6 Why might The Home Depot and Lowes choose such odd dates t

6. Why might The Home Depot and Lowe\'s choose such odd dates to end their fiscal years?

Solution

The reasons are few:

1. The sales are less in january when compared to december so they can more focus on financial statements

In december the burden will be more and to focus at a time on sales and preparing financial statements is difficult.

2. They can clear last year stock in january and also the purchases by company also lower in the january month so the inventory will be closed by year end. And therefore it is easy for them to prepare accounts and do auditing.

3. Because of its size of operations and other factors, it cannot focus on calender year end. So chooses january as fiscal year end.