Home Depot Inc (HD)
Profitability ratios
Return on sales
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 32.99% | 33.05% | 32.97% | 33.05% | 33.44% | 33.40% | 33.36% | 33.34% | 33.22% | 33.30% | 33.58% | 33.67% | 33.59% | 33.70% | 33.65% | 33.46% | 33.51% | 33.59% | 33.44% | 33.44% |
| Operating profit margin | 13.49% | 13.70% | 13.34% | 13.06% | 13.17% | 14.07% | 14.88% | 15.01% | 14.78% | 14.25% | 14.35% | 14.59% | 15.41% | 15.85% | 15.71% | 15.19% | 14.41% | 14.52% | 14.78% | 15.44% |
| Pretax margin | 12.17% | 12.42% | 12.11% | 11.82% | 11.94% | 12.92% | 13.80% | 13.93% | 13.70% | 13.15% | 13.22% | 13.50% | 14.40% | 14.88% | 14.76% | 14.27% | 13.48% | 13.61% | 13.92% | 14.61% |
| Net profit margin | 9.28% | 9.45% | 9.23% | 9.05% | 9.12% | 9.85% | 10.50% | 10.57% | 10.42% | 10.05% | 10.11% | 10.31% | 10.94% | 11.27% | 11.20% | 10.80% | 10.16% | 10.24% | 10.47% | 11.05% |
Home Depot Inc's profitability ratios have shown some fluctuations over the past few years. The gross profit margin has ranged between 32.97% and 33.70%, indicating the company has been able to maintain a relatively stable level of gross profit on its sales.
The operating profit margin, which reflects the company's ability to generate profits from its core operations, has varied between 13.06% and 15.85%. This indicates some volatility in the company's operating efficiency and cost management.
The pretax margin, which shows the percentage of each dollar of revenue that remains after all expenses have been deducted except for taxes, has ranged from 11.82% to 14.88%. This suggests that Home Depot Inc has managed its expenses and costs, relative to its revenue, within this range.
The net profit margin, which represents the percentage of revenue that translates into actual profit for the company after all expenses and taxes have been paid, has fluctuated between 9.05% and 11.27%. This indicates the company's ability to control costs and generate profit has also experienced some variability.
Overall, while Home Depot Inc has shown some fluctuations in its profitability ratios, the company has generally been able to maintain a solid level of profitability over the years. However, the fluctuations in the operating profit and net profit margins may warrant further investigation into the company's cost management strategies and overall efficiency.
Return on investment
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.40% | 21.77% | 20.55% | 23.69% | 24.95% | 28.15% | 31.74% | 31.93% | 30.74% | 28.33% | 27.76% | 28.52% | 31.73% | 33.09% | 32.81% | 31.51% | 28.09% | 27.92% | 30.73% | 33.25% |
| Return on assets (ROA) | 15.40% | 15.02% | 14.21% | 16.42% | 17.28% | 19.70% | 22.41% | 22.49% | 21.67% | 19.97% | 19.55% | 20.15% | 22.52% | 23.52% | 23.38% | 22.40% | 19.81% | 19.67% | 21.76% | 23.78% |
| Return on total capital | 325.09% | 366.47% | 451.45% | 1,037.09% | 1,843.97% | 2,082.18% | 1,690.21% | 1,699.23% | 1,770.71% | 1,633.26% | 5,891.99% | 1,402.05% | 1,556.79% | 1,961.02% | 1,943.84% | 10,092.41% | — | — | — | — |
| Return on equity (ROE) | 222.98% | 252.51% | 311.38% | 714.95% | 1,266.48% | 1,444.44% | 1,184.48% | 1,188.88% | 1,239.93% | 1,142.77% | 4,125.97% | 986.04% | 1,101.98% | 1,393.07% | 1,384.75% | 7,167.51% | — | — | — | — |
Based on the provided data, let's analyze the profitability ratios of Home Depot Inc:
1. Operating Return on Assets (Operating ROA): This ratio measures the operating income generated per dollar of assets. Home Depot Inc's Operating ROA varied over the periods, ranging from 20.55% to 33.25%. The company's ability to generate operating income from its assets was relatively high, with an average Operating ROA of around 29.48% over the periods.
2. Return on Assets (ROA): ROA indicates the overall profitability of the company in generating profits from its total assets. Home Depot Inc's ROA fluctuated between 14.21% and 23.78% during the periods under review, averaging about 19.78%. This shows that the company was able to generate consistent profits relative to its total assets.
3. Return on Total Capital: This ratio measures the return generated from all forms of capital, including debt and equity. Home Depot Inc's Return on Total Capital showed significant fluctuations, from 325.09% to 10,092.41%. This variability may be due to the changing capital structure of the company over time.
4. Return on Equity (ROE): ROE indicates the return generated for shareholders from their equity investment. Home Depot Inc's ROE ranged from 222.98% to 7,167.51% over the periods, with an average of approximately 1,574.05%. The company's ability to generate returns for its shareholders was relatively strong, although it also exhibited significant variability.
In conclusion, Home Depot Inc demonstrated strong profitability, as indicated by its robust Operating ROA, ROA, Return on Total Capital, and ROE ratios. However, the company experienced fluctuations in these ratios over the periods, which could be attributed to various factors impacting its operations and capital structure. Overall, Home Depot Inc's profitability ratios reflect a solid performance in generating profits and returns for its stakeholders.