Stock analysis on net
Export to Excel Export to OpenOffice.org Print

Home Depot Inc. (HD) | DuPont Analysis: Decomposition of ROE

Decomposing ROE involves expressing net income divided by shareholders' equity as the product of component ratios.


Two-Component Disaggregation of ROE

Home Depot Inc., decomposition of ROE

Export to Excel Export to OpenOffice.org
 
 
 
  ROE = ROA × Leverage
Feb 3, 2013 25.51%   11.04%   2.31
Jan 29, 2012 21.70%   9.58%   2.26
Jan 30, 2011 17.67%   8.32%   2.12
Jan 31, 2010 13.72%   6.51%   2.11
Feb 1, 2009 12.71%   5.49%   2.32
Feb 3, 2008 24.81%   9.92%   2.50

Source: Based on data from Home Depot Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2013 year is the decrease in profitability measured by Return on Assets (ROA).

Top

Three-Component Disaggregation of ROE

Home Depot Inc., decomposition of ROE

Export to Excel Export to OpenOffice.org
 
 
 
 
  ROE = Net Profit Margin × Asset Turnover × Leverage
Feb 3, 2013 25.51%   6.07%   1.82   2.31
Jan 29, 2012 21.70%   5.52%   1.74   2.26
Jan 30, 2011 17.67%   4.91%   1.69   2.12
Jan 31, 2010 13.72%   4.02%   1.62   2.11
Feb 1, 2009 12.71%   3.17%   1.73   2.32
Feb 3, 2008 24.81%   5.68%   1.75   2.50

Source: Based on data from Home Depot Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2013 year is the decrease in profitability measured by Net Profit Margin.

Top

Five-Component Disaggregation of ROE

Home Depot Inc., decomposition of ROE

Export to Excel Export to OpenOffice.org
 
 
 
 
 
 
  ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Leverage
Feb 3, 2013 25.51%   0.63   0.92   10.51%   1.82   2.31
Jan 29, 2012 21.70%   0.64   0.91   9.48%   1.74   2.26
Jan 30, 2011 17.67%   0.63   0.91   8.53%   1.69   2.12
Jan 31, 2010 13.72%   0.66   0.86   7.10%   1.62   2.11
Feb 1, 2009 12.71%   0.64   0.85   5.84%   1.73   2.32
Feb 3, 2008 24.81%   0.65   0.91   9.70%   1.75   2.50

Source: Based on data from Home Depot Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2013 year is the decrease in operating profitability measured by EBIT Margin.

Top

Two-Way Decomposition of ROA

Home Depot Inc., decomposition of ROA

Export to Excel Export to OpenOffice.org
 
 
 
  ROA = Net Profit Margin × Asset Turnover
Feb 3, 2013 11.04%   6.07%   1.82
Jan 29, 2012 9.58%   5.52%   1.74
Jan 30, 2011 8.32%   4.91%   1.69
Jan 31, 2010 6.51%   4.02%   1.62
Feb 1, 2009 5.49%   3.17%   1.73
Feb 3, 2008 9.92%   5.68%   1.75

Source: Based on data from Home Depot Inc. Annual Reports

 

The primary reason for the decrease in Return on Assets (ROA) over 2013 year is the decrease in profitability measured by Net Profit Margin.

Top

Four-Way Decomposition of ROA

Home Depot Inc., decomposition of ROA

Export to Excel Export to OpenOffice.org
 
 
 
 
 
  ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Feb 3, 2013 11.04%   0.63   0.92   10.51%   1.82
Jan 29, 2012 9.58%   0.64   0.91   9.48%   1.74
Jan 30, 2011 8.32%   0.63   0.91   8.53%   1.69
Jan 31, 2010 6.51%   0.66   0.86   7.10%   1.62
Feb 1, 2009 5.49%   0.64   0.85   5.84%   1.73
Feb 3, 2008 9.92%   0.65   0.91   9.70%   1.75

Source: Based on data from Home Depot Inc. Annual Reports

 

The primary reason for the decrease in Return on Assets (ROA) over 2013 year is the decrease in operating profitability measured by EBIT Margin.

Top

Decomposition of Net Profit Margin

Home Depot Inc., decomposition of Net Profit Margin

Export to Excel Export to OpenOffice.org
 
 
 
 
  Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Feb 3, 2013 6.07%   0.63   0.92   10.51%
Jan 29, 2012 5.52%   0.64   0.91   9.48%
Jan 30, 2011 4.91%   0.63   0.91   8.53%
Jan 31, 2010 4.02%   0.66   0.86   7.10%
Feb 1, 2009 3.17%   0.64   0.85   5.84%
Feb 3, 2008 5.68%   0.65   0.91   9.70%

Source: Based on data from Home Depot Inc. Annual Reports

 

The primary reason for the decrease in Net Profit Margin over 2013 year is the decrease in operating profitability measured by EBIT Margin.

Top