Topic: Bench Mark Comparison Home Depot and Lowes

The Research Paper will have three sections: the introduction, main paper and the summary.
INTRODUCTION
In the introduction section, you will state the purpose of your paper, the company you are analyzing, why you chose
the company and the comparable company that you will be using as your bench mark.
MAIN SECTION
The main paper will have many sub-sections
? In the first sub-section, you will provide detailed information about your company. This will include such
information as company’s name, history, stock market where the company trades, the company’s industry,
major competitor(s), the strengths and weaknesses of the company (SWOT analysis). You will also provide
information on the three year financial statements that you will be using in the analysis – Balance Sheet,
Income Statements and Cash Flow Statement. The Financial statements should be attached as an appendix.
? The next section will involve reporting any significant changes in the three financial statements: Balance
Sheet, Income Statement and Cash Flow Statement.
? The next section will entail a detailed analysis of your company. Compile your calculations of the five
categories of ratios (Liquidity, Asset Management, Debt, Profitability and Market Ratios). You should have a
one page summary of the five categories of ratios for your company and the comparable company (benchmark).
You need at least 2 ratios in each of the five categories of ratios. Discussion about your findings should follow
immediately under your ratios summary table in the following order:
o Analysis of the liquidity position of the firm
o Analysis of the long term solvency position of the firm (debt analysis)
o Analysis of the asset management position of the firm (efficiency in utilizing assets)
o Analysis of the profitability position of the firm
o Discussion of the market based ratios
? The next section will entail making a Sales forecast for your company based on your analysis. Please
explain the basis of your forecast.
SUMMARY
? The third and final section of your paper will be a summary of your analysis, suggestions as to how to
address the problems you identified in your analysis, suggestion as to how to build on any identified strength
and limitations of your analysis.