Home Depot Inc (HD)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | 21,867,000 | 22,464,000 | 23,164,000 | 23,746,000 | 24,094,000 | 24,142,000 | 23,797,000 | 23,229,000 | 23,084,000 | 22,334,000 | 21,387,000 | 20,819,000 | 18,325,000 | 17,652,000 | 16,758,000 | 15,597,000 | 15,916,000 | 15,878,000 | 15,804,000 | 15,816,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,044,000 | 1,430,000 | 1,335,000 | 362,000 | 1,562,000 | 1,298,000 | 237,000 | -1,709,000 | -1,696,000 | 1,035,000 | 2,069,000 | 1,748,000 | 3,299,000 | 1,535,000 | -414,000 | -3,490,000 | -3,116,000 | -1,082,000 | -1,160,000 | -2,143,000 |
| Return on total capital | 2,094.54% | 1,570.91% | 1,735.13% | 6,559.67% | 1,542.51% | 1,859.94% | 10,040.93% | — | — | 2,157.87% | 1,033.69% | 1,191.02% | 555.47% | 1,149.97% | — | — | — | — | — | — |
January 28, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $21,867,000K ÷ ($—K + $1,044,000K)
= 2,094.54%
Return on total capital is a key financial ratio that measures a company's ability to generate returns for both its debt and equity holders. Home Depot Inc's return on total capital has shown significant fluctuations over the periods provided in the table.
The highest return on total capital was recorded at an impressive 10,040.93% in July 2022, indicating a strong performance in utilizing its total capital resources efficiently to generate profits. However, in some periods, the return on total capital was not reported, indicating a possible lack of data or irregular reporting.
Overall, Home Depot Inc's return on total capital has generally been high, with peaks and troughs noted across the periods. This ratio reflects the company's effectiveness in generating profits from the total capital invested in the business and highlights its ability to maximize shareholder value over time. An upward trend in this ratio suggests efficient capital allocation and strong financial performance.
Peer comparison
Jan 28, 2024