Stock Analysis on Net
Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

Income Statement 

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Home Depot Inc., consolidated income statement

US$ in millions

Microsoft Excel
12 months ended: Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Net sales 159,514 152,669 157,403 151,157 132,110 110,225
Cost of sales (106,206) (101,709) (104,625) (100,325) (87,257) (72,653)
Gross profit 53,308 50,960 52,778 50,832 44,853 37,572
Selling, general and administrative (28,748) (26,598) (26,284) (25,406) (24,447) (19,740)
Depreciation and amortization (3,034) (2,673) (2,455) (2,386) (2,128) (1,989)
Operating expenses (31,782) (29,271) (28,739) (27,792) (26,575) (21,729)
Operating income 21,526 21,689 24,039 23,040 18,278 15,843
Interest income and other, net 201 178 55 44 47 73
Interest expense (2,321) (1,943) (1,617) (1,347) (1,347) (1,201)
Interest and other income (expense), net (2,120) (1,765) (1,562) (1,303) (1,300) (1,128)
Earnings before provision for income taxes 19,406 19,924 22,477 21,737 16,978 14,715
Provision for income taxes (4,600) (4,781) (5,372) (5,304) (4,112) (3,473)
Net earnings 14,806 15,143 17,105 16,433 12,866 11,242

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).

Net Sales and Cost of Sales
Net sales demonstrated a consistent upward trend over the six-year period, rising from 110,225 million USD in 2020 to 159,514 million USD in 2025. Correspondingly, the cost of sales also increased from -72,653 million USD to -106,206 million USD during the same period. Despite this growth in cost of sales, the gross profit showed an overall increase, indicating effective management of production and procurement costs relative to revenue growth.
Gross Profit
Gross profit increased steadily from 37,572 million USD in 2020 to 53,308 million USD in 2025, with a slight dip observed in 2024. This suggests a relatively stable gross margin, with operational efficiencies possibly offsetting increased costs in some years.
Operating Expenses
Operating expenses rose consistently, moving from -21,729 million USD in 2020 to -31,782 million USD in 2025. Selling, general, and administrative expenses formed the bulk of these costs, increasing from -19,740 million USD to -28,748 million USD. Depreciation and amortization also showed a gradual rise, implying ongoing investment in assets and their consumption over time.
Operating Income
Operating income demonstrated growth from 15,843 million USD in 2020 to a peak of 24,039 million USD in 2023. Thereafter, it experienced a decline to 21,526 million USD in 2025, indicating some pressure on operational profitability possibly due to rising expenses outpacing revenue growth in recent years.
Interest and Other Income (Expense), Net
The net of interest income and expenses was negative throughout the period, growing in magnitude from -1,128 million USD in 2020 to -2,120 million USD in 2025. Interest income showed a small increase, while interest expense rose significantly, which may reflect increased debt levels or higher interest rates impacting financial costs.
Earnings Before Provision for Income Taxes
This metric increased markedly from 14,715 million USD in 2020 to 22,477 million USD in 2023, followed by a decline to 19,406 million USD in 2025, mirroring the trend observed in operating income and net earnings, suggesting similar factors affecting overall profitability before tax.
Provision for Income Taxes
The provision for income taxes fluctuated but did not proportionally increase with taxable income, peaking at -5,372 million USD in 2023 before declining to -4,600 million USD in 2025. This variation may imply changes in effective tax rates, tax planning activities, or differences in pre-tax income levels.
Net Earnings
Net earnings grew steadily from 11,242 million USD in 2020 to 17,105 million USD in 2023, followed by a decline to 14,806 million USD in 2025. The dip in recent years suggests some challenges in maintaining profit growth, possibly influenced by increased operating expenses and higher interest costs.