Home Depot Inc. (NYSE:HD)

The financial data over the six-year period reveals a consistent upward trend in both total assets and adjusted total assets. Total assets increased from 51,236 million US dollars in early 2020 to 96,119 million US dollars by early 2025, reflecting substantial growth.

Similarly, adjusted total assets showed a parallel increase, starting at 51,097 million US dollars in 2020 and rising to 95,850 million US dollars by 2025. The close alignment between total and adjusted total assets suggests that the adjustments made had a relatively minor impact on the overall asset valuation over time.

Total Assets

Displayed a noticeable increase each year, with the most significant absolute growth occurring between 2024 and 2025, indicating accelerated asset accumulation or acquisition in the most recent period.

Adjusted Total Assets

Followed a similar growth trajectory to total assets, maintaining a steady correlation throughout the years, which implies consistency in the adjustments or accounting treatments applied.

Overall, the upward movement in asset figures highlights expansion and potential growth in the company’s capacity to generate value, invest, or finance operations. The minor variance between total and adjusted totals points to stable asset quality or accounting integrity across the years analyzed.

The annual financial data reveals notable fluctuations in current liabilities over the analyzed periods. Initially, current liabilities show a substantial increase from 18,375 million USD in early 2020 to a peak of 28,693 million USD in early 2022. Following this peak, there is a marked decrease to 23,110 million USD in early 2023, which is then followed by a further decline to 22,015 million USD in early 2024. However, the liabilities rise again to 28,661 million USD by early 2025, almost reaching the earlier peak.

A similar pattern is observed in adjusted current liabilities, which suggest a slightly more moderated trend. These adjusted figures rise from 16,259 million USD in early 2020 to a high of 25,097 million USD in early 2022. Subsequently, there is a decrease to 20,046 million USD in early 2023 and a continued reduction to 19,253 million USD in early 2024. The adjusted current liabilities then increase again to 26,051 million USD in early 2025.

Trend analysis

The data indicates cyclical movements characterized by a growth phase peaking in early 2022, followed by a contraction through early 2024, and then a rebound approaching prior peaks by early 2025.

Volatility

The fluctuations in current liabilities suggest a level of volatility in the company's short-term obligations which may correspond to operational or external market factors affecting working capital management.

Adjusted liabilities perspective

The adjusted current liabilities, which may exclude certain non-recurring or non-operational components, mirror the overall trend but at slightly lower absolute values, indicating adjustments that temper the reported liabilities.

The financial data indicates an overall increasing trend in both total liabilities and adjusted total liabilities over the analyzed periods.

Total Liabilities

The total liabilities increased steadily from US$54,352 million in 2020 to US$89,479 million in 2025. This represents a substantial cumulative growth over the five-year span, with noticeable increments each year. The pace of increase appears consistent, reflecting ongoing growth in the company's obligations or debt levels.

Adjusted Total Liabilities

Similarly, the adjusted total liabilities also rose from US$51,530 million in 2020 to US$84,907 million in 2025. The adjusted figures consistently remain slightly lower than the total liabilities across all years, which may account for specific adjustments such as removing non-recurring liabilities or other accounting considerations. The trend closely follows the pattern of the total liabilities, evidencing ongoing expansion in adjusted obligations.

Overall, the data reveals a clear upward trajectory in the liabilities of the company, with an increase of approximately 64.7% in total liabilities and 64.8% in adjusted total liabilities between 2020 and 2025. This persistent rise indicates a growing leverage or financing requirement, which may require further analysis in conjunction with asset growth or profitability to assess financial sustainability and risk.

The analysis of the annual financial data reveals notable fluctuations in both stockholders' equity and adjusted stockholders' equity over the observed periods, indicating varying financial stability and adjustments impacting equity values.

Stockholders’ Equity (Deficit)

This metric exhibits significant volatility, beginning with a negative value of -3,116 million USD in February 2020, shifting to a positive 3,299 million USD by January 2021. Subsequently, it declines again to -1,696 million USD in January 2022, before recovering to positive territory in the ensuing years, reaching 6,640 million USD by February 2025. This pattern suggests periods of financial strain followed by recovery phases, evidencing fluctuating capital retention or losses over time.

Adjusted Stockholders’ Equity (Deficit)

The adjusted equity starts at -433 million USD in February 2020 and increases markedly to 6,948 million USD in January 2021. Although it decreases to 2,465 million USD in January 2022, it then follows an upward trend, rising to 10,943 million USD by February 2025. The adjusted figures generally show a more stable and upward trajectory compared to the unadjusted stockholders’ equity, suggesting that adjustments account for certain variables or non-recurring items, resultantly presenting a clearer picture of the company’s capital strength.

Overall, while the stockholders’ equity shows pronounced volatility with shifts between deficits and surpluses, the adjusted stockholders’ equity highlights a stronger and more consistent improvement over the years. This indicates that underlying financial adjustments and corrections provide a more optimistic view of the company's equity position and its capacity for sustaining and growing shareholder value in the medium term.

Total Reported Debt

The total reported debt shows a consistent upward trend over the analyzed periods, increasing from $31.5 billion in early 2020 to $53.4 billion by early 2025. The growth is gradual, with noticeable jumps especially between 2024 and 2025, indicating an increasing reliance on debt financing.

Stockholders’ Equity (Deficit)

This metric fluctuates significantly over the years, starting with a deficit of $3.1 billion in 2020, improving to a positive equity of $3.3 billion in 2021, then declining again to a negative value in 2022. From 2023 onwards, the equity remains positive but relatively low compared to total debt, reaching $6.6 billion in 2025. This variability suggests volatility in retained earnings or changes in equity components.

Total Reported Capital

Total reported capital, representing the sum of debt and equity, increases overall from about $28.4 billion in 2020 to $60.0 billion in 2025. The upward trend mostly mirrors the rise in total debt, with equity contributing less consistently to capital growth.

Adjusted Total Debt

Adjusted total debt follows the same increasing pattern as total reported debt but at higher absolute values, rising from $37.4 billion in 2020 to $62.3 billion in 2025. This adjustment likely accounts for additional liabilities, reinforcing the observation of escalating leverage over the period.

Adjusted Stockholders’ Equity (Deficit)

The adjusted equity figures exhibit a positive trajectory starting below zero at -$0.43 billion in 2020, improving to $6.9 billion in 2021, then declining and climbing again to reach $10.9 billion in 2025. Despite fluctuations, the adjusted equity increases overall, suggesting improvement in comprehensive equity measures after considering adjustments.

Adjusted Total Capital

Adjusted total capital grows steadily from $36.9 billion in 2020 to $73.2 billion in 2025. This increase reflects the cumulative growth of both adjusted debt and adjusted equity, pointing to an expansion in overall capitalization funding sources.

Summary of Trends and Insights

The data reveals a clear pattern of rising debt levels, both reported and adjusted, indicating increased leverage over the five-year span. Stockholders’ equity, both reported and adjusted, shows volatility but a general improvement trend, particularly in the adjusted figures, which may reflect accounting refinements or operational improvements. The growth in total capital under both reported and adjusted terms suggests expansion or investment activities financed primarily through debt. The relative magnitude of debt versus equity points to a leveraged capital structure that may carry implications for financial risk and cost of capital going forward.

The financial data indicates a general upward trend in both net sales and adjusted net sales over the observed periods. From February 2020 to February 2025, net sales increased from $110,225 million to $159,514 million, reflecting steady growth annually.

Specifically, net sales rose consistently each year from 2020 through 2023, peaking at $157,403 million in January 2023. There was a slight decline noted in January 2024 to $152,669 million, followed by a recovery in February 2025 to $159,514 million, surpassing all previous figures.

Adjusted net sales followed a similar pattern, beginning at $110,559 million in February 2020 and reaching $159,362 million by February 2025. The figures show consistent yearly increases through January 2023, with a slight drop in January 2024, mirroring the trend seen in net sales. The adjusted net sales rebounded in February 2025, returning to a peak level.

The close alignment between net sales and adjusted net sales values over the entire period suggests limited adjustments or consistent application of adjustment criteria, resulting in similar trends for both metrics.

The financial data for the examined periods indicates the following trends in earnings performance:

Net Earnings (US$ in millions)

The net earnings showed a consistent upward trend from February 2, 2020, through January 29, 2023, increasing from 11,242 million US$ to 17,105 million US$. However, this was followed by a decline over the subsequent two years, dropping to 15,143 million US$ in January 28, 2024, and further to 14,806 million US$ by February 2, 2025.

Adjusted Net Earnings (US$ in millions)

Adjusted net earnings also increased steadily from 11,831 million US$ on February 2, 2020, reaching a peak of 16,919 million US$ by January 30, 2022. Thereafter, a slight decrease is observed in January 29, 2023, to 16,697 million US$, followed by a more noticeable decline to 14,852 million US$ in January 28, 2024, and further to 13,963 million US$ by February 2, 2025.

Overall, the company demonstrated growth in earnings over the initial three-year period. However, the data for the last two years reflect a downward adjustment in both net and adjusted net earnings, suggesting emerging challenges or changes in operational performance impacting profitability. The consistency between net and adjusted net earnings trends confirms that the underlying earnings adjustments did not significantly distort the observable performance pattern.