Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Home Depot Inc., long-term (investment) activity ratios
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).
- Net Fixed Asset Turnover
- The ratio exhibited an upward trend from 4.84 in early 2020 to a peak of 6.14 by early 2023, indicating improved efficiency in using net fixed assets to generate sales. However, a slight decline to 5.84 in early 2024 was observed, followed by a modest recovery to 5.97 in early 2025. Overall, this reflects generally strong asset utilization with some recent moderation.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted asset turnover metric followed a similar increasing pattern from 3.89 in early 2020 to a high of 4.85 in early 2022. After stabilizing around 4.83 in early 2023, it declined in early 2024 to 4.49 and remained relatively stable at 4.52 in early 2025. This suggests that when accounting for lease assets, efficiency gains were less pronounced and recently experienced a small decrease.
- Total Asset Turnover
- The total asset turnover ratio decreased from 2.15 in early 2020 to 1.87 in early 2021, then rebounded to 2.10 by early 2022, remaining near this level through 2023. A gradual decline resumed thereafter, dropping to 1.99 in early 2024 and further to 1.66 in early 2025. This indicates fluctuating efficiency in generating revenue from total assets, with a downward trend in the most recent years.
- Equity Turnover
- Data for equity turnover is missing in early 2020 and early 2022. The available figures show extreme volatility, with a value of 40.05 in early 2021 that surged to 100.77 in early 2023 and further to 146.23 in early 2024, before sharply falling to 24.02 in early 2025. Such fluctuations suggest significant changes in equity utilization or underlying accounting/pricing practices affecting this ratio over the periods.
Net Fixed Asset Turnover
Home Depot Inc., net fixed asset turnover calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 159,514) | 152,669) | 157,403) | 151,157) | 132,110) | 110,225) | |
| Net property and equipment | 26,702) | 26,154) | 25,631) | 25,199) | 24,705) | 22,770) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 5.97 | 5.84 | 6.14 | 6.00 | 5.35 | 4.84 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 2.52 | 2.82 | 2.75 | 2.93 | 3.41 | |
| Lowe’s Cos. Inc. | 4.74 | 4.89 | 5.53 | 5.05 | 4.68 | 3.86 | |
| TJX Cos. Inc. | 7.67 | 8.25 | 8.63 | 9.21 | 6.38 | 7.83 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 3.07 | 3.47 | 3.43 | 3.46 | 3.82 | |
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Discretionary | — | 3.22 | 3.50 | 3.47 | 3.31 | 3.37 | |
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 fixed asset turnover = Net sales ÷ Net property and equipment
= 159,514 ÷ 26,702 = 5.97
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a consistent upward trend from February 2020 through January 2023, increasing from $110,225 million to $157,403 million. However, a slight decline occurred in the period ending January 28, 2024, with sales dropping to $152,669 million. This was followed by a rebound in the latest period ending February 2, 2025, where net sales rose again to $159,514 million, surpassing previous highs.
- Net Property and Equipment
- The net property and equipment values demonstrated steady growth across all periods without interruption. Beginning at $22,770 million in February 2020, there was a continual increase each year, reaching $26,702 million by February 2025. This indicates ongoing investment in physical assets over the evaluated timeframe.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio generally improved from 4.84 in February 2020 to a peak of 6.14 in January 2023, suggesting enhanced efficiency in generating sales from fixed assets. This was followed by a slight decline to 5.84 in January 2024, but the ratio partially recovered to 5.97 by February 2025. Overall, the ratio reflects an effective utilization of fixed assets with some variability toward the later periods.
- Summary of Trends
- The data reflects a company experiencing growth in both sales and fixed assets over the examined years. While sales growth showed a minor setback in early 2024, it resumed an upward trajectory thereafter. Investments in property and equipment increased steadily, supporting operational capacity expansion. The fixed asset turnover ratio improvements imply efficient asset use, although slight fluctuations at the end of the period may warrant monitoring.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Home Depot Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 159,514) | 152,669) | 157,403) | 151,157) | 132,110) | 110,225) | |
| Net property and equipment | 26,702) | 26,154) | 25,631) | 25,199) | 24,705) | 22,770) | |
| Operating lease right-of-use assets | 8,592) | 7,884) | 6,941) | 5,968) | 5,962) | 5,595) | |
| Net property and equipment (including operating lease, right-of-use asset) | 35,294) | 34,038) | 32,572) | 31,167) | 30,667) | 28,365) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.52 | 4.49 | 4.83 | 4.85 | 4.31 | 3.89 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Amazon.com Inc. | — | 1.94 | 2.08 | 2.03 | 2.17 | 2.56 | |
| Lowe’s Cos. Inc. | 3.91 | 4.04 | 4.60 | 4.15 | 3.90 | 3.20 | |
| TJX Cos. Inc. | 3.32 | 3.40 | 3.36 | 3.44 | 2.29 | 2.90 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 2.33 | 2.55 | 2.52 | 2.55 | 2.83 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Discretionary | — | 2.51 | 2.68 | 2.66 | 2.51 | 2.57 | |
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 fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Net property and equipment (including operating lease, right-of-use asset)
= 159,514 ÷ 35,294 = 4.52
2 Click competitor name to see calculations.
- Net Sales
- Net sales have exhibited a generally upward trajectory over the analyzed periods, increasing from 110,225 million US dollars in February 2020 to 159,514 million US dollars by February 2025. Notably, the growth rate appears to slow between the fiscal years ending in January 2023 and January 2024, where sales slightly decreased from 157,403 million to 152,669 million, before recovering again by the subsequent period.
- Net Property and Equipment (Including Operating Lease, Right-of-Use Asset)
- The net value of property and equipment has consistently increased each year, starting at 28,365 million US dollars in February 2020 and reaching 35,294 million US dollars in February 2025. This steady increment suggests ongoing investment in fixed assets and leased properties, supporting operational capacity expansion or modernization.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The ratio of net fixed asset turnover rose from 3.89 in February 2020 to a peak of 4.85 in January 2022, indicating an improved efficiency in utilizing fixed assets to generate sales during this period. Following the peak, the ratio slightly declined to 4.83 by January 2023, and further decreased to 4.49 in January 2024, before marginally increasing to 4.52 in February 2025. This trend suggests a minor reduction in asset turnover efficiency after 2022, potentially influenced by higher asset base growth relative to sales or operational factors.
Total Asset Turnover
Home Depot Inc., total asset turnover calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| 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) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 1.66 | 1.99 | 2.06 | 2.10 | 1.87 | 2.15 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 1.02 | 1.09 | 1.11 | 1.12 | 1.20 | |
| Lowe’s Cos. Inc. | 1.94 | 2.07 | 2.22 | 2.16 | 1.92 | 1.83 | |
| TJX Cos. Inc. | 1.78 | 1.82 | 1.76 | 1.71 | 1.04 | 1.73 | |
| Total Asset Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 1.20 | 1.30 | 1.33 | 1.27 | 1.40 | |
| Total Asset Turnover, Industry | |||||||
| Consumer Discretionary | — | 0.94 | 0.97 | 0.96 | 0.88 | 0.84 | |
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 Click competitor name to see calculations.
- Net Sales
- Net sales showed a consistent upward trend from 2020 to 2025 with only a slight decline observed in 2024. Starting at 110,225 million US dollars in 2020, net sales increased steadily to reach 159,514 million US dollars by 2025. The most significant year-over-year increases occurred between 2020 and 2022. Although a small dip happened in 2024, the upward trajectory resumed in 2025, indicating overall growth in sales over the analyzed period.
- Total Assets
- Total assets exhibited a continuous increase throughout the years. Beginning at 51,236 million US dollars in 2020, total assets rose sharply to 96,119 million US dollars by 2025. The largest increments appeared between 2020 and 2021, and again from 2024 to 2025. This growth in total assets suggests either expansion, acquisitions, or increased investment in assets over the timeframe.
- Total Asset Turnover
- Total asset turnover, which measures efficiency in using assets to generate sales, generally declined over the analyzed years. It started at 2.15 in 2020 and decreased to 1.66 by 2025. Despite some minor fluctuations, such as a slight rebound in 2022 and 2023, the overall pattern indicates diminishing efficiency in asset utilization relative to sales. This could imply that although sales increased, the growth in asset base outpaced sales gains, leading to lower turnover ratios.
- Summary
- Overall, the data reflects growth in net sales and total assets over the six-year period, demonstrating expansion in both revenue and asset base. However, the decreasing trend in total asset turnover ratio suggests a reduction in operational efficiency regarding asset utilization. The company appears to be investing heavily in assets, but the corresponding rise in sales has not proportionally matched this increase, indicating potential areas for improving asset management and operational efficiency.
Equity Turnover
Home Depot Inc., equity turnover calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 159,514) | 152,669) | 157,403) | 151,157) | 132,110) | 110,225) | |
| Stockholders’ equity (deficit) | 6,640) | 1,044) | 1,562) | (1,696) | 3,299) | (3,116) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 24.02 | 146.23 | 100.77 | — | 40.05 | — | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 2.23 | 2.85 | 3.52 | 3.40 | 4.13 | |
| Lowe’s Cos. Inc. | — | — | — | — | 62.35 | 36.59 | |
| TJX Cos. Inc. | 6.72 | 7.42 | 7.85 | 8.09 | 5.51 | 7.01 | |
| Equity Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 3.33 | 4.50 | 5.57 | 4.86 | 6.21 | |
| Equity Turnover, Industry | |||||||
| Consumer Discretionary | — | 3.24 | 3.86 | 4.21 | 3.74 | 4.82 | |
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
Equity turnover = Net sales ÷ Stockholders’ equity (deficit)
= 159,514 ÷ 6,640 = 24.02
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a generally upward trend over the observed periods, increasing from 110,225 million USD in the fiscal year ending February 2, 2020, to 159,514 million USD by February 2, 2025. There was a consistent year-over-year growth except for a slight decrease observed in the fiscal year ending January 28, 2024, where net sales fell from 157,403 million USD in the previous year to 152,669 million USD. Overall, the net sales reflect a strong growth trajectory with minor fluctuations.
- Stockholders’ Equity (Deficit)
- The stockholders' equity values showed considerable volatility throughout the periods. Initially, there was a deficit of 3,116 million USD in 2020, which turned into positive equity of 3,299 million USD in 2021. However, this was followed by a decline to a deficit of 1,696 million USD in 2022. Subsequently, the equity returned to positive but relatively low levels, fluctuating around 1,562 million USD in 2023 and decreasing to 1,044 million USD in 2024, before significantly rising to 6,640 million USD in 2025. This pattern indicates periods of instability with recovery phases eventually leading to a strengthened equity position by the final year.
- Equity Turnover Ratio
- The equity turnover ratio displayed significant fluctuations, with missing data in some years making it difficult to analyze a continuous trend. The available data points show a moderate value of 40.05 in 2021, followed by a substantial increase to 100.77 in 2023 and further peaking at 146.23 in 2024, indicating increased efficiency in utilizing equity to generate sales. Interestingly, there is a sharp decline to 24.02 in 2025. This variability suggests inconsistency in the company’s use of equity to drive sales, with periods of high productivity interspersed with steep declines.