Home Depot Inc (HD)

Operating profit margin

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Operating income	US$ in thousands	21,689,000	24,039,000	23,040,000	18,278,000	15,843,000
Revenue	US$ in thousands	152,669,000	157,403,000	151,157,000	132,110,000	110,225,000
Operating profit margin		14.21%	15.27%	15.24%	13.84%	14.37%

January 28, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $21,689,000K ÷ $152,669,000K
= 14.21%

Home Depot Inc's operating profit margin has shown some fluctuations over the past five years. As of January 28, 2024, the operating profit margin stood at 14.21%, slightly lower than the previous year's figure of 15.27%. This decline indicates a decrease in the company's ability to generate profit from its core business operations relative to its sales revenue.

While the operating profit margin for the current year is slightly lower, it remains relatively stable compared to the figures from previous years. The company maintained a range between 13.84% and 15.27% in the last four years, suggesting a consistent level of operational efficiency in managing costs and increasing profitability.

Monitoring and analyzing the trend in operating profit margin can provide insights into Home Depot Inc's financial health and efficiency in managing its operating expenses. This metric is crucial for investors and stakeholders to evaluate the company's profitability and operational effectiveness over time.