Return on Equity (ROE)
since 2005
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Home Depot Inc. pages available for free this week:
- Income Statement
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Net Profit Margin since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Calculation
Home Depot Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings1 | ÷ | Stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Feb 2, 2025 | = | 100 | × | ÷ | |||
| Jan 28, 2024 | = | 100 | × | ÷ | |||
| Jan 29, 2023 | = | 100 | × | ÷ | |||
| Jan 30, 2022 | = | 100 | × | ÷ | |||
| Jan 31, 2021 | = | 100 | × | ÷ | |||
| Feb 2, 2020 | = | 100 | × | ÷ | |||
| Feb 3, 2019 | = | 100 | × | ÷ | |||
| Jan 28, 2018 | = | 100 | × | ÷ | |||
| Jan 29, 2017 | = | 100 | × | ÷ | |||
| Jan 31, 2016 | = | 100 | × | ÷ | |||
| Feb 1, 2015 | = | 100 | × | ÷ | |||
| Feb 2, 2014 | = | 100 | × | ÷ | |||
| Feb 3, 2013 | = | 100 | × | ÷ | |||
| Jan 29, 2012 | = | 100 | × | ÷ | |||
| Jan 30, 2011 | = | 100 | × | ÷ | |||
| Jan 31, 2010 | = | 100 | × | ÷ | |||
| Feb 1, 2009 | = | 100 | × | ÷ | |||
| Feb 3, 2008 | = | 100 | × | ÷ | |||
| Jan 28, 2007 | = | 100 | × | ÷ | |||
| Jan 29, 2006 | = | 100 | × | ÷ | |||
| Jan 30, 2005 | = | 100 | × | ÷ |
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), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).
1 US$ in millions
The analysis of the annual financial data reveals several noteworthy trends in net earnings, stockholders’ equity, and return on equity (ROE) over the period from 2005 to 2025.
- Net Earnings
- Net earnings demonstrate an overall upward trend from 2005 through 2025, beginning at 5,001 million US dollars in 2005 and reaching a peak of 17,105 million US dollars in 2023. There are fluctuations along the timeline, with a noticeable dip in 2009 to 2,260 million coinciding with economic downturn periods, after which earnings gradually recover and climb significantly post-2010. After 2023, a decline is seen with earnings reducing to 15,143 million in 2024 and further to 14,806 million in 2025.
- Stockholders’ Equity (Deficit)
- Stockholders' equity shows volatility and a predominantly declining pattern over the years. From 24,158 million US dollars in 2005, equity declines overall to 1,044 million by 2024, despite intermittent periods of slight recovery. The most significant decrease occurs between 2013 and 2020, during which equity even registers negative values (deficits), reaching a low of -3,116 million in 2021. A partial recovery occurs after 2021 but equity remains below the initial levels of earlier years, indicating potential concerns regarding the company's net asset position during the middle years.
- Return on Equity (ROE)
- ROE exhibits a highly erratic and atypical trend over the timeframe. Initial values from 2005 through 2014 range between 12.71% and 110.97%, with a notable increase peaking at 593.54% in 2018. After 2018, ROE values are partially unavailable or show extreme variability, including an outstanding surge to values over 1,000% in some years (e.g., 2024 at 1450.48%). This volatility in ROE likely correlates with the significant fluctuations and even negative values in stockholders’ equity, causing ROE to amplify dramatically due to the low or negative equity base rather than solely improved earnings performance.
In summary, net earnings have grown considerably over the 20-year horizon despite some volatility, while stockholders’ equity has declined with notable fluctuations and periods of negative equity. The extreme variability in ROE, especially in later years, primarily reflects the diminishing equity base rather than proportional increases in profitability. This divergence suggests a need for closer scrutiny on the capital structure and equity management to understand the sustainability of return measures.
Comparison to Competitors
Home Depot Inc., ROE, long-term trends, comparison to competitors
| Home Depot Inc. | Amazon.com Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|
| Feb 2, 2025 | ||||
| Jan 28, 2024 | ||||
| Jan 29, 2023 | ||||
| Jan 30, 2022 | ||||
| Jan 31, 2021 | ||||
| Feb 2, 2020 | ||||
| Feb 3, 2019 | ||||
| Jan 28, 2018 | ||||
| Jan 29, 2017 | ||||
| Jan 31, 2016 | ||||
| Feb 1, 2015 | ||||
| Feb 2, 2014 | ||||
| Feb 3, 2013 | ||||
| Jan 29, 2012 | ||||
| Jan 30, 2011 | ||||
| Jan 31, 2010 | ||||
| Feb 1, 2009 | ||||
| Feb 3, 2008 | ||||
| Jan 28, 2007 | ||||
| Jan 29, 2006 | ||||
| Jan 30, 2005 |
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), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Home Depot Inc., ROE, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Home Depot Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Feb 2, 2025 | ||
| Jan 28, 2024 | ||
| Jan 29, 2023 | ||
| Jan 30, 2022 | ||
| Jan 31, 2021 | ||
| Feb 2, 2020 | ||
| Feb 3, 2019 | ||
| Jan 28, 2018 | ||
| Jan 29, 2017 | ||
| Jan 31, 2016 | ||
| Feb 1, 2015 | ||
| Feb 2, 2014 | ||
| Feb 3, 2013 | ||
| Jan 29, 2012 | ||
| Jan 30, 2011 | ||
| Jan 31, 2010 | ||
| Feb 1, 2009 | ||
| Feb 3, 2008 | ||
| Jan 28, 2007 | ||
| Jan 29, 2006 | ||
| Jan 30, 2005 |
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), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).
Comparison to Industry (Consumer Discretionary)
Home Depot Inc., ROE, long-term trends, comparison to industry (consumer discretionary)
| Home Depot Inc. | Consumer Discretionary | |
|---|---|---|
| Feb 2, 2025 | ||
| Jan 28, 2024 | ||
| Jan 29, 2023 | ||
| Jan 30, 2022 | ||
| Jan 31, 2021 | ||
| Feb 2, 2020 | ||
| Feb 3, 2019 | ||
| Jan 28, 2018 | ||
| Jan 29, 2017 | ||
| Jan 31, 2016 | ||
| Feb 1, 2015 | ||
| Feb 2, 2014 | ||
| Feb 3, 2013 | ||
| Jan 29, 2012 | ||
| Jan 30, 2011 | ||
| Jan 31, 2010 | ||
| Feb 1, 2009 | ||
| Feb 3, 2008 | ||
| Jan 28, 2007 | ||
| Jan 29, 2006 | ||
| Jan 30, 2005 |
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), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).