The paper examines financial statements of The Home Depot and Lowe's Companies discussing the difference in the companies' accounting policies and the features of their financial reporting. Analysis is conducted of the financial ratios contained in the companies' annual reports for 2002-2006. The main off-balance sheet arrangements are identified; the current value of the assets and liabilities is assessed; the upside in the share price is defined; the company value with relation to their peers is considered.