The Lowe’s Company
The Lowe’s Company
The Lowe’s corporation has been in operation since 1952. Incorporation of the company was in Carolina; it has grown from the center of incorporation, to establish branches across the United States, Mexico and Canada. It has over one thousand, seven hundred and forty five branches. The company deals with home appliances. It boomed in the wake of the reconstruction after the World War II. It has a whooping two hundred and forty eight thousand employees who serve over fifteen million customers a week. It stocks over fifteen product categories. The company is among the fortune top one hundred and is the world’s second largest dealer in home appliances. Its conversion from a private enterprise to a public business was in1961. Its share securities are among the most traded in the New York Stock Exchange. Its shares trade under the ticker symbol, LOW, in the NYSE. Share trading in the year 2011 netted revenue of fifty billion and two hundred million, which brought a profit of one billion and eight hundred million. The company has a booming profitability every fiscal year since its incorporation.
The operating cash flows of the company in the 2011 fiscal year were four billion, three hundred million. The dividends to the shareholders have grown from a low of a penny in 2001 to high of fourteen cents in 2011. Since its incorporation, the company has never recorded a downward spiral in its growth. The company’s financial position is substantially health. Its cash flows have been in a rise since its incorporation. Its profitability trend has never changed through the years. The revenues have been on the rise since incorporation; consequently, its earnings per share have risen to an all times high in 2011. With its wide clientele, the company is a going concern; it serves over fifteen million clients weekly, in its online stores, mobile applications and its physical premises. Since the floatation of its shares in 1961, its shares have been the most traded in the New York stock market. This is because of the company’s solid base which eliminates any fears from its stocks holders. There has never been a compromise to the company’s solvency.
Throughout the years, the company has always been solvent. It boasts the position of being the second largest home appliances dealer in the international front. Lowe’s has a competitive advantage against its competitors. Its second place in the world’s home appliances industry places it in a position of market leadership. Its competitive edge is above its competitors. This is notable from the overwhelming number of its customers. Its placement in the second position, in the industry, is evidence that company surpasses its competitors in the market; its ever rising profitability is also an indicator of its flourishing business, Brown, Schilling & Wuerffel (2001). The growth of its share prices shows the confidence of investors in it; it is arguably a going concern. Its position as a going concern venture is also evident from its ever rising dividends to its shareholders. At its incorporation in the wake of the reconstruction boom at the end of the World War II, the company had a strategy of eliminating middlemen and dealing directly with the manufacturers, this cut down its cost of operations and consequently went up to date.
References
Brown, J., Schilling, C. & Wuerffel, D. (2001). The competitive edge: How to win every time you compete.USA: Tyndale House Publishers Inc
Going concern principle, DOI: http://www.accountingtools.com/going-concern-principle Retrieved on 10th October 2012
Lowe’s company, DOI: http://media.lowes.com/about-lowes/. Retrieved on 10th October 2012
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