The ratings on Home Depot Inc. are based on the company's leading position in the still-fragmented home improvement industry and its consistently excellent financial profile. Home Depot, which pioneered the full-service, warehouse-style format in the 1970s, has increased its market share in the $156 billion do-it-yourself home improvement industry to 24%. Although the industry remains fragmented, Home Depot is the clear leader, at more than twice the size of its nearest competitor (Lowe's Cos. Inc.). In addition, by increasing its focus on contractors, Home Depot expands its market potential to more than $400 billion. Home Depot's quality of customer service, competitive prices, and broad merchandise selection distinguish it from its competition. The company's annual store growth of more than 20%
