Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Home Depot Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Federal	3,764)	3,918)	4,066)	3,462)	2,370)	2,495)
State	882)	880)	981)	928)	572)	544)
Foreign	365)	436)	511)	329)	340)	372)
Current	5,011)	5,234)	5,558)	4,719)	3,282)	3,411)
Federal	(228)	102)	(155)	(404)	259)	67)
State	12)	61)	(11)	(209)	(72)	1)
Foreign	(14)	(25)	(88)	6)	4)	(44)
Deferred	(230)	138)	(254)	(607)	191)	24)
Provision for income taxes	4,781)	5,372)	5,304)	4,112)	3,473)	3,435)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Home Depot Inc. current decreased from 2022 to 2023 and from 2023 to 2024.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Home Depot Inc. deferred increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Home Depot Inc. provision for income taxes increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Home Depot Inc., effective income tax rate (EITR) reconciliation

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
	Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
	Combined federal, state, and foreign effective tax rate	24.00%	23.90%	24.40%	24.20%	23.60%	23.60%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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Item	Description	The company
Combined federal, state, and foreign effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Home Depot Inc. combined federal, state, and foreign effective tax rate decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Home Depot Inc., components of deferred tax assets and liabilities

US$ in millions

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Deferred compensation	237)	236)	471)	472)	169)	183)
Accrued self-insurance liabilities	258)	276)	272)	291)	285)	298)
State income taxes	209)	149)	138)	117)	100)	96)
Merchandise inventories	110)	30)	—)	41)	—)	—)
Non-deductible reserves	474)	318)	250)	199)	156)	231)
Net operating losses	99)	115)	150)	144)	70)	17)
Lease liabilities	2,034)	1,879)	1,528)	1,605)	1,536)	—)
Deferred revenue	191)	148)	121)	51)	—)	—)
Other	46)	56)	67)	104)	135)	116)
Deferred tax assets	3,658)	3,207)	2,997)	3,024)	2,451)	941)
Valuation allowance	(67)	(5)	(10)	(8)	—)	—)
Deferred tax assets, net of valuation allowance	3,591)	3,202)	2,987)	3,016)	2,451)	941)
Merchandise inventories	—)	—)	(14)	—)	(26)	(9)
Property and equipment	(988)	(992)	(902)	(1,061)	(1,107)	(893)
Goodwill and other intangibles	(1,000)	(953)	(985)	(1,030)	(195)	(179)
Lease right-of-use assets	(1,956)	(1,799)	(1,473)	(1,555)	(1,458)	—)
Tax on unremitted earnings	(53)	(63)	(74)	(119)	—)	—)
Other	(144)	(95)	(104)	(77)	(232)	(230)
Deferred tax liabilities	(4,141)	(3,902)	(3,552)	(3,842)	(3,018)	(1,311)
Net deferred tax assets (liabilities)	(550)	(700)	(565)	(826)	(567)	(370)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Home Depot Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets, net of valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Home Depot Inc. deferred tax assets, net of valuation allowance increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Home Depot Inc. net deferred tax assets (liabilities) decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Home Depot Inc., deferred tax assets and liabilities, classification

US$ in millions

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
	Deferred tax assets (included in Other assets)	313)	319)	344)	305)	139)	121)
	Deferred tax liabilities	863)	1,019)	909)	1,131)	706)	491)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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Item	Description	The company
Deferred tax assets (included in Other assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Home Depot Inc. deferred tax assets (included in Other assets) decreased from 2022 to 2023 and from 2023 to 2024.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Home Depot Inc. deferred tax liabilities increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Home Depot Inc., adjustments to financial statements

US$ in millions

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Adjustment to Total Assets
Total assets (as reported)	76,530)	76,445)	71,876)	70,581)	51,236)	44,003)
Less: Noncurrent deferred tax assets, net	313)	319)	344)	305)	139)	121)
Total assets (adjusted)	76,217)	76,126)	71,532)	70,276)	51,097)	43,882)
Adjustment to Total Liabilities
Total liabilities (as reported)	75,486)	74,883)	73,572)	67,282)	54,352)	45,881)
Less: Noncurrent deferred tax liabilities, net	863)	1,019)	909)	1,131)	706)	491)
Total liabilities (adjusted)	74,623)	73,864)	72,663)	66,151)	53,646)	45,390)
Adjustment to Stockholders’ Equity (deficit)
Stockholders’ equity (deficit) (as reported)	1,044)	1,562)	(1,696)	3,299)	(3,116)	(1,878)
Less: Net deferred tax assets (liabilities)	(550)	(700)	(565)	(826)	(567)	(370)
Stockholders’ equity (deficit) (adjusted)	1,594)	2,262)	(1,131)	4,125)	(2,549)	(1,508)
Adjustment to Net Earnings
Net earnings (as reported)	15,143)	17,105)	16,433)	12,866)	11,242)	11,121)
Add: Deferred income tax expense (benefit)	(230)	138)	(254)	(607)	191)	24)
Net earnings (adjusted)	14,913)	17,243)	16,179)	12,259)	11,433)	11,145)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

Home Depot Inc., Financial Data: Reported vs. Adjusted

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Home Depot Inc., adjusted financial ratios

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Net Profit Margin
Reported net profit margin	9.92%	10.87%	10.87%	9.74%	10.20%	10.28%
Adjusted net profit margin	9.77%	10.95%	10.70%	9.28%	10.37%	10.30%
Total Asset Turnover
Reported total asset turnover	1.99	2.06	2.10	1.87	2.15	2.46
Adjusted total asset turnover	2.00	2.07	2.11	1.88	2.16	2.47
Financial Leverage
Reported financial leverage	73.30	48.94	—	21.39	—	—
Adjusted financial leverage	47.81	33.65	—	17.04	—	—
Return on Equity (ROE)
Reported ROE	1,450.48%	1,095.07%	—	390.00%	—	—
Adjusted ROE	935.57%	762.29%	—	297.19%	—	—
Return on Assets (ROA)
Reported ROA	19.79%	22.38%	22.86%	18.23%	21.94%	25.27%
Adjusted ROA	19.57%	22.65%	22.62%	17.44%	22.38%	25.40%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Home Depot Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Home Depot Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Home Depot Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Home Depot Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	15,143)	17,105)	16,433)	12,866)	11,242)	11,121)
Net sales	152,669)	157,403)	151,157)	132,110)	110,225)	108,203)
Profitability Ratio
Net profit margin¹	9.92%	10.87%	10.87%	9.74%	10.20%	10.28%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	14,913)	17,243)	16,179)	12,259)	11,433)	11,145)
Net sales	152,669)	157,403)	151,157)	132,110)	110,225)	108,203)
Profitability Ratio
Adjusted net profit margin²	9.77%	10.95%	10.70%	9.28%	10.37%	10.30%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 15,143 ÷ 152,669 = 9.92%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 14,913 ÷ 152,669 = 9.77%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Home Depot Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	152,669)	157,403)	151,157)	132,110)	110,225)	108,203)
Total assets	76,530)	76,445)	71,876)	70,581)	51,236)	44,003)
Activity Ratio
Total asset turnover¹	1.99	2.06	2.10	1.87	2.15	2.46
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	152,669)	157,403)	151,157)	132,110)	110,225)	108,203)
Adjusted total assets	76,217)	76,126)	71,532)	70,276)	51,097)	43,882)
Activity Ratio
Adjusted total asset turnover²	2.00	2.07	2.11	1.88	2.16	2.47

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 152,669 ÷ 76,530 = 1.99

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 152,669 ÷ 76,217 = 2.00

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Home Depot Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	76,530)	76,445)	71,876)	70,581)	51,236)	44,003)
Stockholders’ equity (deficit)	1,044)	1,562)	(1,696)	3,299)	(3,116)	(1,878)
Solvency Ratio
Financial leverage¹	73.30	48.94	—	21.39	—	—
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	76,217)	76,126)	71,532)	70,276)	51,097)	43,882)
Adjusted stockholders’ equity (deficit)	1,594)	2,262)	(1,131)	4,125)	(2,549)	(1,508)
Solvency Ratio
Adjusted financial leverage²	47.81	33.65	—	17.04	—	—

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 76,530 ÷ 1,044 = 73.30

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity (deficit)
= 76,217 ÷ 1,594 = 47.81

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	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	15,143)	17,105)	16,433)	12,866)	11,242)	11,121)
Stockholders’ equity (deficit)	1,044)	1,562)	(1,696)	3,299)	(3,116)	(1,878)
Profitability Ratio
ROE¹	1,450.48%	1,095.07%	—	390.00%	—	—
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	14,913)	17,243)	16,179)	12,259)	11,433)	11,145)
Adjusted stockholders’ equity (deficit)	1,594)	2,262)	(1,131)	4,125)	(2,549)	(1,508)
Profitability Ratio
Adjusted ROE²	935.57%	762.29%	—	297.19%	—	—

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ ROE = 100 × Net earnings ÷ Stockholders’ equity (deficit)
= 100 × 15,143 ÷ 1,044 = 1,450.48%

² Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted stockholders’ equity (deficit)
= 100 × 14,913 ÷ 1,594 = 935.57%

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	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	15,143)	17,105)	16,433)	12,866)	11,242)	11,121)
Total assets	76,530)	76,445)	71,876)	70,581)	51,236)	44,003)
Profitability Ratio
ROA¹	19.79%	22.38%	22.86%	18.23%	21.94%	25.27%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	14,913)	17,243)	16,179)	12,259)	11,433)	11,145)
Adjusted total assets	76,217)	76,126)	71,532)	70,276)	51,097)	43,882)
Profitability Ratio
Adjusted ROA²	19.57%	22.65%	22.62%	17.44%	22.38%	25.40%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 15,143 ÷ 76,530 = 19.79%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 14,913 ÷ 76,217 = 19.57%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Home Depot Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Home Depot Inc. (NYSE:HD)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Home Depot Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Home Depot Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)