Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Home Depot Inc. (NYSE:HD)

Adjusted Financial Ratios

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Adjusted Financial Ratios (Summary)

Home Depot Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Activity Ratio
Total Asset Turnover
Reported 1.87 2.15 2.46 2.27 2.20 2.08
Adjusted 1.89 2.16 2.22 2.07 2.00 1.92
Liquidity Ratio
Current Ratio
Reported 1.23 1.08 1.11 1.17 1.25 1.36
Adjusted 1.40 1.22 1.24 1.32 1.42 1.50
Solvency Ratios
Debt to Equity
Reported 11.29 18.59 5.45 3.37
Adjusted 6.25 123.91 8.81 4.52 3.10
Debt to Capital
Reported 0.92 1.11 1.07 0.95 0.84 0.77
Adjusted 0.86 1.01 0.99 0.90 0.82 0.76
Financial Leverage
Reported 21.39 30.63 9.92 6.74
Adjusted 10.11 177.49 13.67 7.63 5.63
Profitability Ratios
Net Profit Margin
Reported 9.74% 10.20% 10.28% 8.55% 8.41% 7.92%
Adjusted 9.81% 10.70% 10.09% 9.08% 8.42% 7.54%
Return on Equity (ROE)
Reported 390.00% 593.54% 183.64% 110.97%
Adjusted 187.59% 3,983.94% 256.34% 128.53% 81.69%
Return on Assets (ROA)
Reported 18.23% 21.94% 25.27% 19.38% 18.52% 16.47%
Adjusted 18.55% 23.15% 22.45% 18.76% 16.85% 14.51%

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Home Depot Inc.’s adjusted total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Home Depot Inc.’s adjusted current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Home Depot Inc.’s adjusted debt-to-capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Home Depot Inc.’s adjusted net profit margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Home Depot Inc.’s adjusted ROA improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Home Depot Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net sales 132,110  110,225  108,203  100,904  94,595  88,519 
Total assets 70,581  51,236  44,003  44,529  42,966  42,549 
Activity Ratio
Total asset turnover1 1.87 2.15 2.46 2.27 2.20 2.08
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net sales2 132,817  110,559  108,180  101,040  94,698  88,617 
Adjusted total assets3 70,276  51,097  48,632  48,928  47,358  46,072 
Activity Ratio
Adjusted total asset turnover4 1.89 2.16 2.22 2.07 2.00 1.92

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

1 2021 Calculation
Total asset turnover = Net sales ÷ Total assets
= 132,110 ÷ 70,581 = 1.87

2 Adjusted net sales. See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 132,817 ÷ 70,276 = 1.89

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Home Depot Inc.’s adjusted total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 28,477  19,810  18,529  18,933  17,724  16,993 
Current liabilities 23,166  18,375  16,716  16,194  14,133  12,526 
Liquidity Ratio
Current ratio1 1.23 1.08 1.11 1.17 1.25 1.36
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 28,477  19,810  18,529  18,933  17,724  16,484 
Adjusted current liabilities3 20,343  16,259  14,934  14,389  12,464  10,958 
Liquidity Ratio
Adjusted current ratio4 1.40 1.22 1.24 1.32 1.42 1.50

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 28,477 ÷ 23,166 = 1.23

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2021 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 28,477 ÷ 20,343 = 1.40

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Home Depot Inc.’s adjusted current ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 37,238  31,483  29,202  27,028  23,601  21,315 
Stockholders’ equity (deficit) 3,299  (3,116) (1,878) 1,454  4,333  6,316 
Solvency Ratio
Debt to equity1 11.29 18.59 5.45 3.37
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 43,422  37,377  33,952  31,546  28,084  25,395 
Adjusted stockholders’ equity (deficit)3 6,948  (433) 274  3,580  6,207  8,181 
Solvency Ratio
Adjusted debt to equity4 6.25 123.91 8.81 4.52 3.10

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 37,238 ÷ 3,299 = 11.29

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity (deficit). See details »

4 2021 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity (deficit)
= 43,422 ÷ 6,948 = 6.25


Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 37,238  31,483  29,202  27,028  23,601  21,315 
Total capital 40,537  28,367  27,324  28,482  27,934  27,631 
Solvency Ratio
Debt to capital1 0.92 1.11 1.07 0.95 0.84 0.77
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 43,422  37,377  33,952  31,546  28,084  25,395 
Adjusted total capital3 50,370  36,944  34,226  35,126  34,291  33,576 
Solvency Ratio
Adjusted debt to capital4 0.86 1.01 0.99 0.90 0.82 0.76

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 37,238 ÷ 40,537 = 0.92

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2021 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 43,422 ÷ 50,370 = 0.86

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Home Depot Inc.’s adjusted debt-to-capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 70,581  51,236  44,003  44,529  42,966  42,549 
Stockholders’ equity (deficit) 3,299  (3,116) (1,878) 1,454  4,333  6,316 
Solvency Ratio
Financial leverage1 21.39 30.63 9.92 6.74
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 70,276  51,097  48,632  48,928  47,358  46,072 
Adjusted stockholders’ equity (deficit)3 6,948  (433) 274  3,580  6,207  8,181 
Solvency Ratio
Adjusted financial leverage4 10.11 177.49 13.67 7.63 5.63

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 70,581 ÷ 3,299 = 21.39

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity (deficit). See details »

4 2021 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity (deficit)
= 70,276 ÷ 6,948 = 10.11


Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings 12,866  11,242  11,121  8,630  7,957  7,009 
Net sales 132,110  110,225  108,203  100,904  94,595  88,519 
Profitability Ratio
Net profit margin1 9.74% 10.20% 10.28% 8.55% 8.41% 7.92%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 13,034  11,831  10,916  9,177  7,978  6,683 
Adjusted net sales3 132,817  110,559  108,180  101,040  94,698  88,617 
Profitability Ratio
Adjusted net profit margin4 9.81% 10.70% 10.09% 9.08% 8.42% 7.54%

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

1 2021 Calculation
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 12,866 ÷ 132,110 = 9.74%

2 Adjusted net earnings. See details »

3 Adjusted net sales. See details »

4 2021 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Adjusted net sales
= 100 × 13,034 ÷ 132,817 = 9.81%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Home Depot Inc.’s adjusted net profit margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings 12,866  11,242  11,121  8,630  7,957  7,009 
Stockholders’ equity (deficit) 3,299  (3,116) (1,878) 1,454  4,333  6,316 
Profitability Ratio
ROE1 390.00% 593.54% 183.64% 110.97%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 13,034  11,831  10,916  9,177  7,978  6,683 
Adjusted stockholders’ equity (deficit)3 6,948  (433) 274  3,580  6,207  8,181 
Profitability Ratio
Adjusted ROE4 187.59% 3,983.94% 256.34% 128.53% 81.69%

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

1 2021 Calculation
ROE = 100 × Net earnings ÷ Stockholders’ equity (deficit)
= 100 × 12,866 ÷ 3,299 = 390.00%

2 Adjusted net earnings. See details »

3 Adjusted stockholders’ equity (deficit). See details »

4 2021 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted stockholders’ equity (deficit)
= 100 × 13,034 ÷ 6,948 = 187.59%


Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings 12,866  11,242  11,121  8,630  7,957  7,009 
Total assets 70,581  51,236  44,003  44,529  42,966  42,549 
Profitability Ratio
ROA1 18.23% 21.94% 25.27% 19.38% 18.52% 16.47%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 13,034  11,831  10,916  9,177  7,978  6,683 
Adjusted total assets3 70,276  51,097  48,632  48,928  47,358  46,072 
Profitability Ratio
Adjusted ROA4 18.55% 23.15% 22.45% 18.76% 16.85% 14.51%

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

1 2021 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 12,866 ÷ 70,581 = 18.23%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 13,034 ÷ 70,276 = 18.55%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Home Depot Inc.’s adjusted ROA improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.