Home Depot Inc (HD)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 14,806,000 | 14,610,000 | 13,763,000 | 13,012,000 | 13,222,000 | 15,080,000 | 16,938,000 | 17,001,000 | 16,553,000 | 15,256,000 | 14,936,000 | 15,402,000 | 17,213,000 | 18,082,000 | 17,974,000 | 16,987,000 | 15,166,000 | 15,064,000 | 15,640,000 | 17,095,000 |
| Total assets | US$ in thousands | 96,119,000 | 97,264,000 | 96,846,000 | 79,230,000 | 76,530,000 | 76,530,000 | 75,577,000 | 75,577,000 | 76,387,000 | 76,387,000 | 76,386,000 | 76,445,000 | 76,445,000 | 76,866,000 | 76,866,000 | 75,825,000 | 76,567,000 | 76,567,000 | 71,876,000 | 71,876,000 |
| 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% |
January 31, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $14,806,000K ÷ $96,119,000K
= 15.40%
Based on the data provided, Home Depot Inc's return on assets (ROA) has experienced fluctuations over the past few years. The ROA ranged from a high of 23.78% on January 30, 2022, to a low of 14.21% on July 31, 2024.
Overall, Home Depot Inc's ROA has shown a general trending decline from the initial high levels, indicating potential challenges in optimizing the utilization of its assets to generate profits. The company's ability to effectively generate profits from its assets seems to have weakened over time, as evidenced by the decreasing trend in ROA figures.
It is important for Home Depot Inc to closely monitor and address the factors contributing to the declining ROA, such as operational inefficiencies, increased competition, or changing market conditions. Implementing strategies to enhance asset productivity and efficiency could help improve the company's profitability and long-term financial performance.
Peer comparison
Jan 31, 2025