I recently came across an article on CNN discussing the decline of category killers, and it piqued my interest. It seems that Home Depot and Lowe’s are among the few remaining successful category killers, holding their own against industry giants like Walmart and Amazon. Intrigued by this phenomenon, I delved into some basic financial ratios to see if they could shed light on why this might be the case.
Below, you’ll find a table of ratios for the year 2020. While it’s challenging to interpret these numbers in light of Walmart’s vast product selection, some patterns emerge. For instance, Walmart appears to turn over its inventory more rapidly than either Home Depot or Lowe’s, and it carries significantly less debt. On the other hand, both Home Depot and Lowe’s demonstrated great success in terms of various profitability measures, in contrast to Walmart.
Though these observations don’t offer a definitive solution, they provide an interesting perspective on the competitive landscape among these retailers.
Other reference
What Bed Bath & Beyond, Toys ‘R’ Us and RadioShack have in common | CNN Business
https://www.cnn.com/2023/04/29/business/bed-bath-beyond-toys-r-us-category-killer-retail/index.html
dm811-L4–WMT-v-HD-n-LOW.xlsx
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