Stock Analysis on Net
Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Home Depot Inc., adjusted financial ratios

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Activity Ratio
Total Asset Turnover
Reported 1.66 1.99 2.06 2.10 1.87 2.15
Adjusted 1.66 2.00 2.06 2.12 1.89 2.16
Liquidity Ratio
Current Ratio
Reported 1.11 1.35 1.41 1.01 1.23 1.08
Adjusted 1.22 1.55 1.62 1.16 1.40 1.22
Solvency Ratios
Debt to Equity
Reported 8.04 42.25 27.65 — 11.29 —
Adjusted 5.69 11.99 9.46 18.77 6.25 —
Debt to Capital
Reported 0.89 0.98 0.97 1.04 0.92 1.11
Adjusted 0.85 0.92 0.90 0.95 0.86 1.01
Financial Leverage
Reported 14.48 73.30 48.94 — 21.39 —
Adjusted 8.76 17.50 14.29 29.02 10.11 —
Profitability Ratios
Net Profit Margin
Reported 9.28% 9.92% 10.87% 10.87% 9.74% 10.20%
Adjusted 8.76% 9.75% 10.64% 11.14% 9.81% 10.70%
Return on Equity (ROE)
Reported 222.98% 1,450.48% 1,095.07% — 390.00% —
Adjusted 127.60% 340.96% 313.50% 686.37% 187.59% —
Return on Assets (ROA)
Reported 15.40% 19.79% 22.38% 22.86% 18.23% 21.94%
Adjusted 14.57% 19.49% 21.93% 23.65% 18.55% 23.15%

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Home Depot Inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Home Depot Inc. adjusted current ratio deteriorated from 2023 to 2024 and from 2024 to 2025.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Home Depot Inc. adjusted debt-to-equity ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Home Depot Inc. adjusted debt-to-capital ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Home Depot Inc. adjusted financial leverage ratio increased from 2023 to 2024 but then decreased significantly from 2024 to 2025.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Home Depot Inc. adjusted net profit margin ratio deteriorated from 2023 to 2024 and from 2024 to 2025.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Home Depot Inc. adjusted ROE improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Home Depot Inc. adjusted ROA deteriorated from 2023 to 2024 and from 2024 to 2025.

Home Depot Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Reported
Selected Financial Data (US$ in millions)
Net sales 159,514 152,669 157,403 151,157 132,110 110,225
Total assets 96,119 76,530 76,445 71,876 70,581 51,236
Activity Ratio
Total asset turnover1 1.66 1.99 2.06 2.10 1.87 2.15
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net sales2 159,362 152,367 156,871 151,930 132,817 110,559
Adjusted total assets3 95,850 76,217 76,126 71,532 70,276 51,097
Activity Ratio
Adjusted total asset turnover4 1.66 2.00 2.06 2.12 1.89 2.16

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

1 2025 Calculation
Total asset turnover = Net sales ÷ Total assets
= 159,514 ÷ 96,119 = 1.66

2 Adjusted net sales. See details »

3 Adjusted total assets. See details »

4 2025 Calculation
Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 159,362 ÷ 95,850 = 1.66

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Home Depot Inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025.

Adjusted Current Ratio

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Reported
Selected Financial Data (US$ in millions)
Current assets 31,683 29,775 32,471 29,055 28,477 19,810
Current liabilities 28,661 22,015 23,110 28,693 23,166 18,375
Liquidity Ratio
Current ratio1 1.11 1.35 1.41 1.01 1.23 1.08
Adjusted
Selected Financial Data (US$ in millions)
Current assets 31,683 29,775 32,471 29,055 28,477 19,810
Adjusted current liabilities2 26,051 19,253 20,046 25,097 20,343 16,259
Liquidity Ratio
Adjusted current ratio3 1.22 1.55 1.62 1.16 1.40 1.22

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 31,683 ÷ 28,661 = 1.11

2 Adjusted current liabilities. See details »

3 2025 Calculation
Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 31,683 ÷ 26,051 = 1.22

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Home Depot Inc. adjusted current ratio deteriorated from 2023 to 2024 and from 2024 to 2025.

Adjusted Debt to Equity

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Reported
Selected Financial Data (US$ in millions)
Total debt 53,383 44,111 43,193 40,086 37,238 31,483
Stockholders’ equity (deficit) 6,640 1,044 1,562 (1,696) 3,299 (3,116)
Solvency Ratio
Debt to equity1 8.04 42.25 27.65 — 11.29 —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 62,290 52,243 50,364 46,269 43,422 37,377
Adjusted stockholders’ equity (deficit)3 10,943 4,356 5,326 2,465 6,948 (433)
Solvency Ratio
Adjusted debt to equity4 5.69 11.99 9.46 18.77 6.25 —

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

1 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 53,383 ÷ 6,640 = 8.04

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity (deficit). See details »

4 2025 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity (deficit)
= 62,290 ÷ 10,943 = 5.69

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Home Depot Inc. adjusted debt-to-equity ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.

Adjusted Debt to Capital

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Reported
Selected Financial Data (US$ in millions)
Total debt 53,383 44,111 43,193 40,086 37,238 31,483
Total capital 60,023 45,155 44,755 38,390 40,537 28,367
Solvency Ratio
Debt to capital1 0.89 0.98 0.97 1.04 0.92 1.11
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 62,290 52,243 50,364 46,269 43,422 37,377
Adjusted total capital3 73,233 56,599 55,690 48,734 50,370 36,944
Solvency Ratio
Adjusted debt to capital4 0.85 0.92 0.90 0.95 0.86 1.01

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 53,383 ÷ 60,023 = 0.89

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2025 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 62,290 ÷ 73,233 = 0.85

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Home Depot Inc. adjusted debt-to-capital ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.

Adjusted Financial Leverage

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Reported
Selected Financial Data (US$ in millions)
Total assets 96,119 76,530 76,445 71,876 70,581 51,236
Stockholders’ equity (deficit) 6,640 1,044 1,562 (1,696) 3,299 (3,116)
Solvency Ratio
Financial leverage1 14.48 73.30 48.94 — 21.39 —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 95,850 76,217 76,126 71,532 70,276 51,097
Adjusted stockholders’ equity (deficit)3 10,943 4,356 5,326 2,465 6,948 (433)
Solvency Ratio
Adjusted financial leverage4 8.76 17.50 14.29 29.02 10.11 —

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

1 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 96,119 ÷ 6,640 = 14.48

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity (deficit). See details »

4 2025 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity (deficit)
= 95,850 ÷ 10,943 = 8.76

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Home Depot Inc. adjusted financial leverage ratio increased from 2023 to 2024 but then decreased significantly from 2024 to 2025.

Adjusted Net Profit Margin

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Reported
Selected Financial Data (US$ in millions)
Net earnings 14,806 15,143 17,105 16,433 12,866 11,242
Net sales 159,514 152,669 157,403 151,157 132,110 110,225
Profitability Ratio
Net profit margin1 9.28% 9.92% 10.87% 10.87% 9.74% 10.20%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 13,963 14,852 16,697 16,919 13,034 11,831
Adjusted net sales3 159,362 152,367 156,871 151,930 132,817 110,559
Profitability Ratio
Adjusted net profit margin4 8.76% 9.75% 10.64% 11.14% 9.81% 10.70%

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

1 2025 Calculation
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 14,806 ÷ 159,514 = 9.28%

2 Adjusted net earnings. See details »

3 Adjusted net sales. See details »

4 2025 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Adjusted net sales
= 100 × 13,963 ÷ 159,362 = 8.76%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Home Depot Inc. adjusted net profit margin ratio deteriorated from 2023 to 2024 and from 2024 to 2025.

Adjusted Return on Equity (ROE)

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Reported
Selected Financial Data (US$ in millions)
Net earnings 14,806 15,143 17,105 16,433 12,866 11,242
Stockholders’ equity (deficit) 6,640 1,044 1,562 (1,696) 3,299 (3,116)
Profitability Ratio
ROE1 222.98% 1,450.48% 1,095.07% — 390.00% —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 13,963 14,852 16,697 16,919 13,034 11,831
Adjusted stockholders’ equity (deficit)3 10,943 4,356 5,326 2,465 6,948 (433)
Profitability Ratio
Adjusted ROE4 127.60% 340.96% 313.50% 686.37% 187.59% —

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

1 2025 Calculation
ROE = 100 × Net earnings ÷ Stockholders’ equity (deficit)
= 100 × 14,806 ÷ 6,640 = 222.98%

2 Adjusted net earnings. See details »

3 Adjusted stockholders’ equity (deficit). See details »

4 2025 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted stockholders’ equity (deficit)
= 100 × 13,963 ÷ 10,943 = 127.60%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Home Depot Inc. adjusted ROE improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025.

Adjusted Return on Assets (ROA)

Microsoft Excel
Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Reported
Selected Financial Data (US$ in millions)
Net earnings 14,806 15,143 17,105 16,433 12,866 11,242
Total assets 96,119 76,530 76,445 71,876 70,581 51,236
Profitability Ratio
ROA1 15.40% 19.79% 22.38% 22.86% 18.23% 21.94%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 13,963 14,852 16,697 16,919 13,034 11,831
Adjusted total assets3 95,850 76,217 76,126 71,532 70,276 51,097
Profitability Ratio
Adjusted ROA4 14.57% 19.49% 21.93% 23.65% 18.55% 23.15%

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

1 2025 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 14,806 ÷ 96,119 = 15.40%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2025 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 13,963 ÷ 95,850 = 14.57%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Home Depot Inc. adjusted ROA deteriorated from 2023 to 2024 and from 2024 to 2025.