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

Beginner level

Two-Component Disaggregation of ROE

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

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
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 136.68% = 17.27% × 7.92
Jul 31, 2016 111.76% = 16.81% × 6.65
May 1, 2016 114.18% = 16.23% × 7.04
Jan 31, 2016 110.97% = 16.47% × 6.74
Nov 1, 2015 90.79% = 15.67% × 5.79
Aug 2, 2015 77.91% = 15.36% × 5.07
May 3, 2015 71.11% = 15.40% × 4.62
Feb 1, 2015 68.06% = 15.88% × 4.29
Nov 2, 2014 = × 4.11
Aug 3, 2014 = × 3.79
May 4, 2014 = × 3.51

Based on: 10-Q (filing date: 2020-08-25), 10-Q (filing date: 2020-05-27), 10-K (filing date: 2020-03-25), 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28).


Three-Component Disaggregation of ROE

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

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
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 136.68% = 8.23% × 2.10 × 7.92
Jul 31, 2016 111.76% = 8.08% × 2.08 × 6.65
May 1, 2016 114.18% = 8.00% × 2.03 × 7.04
Jan 31, 2016 110.97% = 7.92% × 2.08 × 6.74
Nov 1, 2015 90.79% = 7.98% × 1.96 × 5.79
Aug 2, 2015 77.91% = 7.88% × 1.95 × 5.07
May 3, 2015 71.11% = 7.76% × 1.98 × 4.62
Feb 1, 2015 68.06% = 7.63% × 2.08 × 4.29
Nov 2, 2014 = × × 4.11
Aug 3, 2014 = × × 3.79
May 4, 2014 = × × 3.51

Based on: 10-Q (filing date: 2020-08-25), 10-Q (filing date: 2020-05-27), 10-K (filing date: 2020-03-25), 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28).


Five-Component Disaggregation of ROE

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

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
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 136.68% = 0.63 × 0.93 × 14.01% × 2.10 × 7.92
Jul 31, 2016 111.76% = 0.63 × 0.92 × 13.84% × 2.08 × 6.65
May 1, 2016 114.18% = 0.63 × 0.92 × 13.74% × 2.03 × 7.04
Jan 31, 2016 110.97% = 0.64 × 0.92 × 13.49% × 2.08 × 6.74
Nov 1, 2015 90.79% = 0.64 × 0.92 × 13.48% × 1.96 × 5.79
Aug 2, 2015 77.91% = 0.64 × 0.92 × 13.30% × 1.95 × 5.07
May 3, 2015 71.11% = 0.64 × 0.92 × 13.07% × 1.98 × 4.62
Feb 1, 2015 68.06% = 0.64 × 0.92 × 12.99% × 2.08 × 4.29
Nov 2, 2014 = × × × × 4.11
Aug 3, 2014 = × × × × 3.79
May 4, 2014 = × × × × 3.51

Based on: 10-Q (filing date: 2020-08-25), 10-Q (filing date: 2020-05-27), 10-K (filing date: 2020-03-25), 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28).


Two-Component Disaggregation of ROA

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

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
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 17.27% = 8.23% × 2.10
Jul 31, 2016 16.81% = 8.08% × 2.08
May 1, 2016 16.23% = 8.00% × 2.03
Jan 31, 2016 16.47% = 7.92% × 2.08
Nov 1, 2015 15.67% = 7.98% × 1.96
Aug 2, 2015 15.36% = 7.88% × 1.95
May 3, 2015 15.40% = 7.76% × 1.98
Feb 1, 2015 15.88% = 7.63% × 2.08
Nov 2, 2014 = ×
Aug 3, 2014 = ×
May 4, 2014 = ×

Based on: 10-Q (filing date: 2020-08-25), 10-Q (filing date: 2020-05-27), 10-K (filing date: 2020-03-25), 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2021 is the decrease in asset turnover ratio.


Four-Component Disaggregation of ROA

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

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
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 17.27% = 0.63 × 0.93 × 14.01% × 2.10
Jul 31, 2016 16.81% = 0.63 × 0.92 × 13.84% × 2.08
May 1, 2016 16.23% = 0.63 × 0.92 × 13.74% × 2.03
Jan 31, 2016 16.47% = 0.64 × 0.92 × 13.49% × 2.08
Nov 1, 2015 15.67% = 0.64 × 0.92 × 13.48% × 1.96
Aug 2, 2015 15.36% = 0.64 × 0.92 × 13.30% × 1.95
May 3, 2015 15.40% = 0.64 × 0.92 × 13.07% × 1.98
Feb 1, 2015 15.88% = 0.64 × 0.92 × 12.99% × 2.08
Nov 2, 2014 = × × ×
Aug 3, 2014 = × × ×
May 4, 2014 = × × ×

Based on: 10-Q (filing date: 2020-08-25), 10-Q (filing date: 2020-05-27), 10-K (filing date: 2020-03-25), 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2021 is the decrease 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 LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
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 8.23% = 0.63 × 0.93 × 14.01%
Jul 31, 2016 8.08% = 0.63 × 0.92 × 13.84%
May 1, 2016 8.00% = 0.63 × 0.92 × 13.74%
Jan 31, 2016 7.92% = 0.64 × 0.92 × 13.49%
Nov 1, 2015 7.98% = 0.64 × 0.92 × 13.48%
Aug 2, 2015 7.88% = 0.64 × 0.92 × 13.30%
May 3, 2015 7.76% = 0.64 × 0.92 × 13.07%
Feb 1, 2015 7.63% = 0.64 × 0.92 × 12.99%
Nov 2, 2014 = × ×
Aug 3, 2014 = × ×
May 4, 2014 = × ×

Based on: 10-Q (filing date: 2020-08-25), 10-Q (filing date: 2020-05-27), 10-K (filing date: 2020-03-25), 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28).

The primary reason for the increase in net profit margin ratio over Q2 2021 is the increase in operating profitability measured by EBIT margin ratio.