In Exhibit 2, the graph shows two companies stock performance.

1. Is the ratio analysis result consistent with stock market performance? if not, how do you reconcile a difference in ratio and stock market performance for the year 2001 only?

6 5 4 EXHIBIT 2 | Historical Company Performance 1997 1996 761 930 Home Depot Number of stores" Sq. footage (millions) 1,134 1,333 81 100 123 146 Number of transactions (millions) 550 665 797 937 1,091 Number of employees 124,400 156,700 201,400 227,300 256,300 Lowe's Number of stores 477 520 576 650 744 Sq. footage (millions) 40 48 57 68 81 Number of transactions (millions) 231 268 299 342 395 Number of employees 64,070 72,715 86,160 94,601 108,317 *Excludes Apex Supply, Georgia Lighting, Maintenance Warehouse, Your "Other" Warehouse, and National Blinds. Cumulative Stock Returns ($1 Invested in Dec 1996) $7 The Home Depot www Lowe's S&P 500 3 2 Jan-97 May-97 Sep-97 Jan-98 May-98 Sep-98 Case 10 Value Line Publishing, October 2002 Fiscal Year 1999 2000 Jan-99 624 66 May-99 Sep-99 Jan-00 May-00 Sep-00 Jan-01 May-01 Sep-01 2001 Jan-02 May-02 167 Sep-02 Oft Ratio por 2001 1920 Roe 33 16.8% 18085 ROC 15.2% etab 31.5% Working Capital $3865 Current vatio 1.59 Queele value 0.56 Receivable Turnover 58.2 5.4 luvenbon) Pde Turnover 3.5 Debt to Equaly Home depot lowes 15.3% 10.5%2 28.8% $1963 1.63 0.43 1332 4044 2-6 De b 6 5 4 EXHIBIT 2 | Historical Company Performance 1997 1996 761 930 Home Depot Number of stores" Sq. footage (millions) 1,134 1,333 81 100 123 146 Number of transactions (millions) 550 665 797 937 1,091 Number of employees 124,400 156,700 201,400 227,300 256,300 Lowe's Number of stores 477 520 576 650 744 Sq. footage (millions) 40 48 57 68 81 Number of transactions (millions) 231 268 299 342 395 Number of employees 64,070 72,715 86,160 94,601 108,317 *Excludes Apex Supply, Georgia Lighting, Maintenance Warehouse, Your "Other" Warehouse, and National Blinds. Cumulative Stock Returns ($1 Invested in Dec 1996) $7 The Home Depot www Lowe's S&P 500 3 2 Jan-97 May-97 Sep-97 Jan-98 May-98 Sep-98 Case 10 Value Line Publishing, October 2002 Fiscal Year 1999 2000 Jan-99 624 66 May-99 Sep-99 Jan-00 May-00 Sep-00 Jan-01 May-01 Sep-01 2001 Jan-02 May-02 167 Sep-02 Oft Ratio por 2001 1920 Roe 33 16.8% 18085 ROC 15.2% etab 31.5% Working Capital $3865 Current vatio 1.59 Queele value 0.56 Receivable Turnover 58.2 5.4 luvenbon) Pde Turnover 3.5 Debt to Equaly Home depot lowes 15.3% 10.5%2 28.8% $1963 1.63 0.43 1332 4044 2-6 De b