Home Depot Inc (HD)
Return on equity (ROE)
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 15,143,000 | 17,105,000 | 16,433,000 | 12,866,000 | 11,242,000 |
| Total stockholders’ equity | US$ in thousands | 1,044,000 | 1,562,000 | -1,696,000 | 3,299,000 | -3,116,000 |
| ROE | 1,450.48% | 1,095.07% | — | 390.00% | — |
January 28, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $15,143,000K ÷ $1,044,000K
= 1,450.48%
The return on equity (ROE) of Home Depot Inc has shown a significant increase over the past five years. In January 2024, the ROE reached an exceptionally high level of 1,450.48%, demonstrating the company's strong efficiency in generating profits using shareholders' equity. This represents a substantial improvement compared to the ROE of 1,095.07% in January 2023.
While there is no data available for January 2022, the ROE in January 2021 stood at 390.00%, indicating a consistent trend of high returns for shareholders. This suggests that Home Depot has been effectively utilizing its equity to generate profits for investors.
Overall, the increasing trend in ROE signifies that Home Depot Inc has been successful in maximizing shareholder value and maintaining a strong financial performance over the years. It indicates the company's ability to generate earnings from the capital invested by shareholders, reflecting positively on its operational efficiency and financial health.
Peer comparison
Jan 28, 2024