Stock Analysis on Net
Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

Common-Size Income Statement
Quarterly Data

Home Depot Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Aug 2, 2026 May 3, 2026 Feb 1, 2026 Nov 2, 2025 Aug 3, 2025 May 4, 2025 Feb 2, 2025 Oct 27, 2024 Jul 28, 2024 Apr 28, 2024 Jan 28, 2024 Oct 29, 2023 Jul 30, 2023 Apr 30, 2023 Jan 29, 2023 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Jan 30, 2022 Oct 31, 2021 Aug 1, 2021 May 2, 2021 Jan 31, 2021 Nov 1, 2020 Aug 2, 2020 May 3, 2020
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -66.33 -67.00 -67.36 -66.59 -66.59 -66.23 -67.17 -66.62 -66.61 -65.86 -66.92 -66.22 -67.01 -66.30 -66.72 -65.98 -66.93 -66.22 -66.79 -65.88 -66.77 -66.02 -66.43 -65.84 -65.99 -65.94
Gross profit 33.67% 33.00% 32.64% 33.41% 33.41% 33.77% 32.83% 33.38% 33.39% 34.14% 33.08% 33.78% 32.99% 33.70% 33.28% 34.02% 33.07% 33.78% 33.21% 34.12% 33.23% 33.98% 33.57% 34.16% 34.01% 34.06%
Selling, general and administrative -17.60 -19.06 -20.35 -18.47 -17.15 -18.89 -19.46 -17.93 -16.55 -18.31 -19.20 -17.63 -16.11 -17.06 -18.28 -16.64 -15.20 -16.99 -18.00 -16.75 -15.65 -17.00 -19.18 -18.12 -16.70 -20.63
Depreciation and amortization -1.78 -2.01 -2.21 -2.00 -1.78 -2.00 -2.05 -1.98 -1.71 -1.89 -1.97 -1.81 -1.52 -1.75 -1.74 -1.56 -1.41 -1.56 -1.70 -1.63 -1.44 -1.57 -1.74 -1.57 -1.36 -1.84
Operating expenses -19.38% -21.07% -22.56% -20.46% -18.93% -20.89% -21.51% -19.91% -18.26% -20.19% -21.17% -19.44% -17.63% -18.80% -20.02% -18.20% -16.61% -18.55% -19.70% -18.38% -17.09% -18.56% -20.92% -19.69% -18.06% -22.47%
Operating income 14.29% 11.93% 10.08% 12.94% 14.48% 12.88% 11.32% 13.47% 15.13% 13.95% 11.91% 14.34% 15.35% 14.90% 13.26% 15.82% 16.46% 15.24% 13.51% 15.74% 16.15% 15.42% 12.66% 14.47% 15.94% 11.59%
Interest income and other, net 0.12 0.02 0.11 0.08 0.06 0.06 0.08 0.07 0.19 0.16 0.16 0.13 0.10 0.09 0.12 0.02 0.00 0.01 0.05 0.04 0.01 0.02 0.03 0.03 0.02 0.06
Interest expense -1.22 -1.46 -1.56 -1.52 -1.27 -1.54 -1.61 -1.55 -1.33 -1.33 -1.47 -1.29 -1.09 -1.27 -1.26 -1.06 -0.87 -0.96 -0.95 -0.93 -0.79 -0.90 -1.04 -1.01 -0.91 -1.15
Interest and other income (expense), net -1.09% -1.45% -1.44% -1.44% -1.21% -1.48% -1.53% -1.48% -1.13% -1.18% -1.32% -1.16% -1.00% -1.18% -1.14% -1.04% -0.87% -0.95% -0.90% -0.89% -0.78% -0.89% -1.01% -0.98% -0.89% -1.09%
Earnings before provision for income taxes 13.19% 10.48% 8.63% 11.50% 13.26% 11.40% 9.79% 11.99% 14.00% 12.77% 10.59% 13.17% 14.36% 13.72% 12.12% 14.77% 15.60% 14.29% 12.60% 14.85% 15.37% 14.53% 11.64% 13.49% 15.06% 10.51%
Provision for income taxes -3.24 -2.61 -1.90 -2.80 -3.21 -2.78 -2.24 -2.92 -3.44 -2.89 -2.54 -3.07 -3.50 -3.32 -2.74 -3.61 -3.79 -3.42 -3.22 -3.64 -3.67 -3.47 -2.79 -3.25 -3.67 -2.56
Net earnings 9.96% 7.88% 6.73% 8.71% 10.05% 8.61% 7.55% 9.07% 10.56% 9.89% 8.05% 10.10% 10.86% 10.40% 9.38% 11.16% 11.81% 10.87% 9.38% 11.21% 11.69% 11.05% 8.86% 10.23% 11.38% 7.94%

Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03).

An analysis of the common-size income statement reveals a period of relative stability in gross margins contrasted with significant volatility in operating expenses and a gradual compression of net profit margins over the observed timeframe.

Gross Profitability and Cost Management
Cost of sales remained remarkably consistent, generally fluctuating between 65.8% and 67.4% of net sales. Consequently, the gross profit margin stayed within a narrow band, typically ranging from 32.6% to 34.2%. While a slight increase in the cost of sales is observable toward the end of the period, peaking at 67.36% in February 2026, the overall ability to maintain gross margins suggests a stable pricing strategy and consistent procurement costs.
Operating Expense Volatility
Operating expenses, primarily driven by selling, general, and administrative (SG&A) costs, exhibit substantial variance. SG&A expenses fluctuated from lows of 15.2% to highs exceeding 20.3%. This volatility directly impacts operating income, which reached a peak of 16.46% in July 2022 but declined to a low of 10.08% by February 2026. This suggests that operating leverage is highly sensitive to shifts in SG&A spending, which appears to follow a seasonal or cyclical pattern.
Financial Costs and Interest Burden
A gradual upward trend in interest expenses is evident. In the early periods of the analysis, interest expenses typically ranged between 0.8% and 1.1% of net sales. However, in the later periods, specifically from 2024 through 2026, these costs frequently exceeded 1.4%, reaching as high as 1.61% in February 2025. This increase in interest burden has contributed to the erosion of the earnings before provision for income taxes.
Net Earnings Trends
Net earnings as a percentage of net sales show a downward trajectory from their peak. After reaching a high of 11.81% in July 2022, net profit margins entered a period of decline, hitting a minimum of 6.73% in February 2026. Although a recovery to 9.96% is observed by August 2026, the overall trend indicates that the combination of rising interest expenses and fluctuating operating costs has constrained bottom-line profitability compared to the 2020-2022 period.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?