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
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Activity Ratio
Total Asset Turnover
Reported 1.99 2.06 2.10 1.87 2.15 2.46
Adjusted 2.00 2.06 2.12 1.89 2.16 2.22
Liquidity Ratio
Current Ratio
Reported 1.35 1.41 1.01 1.23 1.08 1.11
Adjusted 1.55 1.62 1.16 1.40 1.22 1.24
Solvency Ratios
Debt to Equity
Reported 42.25 27.65 — 11.29 — —
Adjusted 11.99 9.46 18.77 6.25 — 123.91
Debt to Capital
Reported 0.98 0.97 1.04 0.92 1.11 1.07
Adjusted 0.92 0.90 0.95 0.86 1.01 0.99
Financial Leverage
Reported 73.30 48.94 — 21.39 — —
Adjusted 17.50 14.29 29.02 10.11 — 177.49
Profitability Ratios
Net Profit Margin
Reported 9.92% 10.87% 10.87% 9.74% 10.20% 10.28%
Adjusted 9.75% 10.64% 11.14% 9.81% 10.70% 10.09%
Return on Equity (ROE)
Reported 1,450.48% 1,095.07% — 390.00% — —
Adjusted 340.96% 313.50% 686.37% 187.59% — 3,983.94%
Return on Assets (ROA)
Reported 19.79% 22.38% 22.86% 18.23% 21.94% 25.27%
Adjusted 19.49% 21.93% 23.65% 18.55% 23.15% 22.45%

Based on: 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), 10-K (reporting date: 2019-02-03).

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 2022 to 2023 and from 2023 to 2024.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Home Depot Inc. adjusted current ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
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 improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
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 improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
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 decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Home Depot Inc. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Home Depot Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

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

Adjusted Total Asset Turnover

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Reported
Selected Financial Data (US$ in millions)
Net sales 152,669 157,403 151,157 132,110 110,225 108,203
Total assets 76,530 76,445 71,876 70,581 51,236 44,003
Activity Ratio
Total asset turnover1 1.99 2.06 2.10 1.87 2.15 2.46
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net sales2 152,367 156,871 151,930 132,817 110,559 108,180
Adjusted total assets3 76,217 76,126 71,532 70,276 51,097 48,632
Activity Ratio
Adjusted total asset turnover4 2.00 2.06 2.12 1.89 2.16 2.22

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Total asset turnover = Net sales ÷ Total assets
= 152,669 ÷ 76,530 = 1.99

2 Adjusted net sales. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 152,367 ÷ 76,217 = 2.00

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 2022 to 2023 and from 2023 to 2024.

Adjusted Current Ratio

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 29,775 32,471 29,055 28,477 19,810 18,529
Current liabilities 22,015 23,110 28,693 23,166 18,375 16,716
Liquidity Ratio
Current ratio1 1.35 1.41 1.01 1.23 1.08 1.11
Adjusted
Selected Financial Data (US$ in millions)
Current assets 29,775 32,471 29,055 28,477 19,810 18,529
Adjusted current liabilities2 19,253 20,046 25,097 20,343 16,259 14,934
Liquidity Ratio
Adjusted current ratio3 1.55 1.62 1.16 1.40 1.22 1.24

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 29,775 ÷ 22,015 = 1.35

2 Adjusted current liabilities. See details »

3 2024 Calculation
Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 29,775 ÷ 19,253 = 1.55

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 improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Adjusted Debt to Equity

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 44,111 43,193 40,086 37,238 31,483 29,202
Stockholders’ equity (deficit) 1,044 1,562 (1,696) 3,299 (3,116) (1,878)
Solvency Ratio
Debt to equity1 42.25 27.65 — 11.29 — —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 52,243 50,364 46,269 43,422 37,377 33,952
Adjusted stockholders’ equity (deficit)3 4,356 5,326 2,465 6,948 (433) 274
Solvency Ratio
Adjusted debt to equity4 11.99 9.46 18.77 6.25 — 123.91

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 44,111 ÷ 1,044 = 42.25

2 Adjusted total debt. See details »

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

4 2024 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity (deficit)
= 52,243 ÷ 4,356 = 11.99

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 improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Adjusted Debt to Capital

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 44,111 43,193 40,086 37,238 31,483 29,202
Total capital 45,155 44,755 38,390 40,537 28,367 27,324
Solvency Ratio
Debt to capital1 0.98 0.97 1.04 0.92 1.11 1.07
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 52,243 50,364 46,269 43,422 37,377 33,952
Adjusted total capital3 56,599 55,690 48,734 50,370 36,944 34,226
Solvency Ratio
Adjusted debt to capital4 0.92 0.90 0.95 0.86 1.01 0.99

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 44,111 ÷ 45,155 = 0.98

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2024 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 52,243 ÷ 56,599 = 0.92

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 improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 76,530 76,445 71,876 70,581 51,236 44,003
Stockholders’ equity (deficit) 1,044 1,562 (1,696) 3,299 (3,116) (1,878)
Solvency Ratio
Financial leverage1 73.30 48.94 — 21.39 — —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 76,217 76,126 71,532 70,276 51,097 48,632
Adjusted stockholders’ equity (deficit)3 4,356 5,326 2,465 6,948 (433) 274
Solvency Ratio
Adjusted financial leverage4 17.50 14.29 29.02 10.11 — 177.49

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 76,530 ÷ 1,044 = 73.30

2 Adjusted total assets. See details »

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

4 2024 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity (deficit)
= 76,217 ÷ 4,356 = 17.50

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 decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Adjusted Net Profit Margin

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 15,143 17,105 16,433 12,866 11,242 11,121
Net sales 152,669 157,403 151,157 132,110 110,225 108,203
Profitability Ratio
Net profit margin1 9.92% 10.87% 10.87% 9.74% 10.20% 10.28%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 14,852 16,697 16,919 13,034 11,831 10,916
Adjusted net sales3 152,367 156,871 151,930 132,817 110,559 108,180
Profitability Ratio
Adjusted net profit margin4 9.75% 10.64% 11.14% 9.81% 10.70% 10.09%

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 15,143 ÷ 152,669 = 9.92%

2 Adjusted net earnings. See details »

3 Adjusted net sales. See details »

4 2024 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Adjusted net sales
= 100 × 14,852 ÷ 152,367 = 9.75%

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 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 15,143 17,105 16,433 12,866 11,242 11,121
Stockholders’ equity (deficit) 1,044 1,562 (1,696) 3,299 (3,116) (1,878)
Profitability Ratio
ROE1 1,450.48% 1,095.07% — 390.00% — —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 14,852 16,697 16,919 13,034 11,831 10,916
Adjusted stockholders’ equity (deficit)3 4,356 5,326 2,465 6,948 (433) 274
Profitability Ratio
Adjusted ROE4 340.96% 313.50% 686.37% 187.59% — 3,983.94%

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
ROE = 100 × Net earnings ÷ Stockholders’ equity (deficit)
= 100 × 15,143 ÷ 1,044 = 1,450.48%

2 Adjusted net earnings. See details »

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

4 2024 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted stockholders’ equity (deficit)
= 100 × 14,852 ÷ 4,356 = 340.96%

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 deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 15,143 17,105 16,433 12,866 11,242 11,121
Total assets 76,530 76,445 71,876 70,581 51,236 44,003
Profitability Ratio
ROA1 19.79% 22.38% 22.86% 18.23% 21.94% 25.27%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 14,852 16,697 16,919 13,034 11,831 10,916
Adjusted total assets3 76,217 76,126 71,532 70,276 51,097 48,632
Profitability Ratio
Adjusted ROA4 19.49% 21.93% 23.65% 18.55% 23.15% 22.45%

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 15,143 ÷ 76,530 = 19.79%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 14,852 ÷ 76,217 = 19.49%

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 2022 to 2023 and from 2023 to 2024.