Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Home Depot Inc., consolidated statement of comprehensive income
US$ in millions
Based on: 10-K (reporting date: 2026-02-01), 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).
Net earnings exhibited a general upward trend from 2021 to 2023, increasing from US$12,866 million to US$17,105 million. However, earnings then decreased in both 2024 and 2025, reaching US$14,806 million, and continued to decline slightly in 2026 to US$14,156 million. While substantial, the recent decline suggests a potential shift in profitability. Comprehensive income mirrored this pattern, closely tracking net earnings fluctuations.
- Foreign Currency Translation Adjustments
- These adjustments were initially positive at US$60 million in 2021, but became negative in 2022 at -US$77 million, and remained negative in 2023 at -US$22 million. A significant positive adjustment of US$232 million occurred in 2024, followed by a substantial negative adjustment of -US$605 million in 2025, and a positive adjustment of US$469 million in 2026. This indicates considerable volatility related to foreign currency exchange rates and their impact on the company’s financial position.
- Cash Flow Hedges
- Cash flow hedges remained relatively stable between 2021 and 2024, fluctuating between US$8 million and US$9 million. A notable decrease to -US$45 million was observed in 2025, followed by a recovery to US$11 million in 2026. This suggests a change in hedging strategies or effectiveness during 2025.
- Other Comprehensive Income (Loss)
- Other comprehensive income (loss), net of tax, demonstrated significant fluctuations. It was positive in 2021 and 2024, reaching US$68 million and US$241 million respectively. Negative values were recorded in 2022 (-US$33 million), 2023 (-US$14 million), and particularly in 2025 (-US$652 million), before recovering to US$477 million in 2026. These swings are largely driven by the volatility in foreign currency translation adjustments.
The overall trend in comprehensive income closely follows that of net earnings, but is significantly impacted by the fluctuations in other comprehensive income components, particularly foreign currency translation adjustments. The increasing volatility in these adjustments warrants further investigation to understand the underlying drivers and potential risks.
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