Home Depot Inc (HD)
Pretax margin
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 19,924,000 | 20,583,000 | 21,357,000 | 22,027,000 | 22,477,000 | 22,635,000 | 22,362,000 | 21,849,000 | 21,737,000 | 20,991,000 | 20,045,000 | 19,457,000 | 16,978,000 | 16,333,000 | 15,477,000 | 14,360,000 | 14,715,000 | 14,717,000 | 14,696,000 | 14,738,000 |
| Revenue (ttm) | US$ in thousands | 152,669,000 | 153,714,000 | 154,876,000 | 155,752,000 | 157,403,000 | 157,291,000 | 155,239,000 | 152,565,000 | 151,157,000 | 147,699,000 | 144,415,000 | 141,350,000 | 132,110,000 | 125,631,000 | 119,318,000 | 112,104,000 | 110,225,000 | 110,934,000 | 110,013,000 | 109,637,000 |
| Pretax margin | 13.05% | 13.39% | 13.79% | 14.14% | 14.28% | 14.39% | 14.40% | 14.32% | 14.38% | 14.21% | 13.88% | 13.77% | 12.85% | 13.00% | 12.97% | 12.81% | 13.35% | 13.27% | 13.36% | 13.44% |
January 28, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $19,924,000K ÷ $152,669,000K
= 13.05%
The pretax margin of Home Depot Inc has shown some fluctuations over the past 20 reporting periods. It ranged from a low of 12.81% to a high of 14.40%. The average pretax margin during this period was approximately 13.83%.
The pretax margin measures the proportion of earnings that the company retains after accounting for all operating expenses but before taxes are deducted. A higher pretax margin indicates that the company is generating more profits from its operations relative to its total revenue.
Overall, Home Depot Inc has maintained a relatively stable pretax margin, hovering around the 13% to 14% range. This stability suggests that the company has been effective in managing its operating expenses and generating profits from its core operations.
Investors and analysts typically view a consistent and healthy pretax margin as a positive sign of operational efficiency and profitability. However, it is important to continue monitoring this ratio in conjunction with other financial metrics to assess the overall financial health and performance of the company.
Peer comparison
Jan 28, 2024