Home Depot Inc. (NYSE:HD)

Total assets and adjusted total assets exhibited similar trends over the observed period, generally increasing from 2021 to 2026. However, the magnitude of change varied, and a notable divergence appears in the later years. Initial increases were moderate, followed by a substantial jump between 2023 and 2025, and continuing into 2026.

Overall Growth

From January 31, 2021, to February 1, 2026, total assets increased from US$70,581 million to US$105,095 million, representing a growth of approximately 48.8%. Adjusted total assets followed a similar pattern, growing from US$70,276 million to US$104,803 million, a growth of roughly 49.2% over the same period.

Year-over-Year Changes

The period between 2021 and 2022 saw modest growth in both total and adjusted assets, with increases of approximately 1.8% and 1.6%, respectively. Growth accelerated between 2022 and 2023, with total assets increasing by 6.4% and adjusted total assets by 6.2%. The increase from 2023 to 2024 was minimal, at 0.1% for both metrics. A significant surge occurred between 2024 and 2025, with total assets increasing by 25.8% and adjusted total assets by 25.5%. This substantial growth continued into 2025-2026, with increases of 9.3% for total assets and 9.1% for adjusted total assets.

Difference Between Metrics

The difference between total assets and adjusted total assets remained relatively consistent between 2021 and 2024, fluctuating between approximately US$305 million and US$319 million. However, the gap widened in 2025 to US$269 million and further to US$292 million in 2026, suggesting that the adjustments made to total assets are becoming more substantial in absolute terms as the overall asset base grows.

The consistent pattern of growth in both metrics suggests a general expansion of the company’s asset base. The accelerated growth observed from 2024 onwards warrants further investigation to understand the underlying drivers, such as acquisitions, significant capital investments, or changes in accounting practices. The increasing difference between total and adjusted assets also merits attention, as it indicates a growing impact from the specific adjustments being applied.

Current liabilities exhibited volatility over the observed period. Initial values increased significantly between January 31, 2021, and January 30, 2022, followed by a substantial decrease in the subsequent year. This pattern continued with a further decrease through January 28, 2024, before increasing again in the following two years.

Overall Trend in Current Liabilities

The period began with current liabilities at US$23,166 million. A peak of US$28,693 million was reached in 2022, representing a significant increase. This was followed by a decline to US$22,015 million by 2024. The most recent two years show a renewed upward trend, reaching US$32,424 million in 2026.

Adjusted Current Liabilities Trend

Adjusted current liabilities mirrored the trend of total current liabilities, though the absolute values were consistently lower. An increase from US$20,343 million in 2021 to US$25,097 million in 2022 was observed, followed by a decrease to US$19,253 million in 2024. Similar to the overall current liabilities, adjusted current liabilities increased to US$29,849 million by 2026.

Relationship Between Current and Adjusted Liabilities

The difference between current liabilities and adjusted current liabilities remained relatively consistent throughout the period, suggesting a systematic adjustment being applied. The adjustments reduced the reported current liabilities by approximately US$2.8 to US$3.6 billion annually. This indicates the presence of items being reclassified or otherwise adjusted out of the current liability balance.

The fluctuations in both current and adjusted current liabilities suggest potential changes in short-term financing strategies, accounts payable management, or the timing of accruals. The consistent application of adjustments implies a deliberate accounting practice aimed at presenting a refined view of the company’s immediate obligations.

Total liabilities and adjusted total liabilities for the analyzed period demonstrate a general upward trend, though the rate of increase varies. A notable divergence between the two figures is consistently present, suggesting adjustments are systematically reducing the reported liability value.

Overall Trend

Both total liabilities and adjusted total liabilities increased over the six-year period. Total liabilities grew from US$67,282 million in 2021 to US$92,282 million in 2026, representing an overall increase of approximately 37.2%. Adjusted total liabilities exhibited a similar pattern, rising from US$63,328 million to US$86,862 million, a growth of roughly 37.1%.

Growth Rate Analysis

The growth in total liabilities was most pronounced between 2024 and 2025, with an increase of US$13,993 million, or approximately 18.5%. The adjusted total liabilities also experienced its largest single-year increase during this period, adding US$13,046 million, or 18.2%. Prior to 2025, the year-over-year growth rates for both metrics were more moderate, generally ranging between 5% and 10%.

Adjustment Impact

The difference between total liabilities and adjusted total liabilities remained relatively consistent throughout the period, typically ranging between US$3,954 million and US$4,575 million. This indicates a consistent application of adjustments that reduce the reported liability position. The adjustments represent approximately 5.9% to 6.2% of total liabilities each year.

Recent Period Observations

The increase in both total and adjusted liabilities appears to accelerate in the later years of the period. The growth from 2025 to 2026 is substantial, suggesting a potential shift in financing strategies or increased operational obligations. Further investigation into the nature of these adjustments would be beneficial to understand their underlying causes and potential implications.

In summary, the observed trends suggest a steady increase in liabilities, coupled with consistent adjustments that lower the reported value. The accelerating growth in the most recent years warrants further scrutiny.

Stockholders’ equity exhibited significant volatility over the observed period. Initially reported at US$3,299 million as of January 31, 2021, it experienced a substantial decrease, resulting in a deficit of US$1,696 million by January 30, 2022. A recovery commenced in subsequent years, with equity increasing to US$1,562 million by January 29, 2023, and further to US$1,044 million by January 28, 2024. The most recent periods demonstrate accelerated growth, reaching US$6,640 million as of February 2, 2025, and culminating in US$12,813 million by February 1, 2026.

Reported vs. Adjusted Equity

A comparison of reported and adjusted stockholders’ equity reveals consistent differences throughout the period. The adjusted equity values are consistently higher than the reported values. In 2021, the adjusted equity was more than double the reported equity, at US$6,948 million versus US$3,299 million. This pattern continues through 2026, with adjusted equity reaching US$17,941 million compared to US$12,813 million in reported equity. The magnitude of the adjustment appears to be increasing over time.

The adjusted stockholders’ equity followed a similar, though less dramatic, pattern of initial decline and subsequent recovery. Starting at US$6,948 million in 2021, it decreased to US$2,465 million in 2022 before steadily increasing to US$5,326 million in 2023 and US$4,356 million in 2024. The growth rate of adjusted equity accelerated in the final two years, reaching US$10,943 million in 2025 and US$17,941 million in 2026. The consistent positive values in adjusted equity, even during the period of reported negative equity, suggest the presence of adjustments that offset the reported deficit.

Growth Trends

From 2021 to 2022, both reported and adjusted equity experienced declines. However, from 2022 onward, both metrics demonstrate positive growth. The rate of growth appears to be increasing, particularly in the later years of the period. The growth from 2024 to 2025 is notably larger than the growth from 2023 to 2024 for both reported and adjusted equity.

The substantial difference between reported and adjusted stockholders’ equity warrants further investigation to understand the nature and impact of the adjustments being made. The increasing magnitude of these adjustments over time also suggests a potential shift in accounting practices or the recognition of previously unrealized gains or assets.

Over the observed six-year period, significant shifts are evident in the reported and adjusted capitalization structure. Total reported debt consistently increased from 2021 to 2026, while stockholders’ equity experienced considerable volatility before demonstrating substantial growth in later years. The adjusted figures reveal a different magnitude of these trends, suggesting the impact of specific adjustments to debt and equity calculations.

Total Capitalization Trends

Total reported capital exhibited a slight decrease between 2021 and 2022, followed by a recovery and continued growth through 2026. However, adjusted total capital shows a more pronounced increase throughout the period, consistently exceeding the reported total capital. This indicates that the adjustments made to debt and equity collectively increase the overall capital base as perceived through the adjusted figures.

Debt Analysis

Total reported debt increased steadily from US$37,238 million in 2021 to US$55,772 million in 2026, representing a roughly 50% increase. The adjusted total debt figures are higher than the reported debt in each year, and also demonstrate a similar upward trajectory, rising from US$43,422 million to US$65,350 million. The difference between reported and adjusted debt widens over time, suggesting the adjustments related to debt become more substantial.

Stockholders’ Equity Analysis

Stockholders’ equity initially experienced a significant decline from 2021 to 2022, moving from a positive US$3,299 million to a deficit of US$1,696 million. It then recovered, becoming positive in 2023 and continuing to grow substantially through 2026, reaching US$12,813 million. The adjusted stockholders’ equity mirrors this trend but consistently reports higher values than the reported equity. The adjusted equity also demonstrates a more rapid growth rate in the later years of the period, reaching US$17,941 million in 2026.

Capital Structure Shifts

The ratio of debt to equity, both reported and adjusted, reveals a changing capital structure. While initially, equity represented a smaller portion of the capital base, the substantial growth in adjusted equity, particularly in 2025 and 2026, suggests a shift towards a more equity-financed structure. The adjustments consistently present a capital structure with a higher equity component compared to the reported figures.

In summary, the capitalization structure demonstrates increasing debt levels and a volatile, but ultimately growing, equity position. The adjustments to both debt and equity significantly impact the overall capital base and the perceived capital structure, indicating the importance of understanding the nature of these adjustments for a comprehensive financial assessment.

Net sales and adjusted net sales for the period exhibited generally positive trends, though with some fluctuation. Initial growth was followed by a slight contraction and subsequent recovery. A consistent pattern emerges where adjusted net sales consistently exceed reported net sales.

Overall Trend

From January 31, 2021, to February 1, 2026, both net sales and adjusted net sales generally increased. Net sales grew from US$132,110 million to US$164,683 million, representing an overall increase of approximately 24.6%. Adjusted net sales demonstrated a similar trajectory, increasing from US$132,817 million to US$164,648 million, a growth of roughly 23.9% over the same period.

Year-over-Year Changes

The period between January 30, 2022, and January 29, 2023, saw the largest year-over-year increase in both net and adjusted sales. Net sales increased by US$19,047 million, while adjusted net sales increased by US$4,941 million. A decrease in net sales was observed between January 29, 2023, and January 28, 2024, with a decline of US$4,742 million. This contraction was followed by a recovery in both metrics between January 28, 2024, and February 2, 2025, and again between February 2, 2025, and February 1, 2026.

Adjustment Impact

The difference between net sales and adjusted net sales remained relatively stable throughout the observed period. The adjustment consistently added between US$707 million and US$1,252 million to the reported net sales figure annually. This suggests a recurring pattern of adjustments, potentially related to specific revenue recognition items or accounting treatments. The magnitude of the adjustment did not demonstrate a significant trend over the six-year period.

The fluctuations in net sales between 2023 and 2024 warrant further investigation to understand the underlying causes. The consistent positive adjustment to net sales indicates the presence of factors that are regularly incorporated into the final revenue figure.

Net earnings exhibited a general upward trajectory from 2021 to 2023, followed by a decline in 2024 and 2025, with a slight recovery projected for 2026. Adjusted net earnings mirrored this pattern, though the magnitude of the fluctuations differed. A comparison of the two metrics reveals consistent adjustments to reported earnings each year.

Overall Trend

Both net earnings and adjusted net earnings increased between 2021 and 2023. Net earnings rose from US$12,866 million to US$17,105 million, while adjusted net earnings increased from US$13,034 million to US$16,919 million. Subsequently, both metrics experienced declines in 2024, with net earnings falling to US$15,143 million and adjusted net earnings to US$14,852 million. This downward trend continued into 2025, with further reductions to US$14,806 million and US$13,963 million respectively. A modest increase in adjusted net earnings is forecast for 2026, reaching US$15,093 million, while net earnings are projected to remain at US$14,156 million.

Adjustment Magnitude

The difference between net earnings and adjusted net earnings remained relatively stable between 2021 and 2023, generally ranging between US$168 million and US$412 million. In 2024, the adjustment increased to US$309 million, and further to US$843 million in 2025. The adjustment is projected to decrease to US$937 million in 2026. This suggests that the nature or magnitude of items requiring adjustment has changed over time, becoming more significant in 2025.

Growth Rates

The largest percentage increase in net earnings occurred between 2021 and 2022 (27.7%). The largest percentage decrease occurred between 2023 and 2024 (-11.4%). Adjusted net earnings followed a similar pattern, with a peak growth rate between 2021 and 2022 (29.8%) and a significant decline between 2023 and 2024 (-12.2%). The projected increase in adjusted net earnings for 2026 represents a 1.4% increase from 2025.

The consistent application of adjustments to net earnings suggests the presence of recurring non-operational items. The increasing difference between net earnings and adjusted net earnings in recent periods warrants further investigation to understand the underlying causes of these adjustments and their potential impact on future performance.