Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Home Depot Inc. (NYSE:HD)

Analysis of Property, Plant and Equipment

Advanced level

Property, Plant and Equipment Disclosure

Home Depot Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Land 8,543  8,390  8,363  8,352  8,207  8,149 
Buildings 18,838  18,432  18,199  18,073  17,772  17,667 
Furniture, fixtures and equipment 15,119  13,666  12,460  11,506  11,020  10,279 
Leasehold improvements 1,925  1,789  1,705  1,637  1,519  1,481 
Construction in progress 1,068  1,005  820  538  739  670 
Finance leases 3,308  1,578  1,392  1,308  1,169  1,020 
Property and equipment, at cost 48,801  44,860  42,939  41,414  40,426  39,266 
Accumulated depreciation and finance lease amortization (24,096) (22,090) (20,564) (19,339) (18,512) (17,075)
Net property and equipment 24,705  22,770  22,375  22,075  21,914  22,191 

Based on: 10-K (filing date: 2021-03-24), 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).

Item Description The company
Property and equipment, at cost Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Home Depot Inc.’s property and equipment, at cost increased from 2019 to 2020 and from 2020 to 2021.
Net property and equipment Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Home Depot Inc.’s net property and equipment increased from 2019 to 2020 and from 2020 to 2021.

Asset Age Ratios (Summary)

Home Depot Inc., asset age ratios

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Average age ratio 59.85% 60.57% 59.47% 58.49% 57.46% 54.87%
Estimated total useful life (years) 17 16 17 17 17
Estimated age, time elapsed since purchase (years) 10 10 10 10 10
Estimated remaining life (years) 7 6 7 7 7

Based on: 10-K (filing date: 2021-03-24), 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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Home Depot Inc.’s average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Home Depot Inc.’s estimated total useful life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Home Depot Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Estimated remaining life Home Depot Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Average Age

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation and finance lease amortization 24,096  22,090  20,564  19,339  18,512  17,075 
Property and equipment, at cost 48,801  44,860  42,939  41,414  40,426  39,266 
Land 8,543  8,390  8,363  8,352  8,207  8,149 
Asset Age Ratio
Average age1 59.85% 60.57% 59.47% 58.49% 57.46% 54.87%

Based on: 10-K (filing date: 2021-03-24), 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).

2021 Calculations

1 Average age = 100 × Accumulated depreciation and finance lease amortization ÷ (Property and equipment, at cost – Land)
= 100 × 24,096 ÷ (48,8018,543) = 59.85%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Home Depot Inc.’s average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Property and equipment, at cost 48,801  44,860  42,939  41,414  40,426  39,266 
Land 8,543  8,390  8,363  8,352  8,207  8,149 
Depreciation and finance lease amortization expense 2,425  2,223  2,076  1,983  1,899  — 
Asset Age Ratio (Years)
Estimated total useful life1 17 16 17 17 17

Based on: 10-K (filing date: 2021-03-24), 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).

2021 Calculations

1 Estimated total useful life = (Property and equipment, at cost – Land) ÷ Depreciation and finance lease amortization expense
= (48,8018,543) ÷ 2,425 = 17

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Home Depot Inc.’s estimated total useful life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation and finance lease amortization 24,096  22,090  20,564  19,339  18,512  17,075 
Depreciation and finance lease amortization expense 2,425  2,223  2,076  1,983  1,899  — 
Asset Age Ratio (Years)
Time elapsed since purchase1 10 10 10 10 10

Based on: 10-K (filing date: 2021-03-24), 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).

2021 Calculations

1 Time elapsed since purchase = Accumulated depreciation and finance lease amortization ÷ Depreciation and finance lease amortization expense
= 24,096 ÷ 2,425 = 10

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Home Depot Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Net property and equipment 24,705  22,770  22,375  22,075  21,914  22,191 
Land 8,543  8,390  8,363  8,352  8,207  8,149 
Depreciation and finance lease amortization expense 2,425  2,223  2,076  1,983  1,899  — 
Asset Age Ratio (Years)
Estimated remaining life1 7 6 7 7 7

Based on: 10-K (filing date: 2021-03-24), 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).

2021 Calculations

1 Estimated remaining life = (Net property and equipment – Land) ÷ Depreciation and finance lease amortization expense
= (24,7058,543) ÷ 2,425 = 7

Asset age ratio Description The company
Estimated remaining life Home Depot Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.