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
- Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
- Adjusted Current Ratio
- Adjusted Net Profit Margin
- Adjusted Total Asset Turnover
- Adjusted Financial Leverage
- Adjusted Return on Equity (ROE)
- Adjusted Return on Assets (ROA)
Income Tax Expense (Benefit)
Home Depot Inc., income tax expense (benefit), continuing operations
US$ in millions
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
Item | Description | The company |
---|---|---|
Current | Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. | Home Depot Inc.’s current decreased from 2018 to 2019 and from 2019 to 2020. |
Deferred | Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. | Home Depot Inc.’s deferred decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 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.’s provision for income taxes decreased from 2018 to 2019 but then slightly increased from 2019 to 2020. |
Effective Income Tax Rate (EITR)
Home Depot Inc., effective income tax rate (EITR) reconciliation
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
Item | Description | The company |
---|---|---|
Combined federal, state, and foreign effective tax rates | Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. |
Components of Deferred Tax Assets and Liabilities
Home Depot Inc., components of deferred tax assets and liabilities
US$ in millions
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
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.’s deferred tax assets decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
Deferred tax assets after valuation allowance | Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. | Home Depot Inc.’s deferred tax assets after valuation allowance decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
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.’s net deferred tax assets (liabilities) decreased from 2018 to 2019 and from 2019 to 2020. |
Deferred Tax Assets and Liabilities, Classification
Home Depot Inc., deferred tax assets and liabilities, classification
US$ in millions
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
Item | Description | The company |
---|---|---|
Noncurrent 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.’s noncurrent deferred tax assets (included in Other assets) increased from 2018 to 2019 and from 2019 to 2020. |
Noncurrent 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.’s noncurrent deferred tax liabilities increased from 2018 to 2019 and from 2019 to 2020. |
Adjustments to Financial Statements: Removal of Deferred Taxes
Home Depot Inc., adjustments to financial statements
US$ in millions
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
Home Depot Inc., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Home Depot Inc., adjusted financial ratios
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
Financial ratio | Description | The company |
---|---|---|
Adjusted current ratio | A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. | Home Depot Inc.’s adjusted current ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Adjusted net profit margin | An indicator of profitability, calculated as adjusted net income divided by total revenue. | Home Depot Inc.’s adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020. |
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Home Depot Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Adjusted ROA | A profitability ratio calculated as adjusted net income divided by adjusted total assets. | Home Depot Inc.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Home Depot Inc., Financial Ratios: Reported vs. Adjusted
Adjusted Current Ratio
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
2020 Calculations
1 Current ratio = Current assets ÷ Current liabilities
= 19,810 ÷ 18,375 = 1.08
2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 19,810 ÷ 18,375 = 1.08
Liquidity ratio | Description | The company |
---|---|---|
Adjusted current ratio | A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. | Home Depot Inc.’s adjusted current ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Adjusted Net Profit Margin
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
2020 Calculations
1 Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 11,242 ÷ 110,225 = 10.20%
2 Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 11,433 ÷ 110,225 = 10.37%
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.’s adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020. |
Adjusted Total Asset Turnover
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
2020 Calculations
1 Total asset turnover = Net sales ÷ Total assets
= 110,225 ÷ 51,236 = 2.15
2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 110,225 ÷ 51,097 = 2.16
Activity ratio | Description | The company |
---|---|---|
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Home Depot Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Adjusted Financial Leverage
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
2020 Calculations
1 Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 51,236 ÷ -3,116 = —
2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity (deficit)
= 51,097 ÷ -2,549 = —
Adjusted Return on Equity (ROE)
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
2020 Calculations
1 ROE = 100 × Net earnings ÷ Stockholders’ equity (deficit)
= 100 × 11,242 ÷ -3,116 = —
2 Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted stockholders’ equity (deficit)
= 100 × 11,433 ÷ -2,549 = —
Adjusted Return on Assets (ROA)
Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).
2020 Calculations
1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 11,242 ÷ 51,236 = 21.94%
2 Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 11,433 ÷ 51,097 = 22.38%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROA | A profitability ratio calculated as adjusted net income divided by adjusted total assets. | Home Depot Inc.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |