Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Two-Component Disaggregation of ROE

Home Depot Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Jul 31, 2022 7,124.47% = 22.27% × 319.94
May 1, 2022 = 21.57% ×
Jan 30, 2022 = 22.86% ×
Oct 31, 2021 1,539.90% = 21.82% × 70.56
Aug 1, 2021 736.64% = 21.54% × 34.20
May 2, 2021 844.74% = 20.35% × 41.51
Jan 31, 2021 390.00% = 18.23% × 21.39
Nov 1, 2020 813.68% = 18.66% × 43.60
Aug 2, 2020 = 18.67% ×
May 3, 2020 = 18.68% ×
Feb 2, 2020 = 21.94% ×
Nov 3, 2019 = 21.23% ×
Aug 4, 2019 = 21.54% ×
May 5, 2019 = 21.80% ×
Feb 3, 2019 = 25.27% ×
Oct 28, 2018 799.70% = 23.35% × 34.24
Jul 29, 2018 490.49% = 21.31% × 23.01
Apr 29, 2018 534.68% = 19.34% × 27.65
Jan 28, 2018 593.54% = 19.38% × 30.63
Oct 29, 2017 337.99% = 19.09% × 17.70
Jul 30, 2017 236.33% = 18.27% × 12.93
Apr 30, 2017 206.16% = 18.17% × 11.34
Jan 29, 2017 183.64% = 18.52% × 9.92
Oct 30, 2016 = × 7.92
Jul 31, 2016 = × 6.65
May 1, 2016 = × 7.04

Based on: 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-K (reporting date: 2018-01-28), 10-Q (reporting date: 2017-10-29), 10-Q (reporting date: 2017-07-30), 10-Q (reporting date: 2017-04-30), 10-K (reporting date: 2017-01-29), 10-Q (reporting date: 2016-10-30), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-05-01).


Three-Component Disaggregation of ROE

Home Depot Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jul 31, 2022 7,124.47% = 10.88% × 2.05 × 319.94
May 1, 2022 = 10.83% × 1.99 ×
Jan 30, 2022 = 10.87% × 2.10 ×
Oct 31, 2021 1,539.90% = 10.79% × 2.02 × 70.56
Aug 1, 2021 736.64% = 10.55% × 2.04 × 34.20
May 2, 2021 844.74% = 10.45% × 1.95 × 41.51
Jan 31, 2021 390.00% = 9.74% × 1.87 × 21.39
Nov 1, 2020 813.68% = 9.94% × 1.88 × 43.60
Aug 2, 2020 = 9.91% × 1.88 ×
May 3, 2020 = 9.79% × 1.91 ×
Feb 2, 2020 = 10.20% × 2.15 ×
Nov 3, 2019 = 10.01% × 2.12 ×
Aug 4, 2019 = 10.18% × 2.12 ×
May 5, 2019 = 10.24% × 2.13 ×
Feb 3, 2019 = 10.28% × 2.46 ×
Oct 28, 2018 799.70% = 10.00% × 2.34 × 34.24
Jul 29, 2018 490.49% = 9.45% × 2.26 × 23.01
Apr 29, 2018 534.68% = 8.85% × 2.19 × 27.65
Jan 28, 2018 593.54% = 8.55% × 2.27 × 30.63
Oct 29, 2017 337.99% = 8.66% × 2.20 × 17.70
Jul 30, 2017 236.33% = 8.63% × 2.12 × 12.93
Apr 30, 2017 206.16% = 8.53% × 2.13 × 11.34
Jan 29, 2017 183.64% = 8.41% × 2.20 × 9.92
Oct 30, 2016 = × × 7.92
Jul 31, 2016 = × × 6.65
May 1, 2016 = × × 7.04

Based on: 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-K (reporting date: 2018-01-28), 10-Q (reporting date: 2017-10-29), 10-Q (reporting date: 2017-07-30), 10-Q (reporting date: 2017-04-30), 10-K (reporting date: 2017-01-29), 10-Q (reporting date: 2016-10-30), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-05-01).


Five-Component Disaggregation of ROE

Home Depot Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jul 31, 2022 7,124.47% = 0.76 × 0.94 × 15.33% × 2.05 × 319.94
May 1, 2022 = 0.76 × 0.94 × 15.23% × 1.99 ×
Jan 30, 2022 = 0.76 × 0.94 × 15.27% × 2.10 ×
Oct 31, 2021 1,539.90% = 0.76 × 0.94 × 15.12% × 2.02 × 70.56
Aug 1, 2021 736.64% = 0.76 × 0.94 × 14.81% × 2.04 × 34.20
May 2, 2021 844.74% = 0.76 × 0.93 × 14.73% × 1.95 × 41.51
Jan 31, 2021 390.00% = 0.76 × 0.93 × 13.87% × 1.87 × 21.39
Nov 1, 2020 813.68% = 0.76 × 0.93 × 14.05% × 1.88 × 43.60
Aug 2, 2020 = 0.76 × 0.92 × 14.04% × 1.88 ×
May 3, 2020 = 0.76 × 0.92 × 13.91% × 1.91 ×
Feb 2, 2020 = 0.76 × 0.92 × 14.44% × 2.15 ×
Nov 3, 2019 = 0.75 × 0.93 × 14.31% × 2.12 ×
Aug 4, 2019 = 0.76 × 0.93 × 14.37% × 2.12 ×
May 5, 2019 = 0.76 × 0.93 × 14.43% × 2.13 ×
Feb 3, 2019 = 0.76 × 0.93 × 14.42% × 2.46 ×
Oct 28, 2018 799.70% = 0.73 × 0.93 × 14.62% × 2.34 × 34.24
Jul 29, 2018 490.49% = 0.70 × 0.93 × 14.61% × 2.26 × 23.01
Apr 29, 2018 534.68% = 0.66 × 0.93 × 14.51% × 2.19 × 27.65
Jan 28, 2018 593.54% = 0.63 × 0.93 × 14.62% × 2.27 × 30.63
Oct 29, 2017 337.99% = 0.64 × 0.93 × 14.59% × 2.20 × 17.70
Jul 30, 2017 236.33% = 0.64 × 0.93 × 14.49% × 2.12 × 12.93
Apr 30, 2017 206.16% = 0.64 × 0.93 × 14.36% × 2.13 × 11.34
Jan 29, 2017 183.64% = 0.64 × 0.93 × 14.23% × 2.20 × 9.92
Oct 30, 2016 = × × × × 7.92
Jul 31, 2016 = × × × × 6.65
May 1, 2016 = × × × × 7.04

Based on: 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-K (reporting date: 2018-01-28), 10-Q (reporting date: 2017-10-29), 10-Q (reporting date: 2017-07-30), 10-Q (reporting date: 2017-04-30), 10-K (reporting date: 2017-01-29), 10-Q (reporting date: 2016-10-30), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-05-01).


Two-Component Disaggregation of ROA

Home Depot Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jul 31, 2022 22.27% = 10.88% × 2.05
May 1, 2022 21.57% = 10.83% × 1.99
Jan 30, 2022 22.86% = 10.87% × 2.10
Oct 31, 2021 21.82% = 10.79% × 2.02
Aug 1, 2021 21.54% = 10.55% × 2.04
May 2, 2021 20.35% = 10.45% × 1.95
Jan 31, 2021 18.23% = 9.74% × 1.87
Nov 1, 2020 18.66% = 9.94% × 1.88
Aug 2, 2020 18.67% = 9.91% × 1.88
May 3, 2020 18.68% = 9.79% × 1.91
Feb 2, 2020 21.94% = 10.20% × 2.15
Nov 3, 2019 21.23% = 10.01% × 2.12
Aug 4, 2019 21.54% = 10.18% × 2.12
May 5, 2019 21.80% = 10.24% × 2.13
Feb 3, 2019 25.27% = 10.28% × 2.46
Oct 28, 2018 23.35% = 10.00% × 2.34
Jul 29, 2018 21.31% = 9.45% × 2.26
Apr 29, 2018 19.34% = 8.85% × 2.19
Jan 28, 2018 19.38% = 8.55% × 2.27
Oct 29, 2017 19.09% = 8.66% × 2.20
Jul 30, 2017 18.27% = 8.63% × 2.12
Apr 30, 2017 18.17% = 8.53% × 2.13
Jan 29, 2017 18.52% = 8.41% × 2.20
Oct 30, 2016 = ×
Jul 31, 2016 = ×
May 1, 2016 = ×

Based on: 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-K (reporting date: 2018-01-28), 10-Q (reporting date: 2017-10-29), 10-Q (reporting date: 2017-07-30), 10-Q (reporting date: 2017-04-30), 10-K (reporting date: 2017-01-29), 10-Q (reporting date: 2016-10-30), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-05-01).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2023 is the increase in asset turnover ratio.


Four-Component Disaggregation of ROA

Home Depot Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jul 31, 2022 22.27% = 0.76 × 0.94 × 15.33% × 2.05
May 1, 2022 21.57% = 0.76 × 0.94 × 15.23% × 1.99
Jan 30, 2022 22.86% = 0.76 × 0.94 × 15.27% × 2.10
Oct 31, 2021 21.82% = 0.76 × 0.94 × 15.12% × 2.02
Aug 1, 2021 21.54% = 0.76 × 0.94 × 14.81% × 2.04
May 2, 2021 20.35% = 0.76 × 0.93 × 14.73% × 1.95
Jan 31, 2021 18.23% = 0.76 × 0.93 × 13.87% × 1.87
Nov 1, 2020 18.66% = 0.76 × 0.93 × 14.05% × 1.88
Aug 2, 2020 18.67% = 0.76 × 0.92 × 14.04% × 1.88
May 3, 2020 18.68% = 0.76 × 0.92 × 13.91% × 1.91
Feb 2, 2020 21.94% = 0.76 × 0.92 × 14.44% × 2.15
Nov 3, 2019 21.23% = 0.75 × 0.93 × 14.31% × 2.12
Aug 4, 2019 21.54% = 0.76 × 0.93 × 14.37% × 2.12
May 5, 2019 21.80% = 0.76 × 0.93 × 14.43% × 2.13
Feb 3, 2019 25.27% = 0.76 × 0.93 × 14.42% × 2.46
Oct 28, 2018 23.35% = 0.73 × 0.93 × 14.62% × 2.34
Jul 29, 2018 21.31% = 0.70 × 0.93 × 14.61% × 2.26
Apr 29, 2018 19.34% = 0.66 × 0.93 × 14.51% × 2.19
Jan 28, 2018 19.38% = 0.63 × 0.93 × 14.62% × 2.27
Oct 29, 2017 19.09% = 0.64 × 0.93 × 14.59% × 2.20
Jul 30, 2017 18.27% = 0.64 × 0.93 × 14.49% × 2.12
Apr 30, 2017 18.17% = 0.64 × 0.93 × 14.36% × 2.13
Jan 29, 2017 18.52% = 0.64 × 0.93 × 14.23% × 2.20
Oct 30, 2016 = × × ×
Jul 31, 2016 = × × ×
May 1, 2016 = × × ×

Based on: 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-K (reporting date: 2018-01-28), 10-Q (reporting date: 2017-10-29), 10-Q (reporting date: 2017-07-30), 10-Q (reporting date: 2017-04-30), 10-K (reporting date: 2017-01-29), 10-Q (reporting date: 2016-10-30), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-05-01).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2023 is the increase in efficiency measured by asset turnover ratio.


Disaggregation of Net Profit Margin

Home Depot Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jul 31, 2022 10.88% = 0.76 × 0.94 × 15.33%
May 1, 2022 10.83% = 0.76 × 0.94 × 15.23%
Jan 30, 2022 10.87% = 0.76 × 0.94 × 15.27%
Oct 31, 2021 10.79% = 0.76 × 0.94 × 15.12%
Aug 1, 2021 10.55% = 0.76 × 0.94 × 14.81%
May 2, 2021 10.45% = 0.76 × 0.93 × 14.73%
Jan 31, 2021 9.74% = 0.76 × 0.93 × 13.87%
Nov 1, 2020 9.94% = 0.76 × 0.93 × 14.05%
Aug 2, 2020 9.91% = 0.76 × 0.92 × 14.04%
May 3, 2020 9.79% = 0.76 × 0.92 × 13.91%
Feb 2, 2020 10.20% = 0.76 × 0.92 × 14.44%
Nov 3, 2019 10.01% = 0.75 × 0.93 × 14.31%
Aug 4, 2019 10.18% = 0.76 × 0.93 × 14.37%
May 5, 2019 10.24% = 0.76 × 0.93 × 14.43%
Feb 3, 2019 10.28% = 0.76 × 0.93 × 14.42%
Oct 28, 2018 10.00% = 0.73 × 0.93 × 14.62%
Jul 29, 2018 9.45% = 0.70 × 0.93 × 14.61%
Apr 29, 2018 8.85% = 0.66 × 0.93 × 14.51%
Jan 28, 2018 8.55% = 0.63 × 0.93 × 14.62%
Oct 29, 2017 8.66% = 0.64 × 0.93 × 14.59%
Jul 30, 2017 8.63% = 0.64 × 0.93 × 14.49%
Apr 30, 2017 8.53% = 0.64 × 0.93 × 14.36%
Jan 29, 2017 8.41% = 0.64 × 0.93 × 14.23%
Oct 30, 2016 = × ×
Jul 31, 2016 = × ×
May 1, 2016 = × ×

Based on: 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29), 10-K (reporting date: 2018-01-28), 10-Q (reporting date: 2017-10-29), 10-Q (reporting date: 2017-07-30), 10-Q (reporting date: 2017-04-30), 10-K (reporting date: 2017-01-29), 10-Q (reporting date: 2016-10-30), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-05-01).

The primary reason for the increase in net profit margin ratio over Q2 2023 is the increase in operating profitability measured by EBIT margin ratio.