Home Depot Logistics Research
HOME DEPOT
Financial Analysis
The Home Depot at the end of 2000 stands on rock solid financial footing as the World’s largest home improvement Retailer. As they continue to grow in size, so has their outcome of success. Home Depot’s net revenues have grown 208% between FY 1995 and FY 2000. Home Depot’s growth in net earnings over the same period has been 284%. The revenue that the firm is retaining as profits is outweighing the total amount being brought into the company. In 1998, Home Depot was leading Lowes in all earnings except earnings per share. Lowe’s EPS equaled $1.37 to Home Depot’s $0.73.It is important to note the activity ratios when talking about an industry where competitors need to carry a lot of inventory to effectively compete. In 2007, Home Depot had a huge supply chain transformation, which led them to the highest sales in fiscal years. After the fiscal year of 2007, there was a huge decrease in sales due to the recession crisis that happened from 2007to 2009. Home Depot was still able to make profit, but it was lower about 2 million. In 2012, Home Depot had a huge recovery in profits due to the housing market and the demand for supplies to fix the damages made from Hurricane Sandy. Home Depot continually leads in total asset turnover as well as inventory turnover. Home Depot also sells out of their stock 6.71 times per year as to Lowe’s 5.91 times. Supply Chain Operations
In 2007 Home Depot began to transform their supply chain operations. These changes were revolutionary for the retailer market. During their transformation, it was decided that they would distribute merchandise from, what they named Rapid Deployment Centers (RDC). These RDC’s are from 400,000 – 700,000 square feet and hold all of the merchandise from their suppliers. Aggregated orders are placed and then distributed to the various store depending on their sales volume.
Home Depot maintains relationships with many suppliers that stock Home Depot stores with over
Financial Analysis
The Home Depot at the end of 2000 stands on rock solid financial footing as the World’s largest home improvement Retailer. As they continue to grow in size, so has their outcome of success. Home Depot’s net revenues have grown 208% between FY 1995 and FY 2000. Home Depot’s growth in net earnings over the same period has been 284%. The revenue that the firm is retaining as profits is outweighing the total amount being brought into the company. In 1998, Home Depot was leading Lowes in all earnings except earnings per share. Lowe’s EPS equaled $1.37 to Home Depot’s $0.73.It is important to note the activity ratios when talking about an industry where competitors need to carry a lot of inventory to effectively compete. In 2007, Home Depot had a huge supply chain transformation, which led them to the highest sales in fiscal years. After the fiscal year of 2007, there was a huge decrease in sales due to the recession crisis that happened from 2007to 2009. Home Depot was still able to make profit, but it was lower about 2 million. In 2012, Home Depot had a huge recovery in profits due to the housing market and the demand for supplies to fix the damages made from Hurricane Sandy. Home Depot continually leads in total asset turnover as well as inventory turnover. Home Depot also sells out of their stock 6.71 times per year as to Lowe’s 5.91 times. Supply Chain Operations
In 2007 Home Depot began to transform their supply chain operations. These changes were revolutionary for the retailer market. During their transformation, it was decided that they would distribute merchandise from, what they named Rapid Deployment Centers (RDC). These RDC’s are from 400,000 – 700,000 square feet and hold all of the merchandise from their suppliers. Aggregated orders are placed and then distributed to the various store depending on their sales volume.
Home Depot maintains relationships with many suppliers that stock Home Depot stores with over