Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Home Depot Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Home Depot Inc. gross profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Home Depot Inc. operating profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Home Depot Inc. net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Home Depot Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |
Gross Profit Margin
Home Depot Inc., gross profit margin calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 50,960) | 52,778) | 50,832) | 44,853) | 37,572) | 37,160) | |
| Net sales | 152,669) | 157,403) | 151,157) | 132,110) | 110,225) | 108,203) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 33.38% | 33.53% | 33.63% | 33.95% | 34.09% | 34.34% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 46.98% | 43.81% | 42.03% | 39.57% | 40.99% | |
| Lowe’s Cos. Inc. | 33.39% | 33.23% | 33.30% | 33.01% | 31.80% | 32.12% | |
| TJX Cos. Inc. | 30.00% | 27.61% | 28.50% | 23.66% | 28.46% | 28.59% | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 50,960 ÷ 152,669 = 33.38%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Home Depot Inc. gross profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Operating Profit Margin
Home Depot Inc., operating profit margin calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 21,689) | 24,039) | 23,040) | 18,278) | 15,843) | 15,530) | |
| Net sales | 152,669) | 157,403) | 151,157) | 132,110) | 110,225) | 108,203) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 14.21% | 15.27% | 15.24% | 13.84% | 14.37% | 14.35% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 6.41% | 2.38% | 5.30% | 5.93% | 5.18% | |
| Lowe’s Cos. Inc. | 13.38% | 10.47% | 12.56% | 10.77% | 8.75% | 5.63% | |
| TJX Cos. Inc. | 10.69% | 9.73% | 9.79% | 1.81% | 10.59% | 10.82% | |
| Operating Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 8.63% | 6.44% | 7.38% | 8.11% | 7.68% | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 9.12% | 8.47% | 8.79% | 6.48% | 7.63% | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 21,689 ÷ 152,669 = 14.21%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Home Depot Inc. operating profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Net Profit Margin
Home Depot Inc., net profit margin calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 5.29% | -0.53% | 7.10% | 5.53% | 4.13% | |
| Lowe’s Cos. Inc. | 8.94% | 6.63% | 8.77% | 6.51% | 5.93% | 3.25% | |
| TJX Cos. Inc. | 8.25% | 7.00% | 6.76% | 0.28% | 7.84% | 7.85% | |
| Net Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 6.54% | 3.14% | 7.21% | 6.58% | 5.63% | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 7.92% | 5.15% | 9.20% | 5.24% | 5.92% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Home Depot Inc. net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Return on Equity (ROE)
Home Depot Inc., ROE calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | — | — | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Amazon.com Inc. | — | 15.07% | -1.86% | 24.13% | 22.84% | 18.67% | |
| Lowe’s Cos. Inc. | — | — | — | 406.05% | 217.09% | 63.50% | |
| TJX Cos. Inc. | 61.27% | 54.97% | 54.69% | 1.55% | 55.01% | 60.61% | |
| ROE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 29.39% | 17.48% | 35.05% | 40.86% | 40.77% | |
| ROE, Industry | |||||||
| Consumer Discretionary | — | 30.61% | 21.65% | 34.37% | 25.29% | 34.62% | |
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 Click competitor name to see calculations.
Return on Assets (ROA)
Home Depot Inc., ROA calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Amazon.com Inc. | — | 5.76% | -0.59% | 7.93% | 6.64% | 5.14% | |
| Lowe’s Cos. Inc. | 18.49% | 14.73% | 18.91% | 12.49% | 10.85% | 6.71% | |
| TJX Cos. Inc. | 15.04% | 12.34% | 11.53% | 0.29% | 13.55% | 21.36% | |
| ROA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 8.50% | 4.19% | 9.17% | 9.20% | 8.83% | |
| ROA, Industry | |||||||
| Consumer Discretionary | — | 7.66% | 4.94% | 8.07% | 4.42% | 5.57% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Home Depot Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |