The ratings on Atlanta, Ga.-based Home Depot Inc. reflect the company's outstanding position in the still-fragmented home improvement industry and its excellent financial profile. Home Depot, which pioneered the full-service, warehouse-style format in the 1970s, has established itself as the clear leader in the home improvement industry. It is twice the size of its nearest competitor, Lowe's Cos. Inc. Over the past few years, Home Depot shifted its internal focus, moving away from aggressive store growth to enhancing its core business via store remodels, improved operating efficiency and working capital management, increased training, and the addition of business lines. As a result, operating margins have improved since 2003, to roughly 14.5% for the 12 months ended April 30, 2006. Same-store
