Analysis of Geographic Areas
Home Depot Inc. operates in 2 regions: In the U.S. and Outside the U.S..
Area Asset Turnover
Home Depot Inc., asset turnover by geographic area
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|---|
| In the U.S. | 6.08 | 6.00 | 6.28 | 6.12 | 5.50 | 4.99 |
| Outside the U.S. | 4.98 | 4.48 | 4.88 | 4.89 | 3.98 | 3.60 |
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).
- In the U.S. Asset Turnover
- The asset turnover ratio for the U.S. segment exhibits a generally upward trend from 4.99 in February 2020 to a peak of 6.28 in January 2023. After reaching this peak, there is a slight decline to 6.00 in January 2024, followed by a modest recovery to 6.08 in February 2025. This indicates an overall improvement in the efficiency of asset utilization in the U.S. over the five-year period, with some fluctuations in the last two years.
- Outside the U.S. Asset Turnover
- The asset turnover ratio for operations outside the U.S. shows consistent growth from 3.60 in February 2020 to 4.89 in January 2022. This improvement stabilizes with a minor dip from 4.89 in January 2022 to 4.88 in January 2023, followed by a decline to 4.48 in January 2024. However, in February 2025, the ratio rises again to 4.98. Overall, the data reflects an increasing trend in asset turnover outside the U.S. albeit with greater volatility compared to the U.S. segment.
- Comparative Insights
- The U.S. asset turnover ratios consistently outperform those outside the U.S. throughout the period analyzed. Both regions show upward momentum initially but encounter some declines beginning in 2023. The U.S. segment displays more stability in recovery following its dip, while the outside U.S. region experiences greater fluctuation. These patterns suggest comparatively stronger asset utilization efficiency at home with more pronounced variability in international operations.
Area Asset Turnover: In the U.S.
Home Depot Inc.; In the U.S.; area asset turnover calculation
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 147,007) | 140,083) | 144,840) | 138,920) | 122,158) | 101,333) |
| Net property and equipment | 24,193) | 23,347) | 23,057) | 22,696) | 22,205) | 20,302) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 6.08 | 6.00 | 6.28 | 6.12 | 5.50 | 4.99 |
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).
1 2025 Calculation
Area asset turnover = Net sales ÷ Net property and equipment
= 147,007 ÷ 24,193 = 6.08
- Net Sales
- The net sales have demonstrated a consistent upward trend from 2020 through 2025, increasing from $101,333 million in 2020 to $147,007 million in 2025. The growth was particularly notable between 2020 and 2021, with a substantial increase of approximately 20.5%. The following years maintained steady growth, although there was a slight reduction in growth rate between 2023 and 2024, where sales fell marginally from $144,840 million to $140,083 million, before rising again in 2025.
- Net Property and Equipment
- The net property and equipment value also showed an increasing pattern over the six-year span. Beginning at $20,302 million in 2020, it rose to $24,193 million by 2025. This increment was steady and gradual with slight annual increases, indicating a continued investment in physical assets reflecting possible expansion or maintenance of operational capacity.
- Area Asset Turnover
- Area asset turnover ratio depicted an overall positive trajectory, moving upward from 4.99 in 2020 to 6.08 in 2025. The ratio peaked in 2023 at 6.28 before declining slightly to 6.00 in 2024 and then increasing again in 2025. This suggests improved efficiency in utilizing assets to generate sales, with a brief dip indicating a potential temporary slowdown in asset utilization efficiency in the fourth year.
- Summary Insights
- The data indicate overall positive business performance with growth in sales accompanied by incremental increases in asset base. The area asset turnover ratio's upward trend suggests increasingly effective use of assets to drive sales, although the minor fluctuation in 2024 points to a short-term variation in operational efficiency. The mild sales decrease in 2024, paired with a temporary dip in asset turnover, might warrant further investigation to identify underlying causes. Nonetheless, the recovery in 2025 for both sales and asset turnover ratio indicates a return to improved performance.
Area Asset Turnover: Outside the U.S.
Home Depot Inc.; Outside the U.S.; area asset turnover calculation
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 12,507) | 12,586) | 12,563) | 12,237) | 9,952) | 8,892) |
| Net property and equipment | 2,509) | 2,807) | 2,574) | 2,503) | 2,500) | 2,468) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 4.98 | 4.48 | 4.88 | 4.89 | 3.98 | 3.60 |
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).
1 2025 Calculation
Area asset turnover = Net sales ÷ Net property and equipment
= 12,507 ÷ 2,509 = 4.98
- Net Sales
- Net sales in the geographic area outside the U.S. show a consistent upward trend from February 2020 to January 2024, increasing from $8,892 million to $12,586 million. The growth appears steady but slows slightly in the final period ending February 2025, with sales marginally decreasing to $12,507 million.
- Net Property and Equipment
- The value of net property and equipment exhibits slight fluctuations over the period analyzed. It initially rises from $2,468 million in February 2020 to a peak of $2,807 million in January 2024. However, the figure then declines sharply to $2,509 million by February 2025. This pattern suggests a period of investment or expansion in property and equipment followed by divestment or depreciation in the latest period.
- Area Asset Turnover
- The area asset turnover ratio shows a generally positive trajectory, increasing from 3.6 in February 2020 to a peak of 4.98 in February 2025. Notably, this ratio rises markedly between January 2021 and January 2022, reaching 4.89, and remains relatively stable thereafter with a small dip in January 2024. The improvement in this ratio indicates enhanced efficiency in utilizing assets to generate sales over the analyzed timeframe.
- Summary of Trends
- The overall data reflects strengthening sales performance outside the U.S. until early 2024, accompanied by fluctuating investments in property and equipment. The increase in asset turnover ratio denotes improved operational efficiency in this geographic segment. The slight decline in net sales and net property and equipment in the last reported period could imply a strategic consolidation or market challenge requiring closer examination.
Net property and equipment
Home Depot Inc., net property and equipment by geographic area
US$ in millions
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|---|
| In the U.S. | 24,193) | 23,347) | 23,057) | 22,696) | 22,205) | 20,302) |
| Outside the U.S. | 2,509) | 2,807) | 2,574) | 2,503) | 2,500) | 2,468) |
| Total | 26,702) | 26,154) | 25,631) | 25,199) | 24,705) | 22,770) |
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).
- Overall Trend in Net Property and Equipment
- The total net property and equipment exhibits a steady upward trend over the six-year period, increasing from $22,770 million in fiscal 2020 to $26,702 million in fiscal 2025. This reflects a cumulative growth of approximately 17.3% during this timeframe.
- U.S. Geographic Area Analysis
- The U.S. segment consistently represents the largest portion of net property and equipment values. Starting at $20,302 million in fiscal 2020, it shows a generally steady increase through the years, reaching $24,193 million by fiscal 2025. The growth trend appears stable with moderate increments year-over-year, indicating ongoing investments or asset acquisitions in the U.S. market.
- Outside the U.S. Geographic Area Analysis
- Values outside the U.S. start at $2,468 million in fiscal 2020 and demonstrate a relatively flat trajectory with minor fluctuations. There is a mild increase up to $2,807 million in fiscal 2024, followed by a decrease to $2,509 million in fiscal 2025. This variation suggests fluctuating investment or asset valuation in non-U.S. markets, potentially reflecting regional challenges or strategic adjustments.
- Comparative Observations
- The U.S. area consistently accounts for roughly 85-90% of total net property and equipment value, highlighting its dominant role in the asset base. The relatively higher volatility outside the U.S. compared to the steady increase domestically may indicate differing market conditions or capital allocation priorities between geographic regions.
- Summary Insights
- Overall, the data reveals a solid commitment to maintaining and expanding physical assets primarily within the U.S., accompanied by modest and less consistent investments internationally. The total asset base has expanded steadily, signaling ongoing capital expenditure or asset replenishment over the examined period.
Net sales
Home Depot Inc., net sales by geographic area
US$ in millions
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|---|
| In the U.S. | 147,007) | 140,083) | 144,840) | 138,920) | 122,158) | 101,333) |
| Outside the U.S. | 12,507) | 12,586) | 12,563) | 12,237) | 9,952) | 8,892) |
| Total | 159,514) | 152,669) | 157,403) | 151,157) | 132,110) | 110,225) |
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).
The analysis of the annual geographic area net sales data reveals distinct trends in both the U.S. and international markets over the observed periods.
- U.S. Market Sales
- Net sales within the U.S. exhibit a consistent upward trajectory from February 2, 2020, through February 2, 2025, increasing from $101,333 million to $147,007 million. This represents a significant growth trend, with the most pronounced growth occurring between 2020 and 2023. A slight decline is observed in the period ending January 28, 2024, where sales decrease from $144,840 million to $140,083 million, before resuming growth in the following period.
- International Market Sales
- Sales outside the U.S. demonstrate steady growth from $8,892 million in 2020 to a peak of $12,586 million in 2024. However, the data indicates a minor decline in the period ending February 2, 2025, with net sales decreasing slightly to $12,507 million. Despite this small decrease, the general trend over the six-year span is one of expansion.
- Total Net Sales
- The total net sales, combining U.S. and international figures, mirror the trends observed in the individual segments with a steady increase from $110,225 million in 2020 to $159,514 million in 2025. The total sales reached a high point in the early months of 2023 at $157,403 million, followed by a dip in 2024 to $152,669 million, before climbing again in 2025.
Overall, the data indicates robust growth predominantly driven by U.S. market sales, supported by steady international growth. The slight declines observed in 2024 in both geographic areas and consequently total sales may warrant further investigation to understand underlying causes.