Home Depot VS Lowe's Essay Example | Topics and Well Written Essays - 750 words

Home Depot VS Lowes - Essay ExampleSuch conditions only step to the fore the inability of the customers to improve their homes by making purchases in Home Depot or Lowes. This is a big risk for both companies (Good fellow, 2013).However, in such a complicated time, Home Depot overcomes financial barriers, and if one compares the change in capitalization, then Home Depot will have more than seventy cardinal dollars, that is approximately thirty- five percent of the increase in selling. At the same time, Lowes states about thirty billion and fourteen percent of decrease of its selling availabilities. Moreover, the prices at Home Depots were lower, while at Lowes they stayed an edge. However, the online availabilities showed that a certain retentiveness had lower prices in one area or the item the other store had the advantage. A price variation, at the same time, revealed great difference between the two retailers and here one could give the edge to Home Depot, especially when the on-line(prenominal) economic environment squeezed out profits. However, the higher margins give Home Depot possibility to pressure the returns of Lowes.Since the return on assetsis essential for discount retailers it is practically unattainable to raise prices easily, asset turnover gives the possibility to enhance ones profitability. ROA indicates how effective one can turn assets into benefit for further profit. While, one wants to obtain the ROA minimum of seven percent, the advantage here is for Home Depot. For the business the return on equitymeasures the way the company is generating good returns of the shareholders money. Here again attention is an important and any number over fifteen percent is determined as exceptional. Other words, the higher percent of persistence, the better the company develops. This is a considerable advantage for Home Depot (Stock, 2013).In addition, according to the Net Promoter Score, special measures that determine a