2
Net Margins 0 Net Cash 4
Cash-to-Debt 1 Fool Flow Ratio 0
Fool Flow Ratio 0 Convenience 4
Your Interest 0 Subtotal 12
Subtotal 3
5) Your Enjoymen 1
Total Score 41 Second Tier
HD has really improved since it's last ranking (36)
see post 4003
http://boards.fool.com/Message.asp?id=1030043001263000&sort=postdate
the major factor seems to be a huge increase in cash
which improves the cash to debt and flow ratio such that HD gains 7 points
(compared with it's last ranking)
based on financial direction and monopoly status.
anyone mind double checking the cash figures for me?
not sure how cash rose so rapidly, perhaps disproportionate net income rise...
also note i did not give HD a point for inevitability while previous rankings have.
although unlikely to achieve rule maker status based on static figures (financial location)
because margins will likely remain low,
HD is achieving near rule maker ranking by it's strong brand,
financial direction and monopoly status figures.
btw, i couldn't think of any other competitor's.
ACE is privately held. i'm not familiar with Lowe's--i'm open to suggestions.
as this is my first ranking
please let me know if you see any egregious errors
thanks
y
