Home Depot Inc (HD)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 21,526,000 | 21,689,000 | 21,689,000 | 24,039,000 | 24,039,000 |
| Total assets | US$ in thousands | 96,119,000 | 76,530,000 | 76,530,000 | 76,445,000 | 76,445,000 |
| Operating ROA | 22.40% | 28.34% | 28.34% | 31.45% | 31.45% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $21,526,000K ÷ $96,119,000K
= 22.40%
Home Depot Inc's operating return on assets (operating ROA) has shown a declining trend in recent years. As of January 29, 2023, and January 31, 2023, the operating ROA was 31.45%, indicating a strong performance in utilizing its assets to generate operating profits. However, by January 28, 2024, and January 31, 2024, the operating ROA decreased to 28.34%, suggesting a slight decline in the efficiency of asset utilization.
The most recent data point, as of January 31, 2025, shows a further decrease in the operating ROA to 22.40%. This decline may indicate potential challenges in effectively generating operating profits relative to the level of assets employed by the company. It is essential for Home Depot Inc to closely monitor its asset utilization and efficiency to maintain or improve its operating ROA in the future.
Peer comparison
Jan 31, 2025