Home Depot Inc (HD)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 21,586,000 | 21,204,000 | 19,954,000 | 18,875,000 | 19,251,000 | 21,738,000 | 24,170,000 | 24,299,000 | 23,639,000 | 21,804,000 | 21,329,000 | 21,900,000 | 24,317,000 | 25,454,000 | 25,231,000 | 23,919,000 | 21,550,000 | 21,428,000 | 22,140,000 | 23,941,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,640,000 | 5,786,000 | 4,420,000 | 1,820,000 | 1,044,000 | 1,044,000 | 1,430,000 | 1,430,000 | 1,335,000 | 1,335,000 | 362,000 | 1,562,000 | 1,562,000 | 1,298,000 | 1,298,000 | 237,000 | -1,709,000 | -1,709,000 | -1,696,000 | -1,696,000 |
| 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% | — | — | — | — |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $21,586,000K ÷ ($—K + $6,640,000K)
= 325.09%
Return on total capital is a key financial ratio that measures a company's ability to generate profits from the capital invested in the business. Looking at Home Depot Inc's return on total capital over the specified time period, we observe significant fluctuations in the ratio.
The ratio was not available for the early dates provided in the data. However, from July 31, 2022, to October 29, 2023, Home Depot Inc showcased impressive returns on total capital, ranging from 1,633.26% to 1,961.02%. These high percentages indicate that the company efficiently utilized its total capital to generate significant profits during this period.
Subsequently, there was a slight dip in the return on total capital from January 28, 2024, to October 31, 2024, with the ratio decreasing to levels between 325.09% and 1,843.97%. This decline suggests a potential decrease in profitability relative to the capital invested during this timeframe.
In conclusion, Home Depot Inc has demonstrated varying levels of return on total capital in the periods analyzed, reflecting fluctuations in the company's profitability and efficiency in capital utilization. Further analysis would be needed to understand the factors driving these changes and their implications for the company's financial performance.
Peer comparison
Jan 31, 2025