Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Home Depot Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Goodwill	8,455)	7,444)	7,449)	7,126)	2,254)	2,252)
Customer relationships	3,425)	3,034)	3,034)	2,965)	—)	—)
Trade names	227)	151)	151)	151)	—)	—)
Other	12)	12)	12)	16)	—)	—)
Definite-lived intangible assets, gross carrying amount	3,664)	3,197)	3,197)	3,132)	—)	—)
Accumulated amortization	(707)	(523)	(343)	(169)	—)	—)
Definite-lived intangible assets, net carrying amount	2,957)	2,674)	2,854)	2,963)	—)	—)
Trade names	649)	649)	649)	649)	—)	—)
Indefinite-lived intangible assets	649)	649)	649)	649)	—)	—)
Intangible assets	3,606)	3,323)	3,503)	3,612)	—)	—)
Goodwill and other intangible assets	12,061)	10,767)	10,952)	10,738)	2,254)	2,252)

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).

Download chart

Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Home Depot Inc. goodwill decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Home Depot Inc. intangible assets decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Home Depot Inc. goodwill and other intangible assets decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

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: Goodwill	8,455)	7,444)	7,449)	7,126)	2,254)	2,252)
Total assets (adjusted)	68,075)	69,001)	64,427)	63,455)	48,982)	41,751)
Adjustment to Stockholders’ Equity (deficit)
Stockholders’ equity (deficit) (as reported)	1,044)	1,562)	(1,696)	3,299)	(3,116)	(1,878)
Less: Goodwill	8,455)	7,444)	7,449)	7,126)	2,254)	2,252)
Stockholders’ equity (deficit) (adjusted)	(7,411)	(5,882)	(9,145)	(3,827)	(5,370)	(4,130)

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

Download chart

Home Depot Inc., adjusted financial ratios

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Total Asset Turnover
Reported total asset turnover	1.99	2.06	2.10	1.87	2.15	2.46
Adjusted total asset turnover	2.24	2.28	2.35	2.08	2.25	2.59
Financial Leverage
Reported financial leverage	73.30	48.94	—	21.39	—	—
Adjusted financial leverage	—	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	1,450.48%	1,095.07%	—	390.00%	—	—
Adjusted ROE	—	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	19.79%	22.38%	22.86%	18.23%	21.94%	25.27%
Adjusted ROA	22.24%	24.79%	25.51%	20.28%	22.95%	26.64%

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 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 net income divided by adjusted total assets.	Home Depot Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

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

Download chart

	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 Goodwill
Selected Financial Data (US$ in millions)
Net sales	152,669)	157,403)	151,157)	132,110)	110,225)	108,203)
Adjusted total assets	68,075)	69,001)	64,427)	63,455)	48,982)	41,751)
Activity Ratio
Adjusted total asset turnover²	2.24	2.28	2.35	2.08	2.25	2.59

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 ÷ 68,075 = 2.24

Download chart

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 Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	68,075)	69,001)	64,427)	63,455)	48,982)	41,751)
Adjusted stockholders’ equity (deficit)	(7,411)	(5,882)	(9,145)	(3,827)	(5,370)	(4,130)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—	—

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)
= 68,075 ÷ -7,411 = —

Download chart

	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 Goodwill
Selected Financial Data (US$ in millions)
Net earnings	15,143)	17,105)	16,433)	12,866)	11,242)	11,121)
Adjusted stockholders’ equity (deficit)	(7,411)	(5,882)	(9,145)	(3,827)	(5,370)	(4,130)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—	—

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 × Net earnings ÷ Adjusted stockholders’ equity (deficit)
= 100 × 15,143 ÷ -7,411 = —

Download chart

	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 Goodwill
Selected Financial Data (US$ in millions)
Net earnings	15,143)	17,105)	16,433)	12,866)	11,242)	11,121)
Adjusted total assets	68,075)	69,001)	64,427)	63,455)	48,982)	41,751)
Profitability Ratio
Adjusted ROA²	22.24%	24.79%	25.51%	20.28%	22.95%	26.64%

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 × Net earnings ÷ Adjusted total assets
= 100 × 15,143 ÷ 68,075 = 22.24%

Download chart

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

Home Depot Inc. (NYSE:HD)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

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

Adjusted Financial Ratios: Removal of Goodwill (Summary)

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

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)