Stock Analysis on Net
Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

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

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

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

Microsoft Excel
ROE = ROA × Financial Leverage
Jan 28, 2024 1,450.48% = 19.79% × 73.30
Oct 29, 2023 1,098.18% = 20.78% × 52.85
Jul 30, 2023 1,215.96% = 21.25% × 57.22
Apr 30, 2023 4,626.24% = 21.92% × 211.01
Jan 29, 2023 1,095.07% = 22.38% × 48.94
Oct 30, 2022 1,317.03% = 22.24% × 59.22
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 — = — × 34.24
Jul 29, 2018 — = — × 23.01
Apr 29, 2018 — = — × 27.65

Based on: 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 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).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

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

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jan 28, 2024 1,450.48% = 9.92% × 1.99 × 73.30
Oct 29, 2023 1,098.18% = 10.22% × 2.03 × 52.85
Jul 30, 2023 1,215.96% = 10.48% × 2.03 × 57.22
Apr 30, 2023 4,626.24% = 10.75% × 2.04 × 211.01
Jan 29, 2023 1,095.07% = 10.87% × 2.06 × 48.94
Oct 30, 2022 1,317.03% = 10.87% × 2.05 × 59.22
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 — = — × — × 34.24
Jul 29, 2018 — = — × — × 23.01
Apr 29, 2018 — = — × — × 27.65

Based on: 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 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).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in financial leverage ratio.

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
Jan 28, 2024 1,450.48% = 0.76 × 0.91 × 14.32% × 1.99 × 73.30
Oct 29, 2023 1,098.18% = 0.76 × 0.92 × 14.61% × 2.03 × 52.85
Jul 30, 2023 1,215.96% = 0.76 × 0.92 × 14.96% × 2.03 × 57.22
Apr 30, 2023 4,626.24% = 0.76 × 0.93 × 15.25% × 2.04 × 211.01
Jan 29, 2023 1,095.07% = 0.76 × 0.93 × 15.31% × 2.06 × 48.94
Oct 30, 2022 1,317.03% = 0.76 × 0.94 × 15.35% × 2.05 × 59.22
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 — = — × — × — × — × 34.24
Jul 29, 2018 — = — × — × — × — × 23.01
Apr 29, 2018 — = — × — × — × — × 27.65

Based on: 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 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).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

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

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jan 28, 2024 19.79% = 9.92% × 1.99
Oct 29, 2023 20.78% = 10.22% × 2.03
Jul 30, 2023 21.25% = 10.48% × 2.03
Apr 30, 2023 21.92% = 10.75% × 2.04
Jan 29, 2023 22.38% = 10.87% × 2.06
Oct 30, 2022 22.24% = 10.87% × 2.05
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 — = — × —
Jul 29, 2018 — = — × —
Apr 29, 2018 — = — × —

Based on: 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 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).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2024 is the decrease in profitability measured by net profit margin 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
Jan 28, 2024 19.79% = 0.76 × 0.91 × 14.32% × 1.99
Oct 29, 2023 20.78% = 0.76 × 0.92 × 14.61% × 2.03
Jul 30, 2023 21.25% = 0.76 × 0.92 × 14.96% × 2.03
Apr 30, 2023 21.92% = 0.76 × 0.93 × 15.25% × 2.04
Jan 29, 2023 22.38% = 0.76 × 0.93 × 15.31% × 2.06
Oct 30, 2022 22.24% = 0.76 × 0.94 × 15.35% × 2.05
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 — = — × — × — × —
Jul 29, 2018 — = — × — × — × —
Apr 29, 2018 — = — × — × — × —

Based on: 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 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).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2024 is the decrease in operating profitability measured by EBIT margin 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
Jan 28, 2024 9.92% = 0.76 × 0.91 × 14.32%
Oct 29, 2023 10.22% = 0.76 × 0.92 × 14.61%
Jul 30, 2023 10.48% = 0.76 × 0.92 × 14.96%
Apr 30, 2023 10.75% = 0.76 × 0.93 × 15.25%
Jan 29, 2023 10.87% = 0.76 × 0.93 × 15.31%
Oct 30, 2022 10.87% = 0.76 × 0.94 × 15.35%
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 — = — × — × —
Jul 29, 2018 — = — × — × —
Apr 29, 2018 — = — × — × —

Based on: 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 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).

The primary reason for the decrease in net profit margin ratio over Q4 2024 is the decrease in operating profitability measured by EBIT margin ratio.