Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
**warning this is my first ranking post--accuracy not guaranteed**

Anything free comes with no guarantee, right ?! ;^)

Good looking ranker tho I cant swear for the numbers. I do suspect that this is about as high as HD might get too. Why?? Well the flowie could get them 4-6 more points if they get it down under 1.5 but with very little ST debt that means they have to lower current assets which are probably tied up in A/R and Inventories - typical for merchant companies like HD.

The other place they lose big is margins (gross and net). Again they generate lots of cash, as you noted in your report, when things are going well, but, merchant retailer companies rarely, if ever, get the margins up to the top RM standards of 50% and 10-12% (gross and net). Dell is in a similar situation regarding margins.

Overall, I'd say they are a Merchant-King rather than a RM. Certainly seems, from this report, as if they may be starting to get the best of Loews.

cheers,

jgc
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.