Common-Size Income Statement
Quarterly Data
Home Depot Inc., common-size consolidated income statement (quarterly data)
Based on: 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), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05).
- Cost of Sales
- The cost of sales consistently accounted for approximately 66% of net sales across the analyzed quarters, with minor fluctuations. It exhibits a generally stable pattern, with occasional slight increases and decreases but maintaining a tight range between approximately -65.5% and -67.2%. This stability suggests consistent cost management relative to sales revenue.
- Gross Profit
- Gross profit as a percentage of net sales fluctuates inversely to the cost of sales, averaging around 33% to 34%. While there is minor variability quarter to quarter, gross profit margins remain relatively stable throughout the periods, indicating that the company maintains a consistent markup on its sales despite market or operational changes.
- Selling, General and Administrative Expenses (SG&A)
- SG&A expenses as a percentage of net sales vary more noticeably than cost of sales, ranging approximately from -15.2% to -20.6%. The data indicates increased variability with some quarters showing lower SG&A ratios, potentially reflecting cost controls or efficiency improvements, while other quarters see increased expenses possibly due to strategic investments or increased operational costs.
- Depreciation and Amortization
- Depreciation and amortization expenses remain relatively stable, ranging roughly between -1.36% and -2.05% of net sales. Slight fluctuations may reflect changes in capital investments or asset aging but show no dramatic trend in either direction.
- Operating Expenses
- Operating expenses, combining SG&A and depreciation/amortization, correspondingly fluctuate between roughly -16.6% and -22.5% of net sales. Notable peaks align with increased SG&A expenses, indicating that administrative and operating cost management is a key driver of overall operating expenses. Despite variability, operating expenses maintain a consistent proportion of sales over time.
- Operating Income
- Operating income as a percentage of net sales shows modest volatility, generally ranging from about 11.3% to 16.5%. Peaks in operating income coincide with quarters of lower operating expenses, demonstrating that expense management significantly impacts profitability. Periods with higher operating income correspond to relatively favorable cost structures and stable gross profit margins.
- Interest Income and Expense
- Interest income is minimal and stable at near zero, representing a very small positive impact on net sales. Interest expense varies more, generally between -0.79% and -1.61% of net sales, with some increases over time. The net effect of interest and other income/expense remains consistently negative and typically around -1% of net sales, indicating a relatively steady cost of financing.
- Earnings Before Income Taxes
- This metric experiences fluctuations akin to operating income, generally ranging between 9.8% and 15.6% of net sales. Higher earnings before tax coincide with quarters exhibiting stronger operating income and modest interest expenses, signifying consistent profitability prior to taxation.
- Provision for Income Taxes
- Tax provisions as a percentage of net sales vary moderately, positioned between roughly -2.2% and -3.8%. The relative stability in tax rates indicates predictable tax impacts on earnings, although some quarters suggest slightly lower effective tax rates, which could be due to tax planning or one-time adjustments.
- Net Earnings
- Net earnings margins fluctuate between approximately 7.5% and 11.8% of net sales. Peaks in net earnings correspond to quarters with stronger operating income and controlled expenses. The lowest margins are observed when operating income declines and cost pressures increase. Overall, profitability remains positive and fairly consistent, with margins reflecting the balance of cost control, sales performance, and interest expense management.
- Summary of Trends
- The financial data shows Home Depot Inc. maintains relatively stable cost structures and profitability ratios over the observed periods. Cost of sales and gross profit percentages demonstrate tight control and stability, while SG&A and operating expenses show more variability, reflecting operational adjustments. Operating income and earnings before taxes track closely with this variability but generally remain robust. Interest expenses have a moderate negative effect but remain consistent. Income tax provisions show predictable patterns. The company's net earnings reflect a stable, positive profitability trend, with periodic fluctuations likely influenced by changes in operating expenses and cost management strategies.