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 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| In the U.S. | 6.05 | 6.08 | 6.00 | 6.28 | 6.12 | 5.50 |
| Outside the U.S. | 4.34 | 4.98 | 4.48 | 4.88 | 4.89 | 3.98 |
Based on: 10-K (reporting date: 2026-02-01), 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).
Asset turnover ratios for the specified geographic areas demonstrate distinct trends over the observed period. The U.S. segment consistently exhibits a higher ratio than the outside the U.S. segment, indicating a more efficient utilization of assets in generating sales within the domestic market.
- U.S. Asset Turnover
- The asset turnover ratio for the U.S. area increased from 5.50 in 2021 to 6.28 in 2023, representing a period of improvement in asset utilization. A slight decrease to 6.00 was noted in 2024, followed by a recovery to 6.08 in 2025. The ratio remains relatively stable at 6.05 for 2026. This suggests a generally efficient operation with minor fluctuations potentially attributable to economic conditions or internal strategic shifts.
- Outside the U.S. Asset Turnover
- The asset turnover ratio for areas outside the U.S. showed a substantial increase from 3.98 in 2021 to 4.89 in 2022, indicating improved asset efficiency. While remaining relatively stable at 4.88 in 2023, a decrease to 4.48 was observed in 2024. A partial recovery to 4.98 occurred in 2025, but this was followed by a further decline to 4.34 in 2026. This pattern suggests potential challenges in maintaining consistent asset utilization in international markets, possibly due to varying economic conditions, market-specific factors, or operational complexities.
- Comparative Trends
- The difference between the U.S. and outside the U.S. asset turnover ratios widened between 2021 and 2023, then narrowed slightly in 2024 before widening again in 2025 and 2026. This indicates that the U.S. segment’s asset efficiency is improving at a faster rate, or declining at a slower rate, than that of the international segment. The recent decline in the outside the U.S. ratio warrants further investigation to identify the underlying causes and potential mitigation strategies.
Overall, the asset turnover ratios suggest a stronger and more consistent performance in the U.S. market compared to international operations. The fluctuations observed in the outside the U.S. ratio highlight the need for ongoing monitoring and analysis to optimize asset utilization and improve operational efficiency in those regions.
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Area Asset Turnover: In the U.S.
Home Depot Inc.; In the U.S.; area asset turnover calculation
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 152,170) | 147,007) | 140,083) | 144,840) | 138,920) | 122,158) |
| Net property and equipment | 25,139) | 24,193) | 23,347) | 23,057) | 22,696) | 22,205) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 6.05 | 6.08 | 6.00 | 6.28 | 6.12 | 5.50 |
Based on: 10-K (reporting date: 2026-02-01), 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).
1 2026 Calculation
Area asset turnover = Net sales ÷ Net property and equipment
= 152,170 ÷ 25,139 = 6.05
The financial performance related to asset utilization within the U.S. geographic area demonstrates a generally positive trend over the observed period, with some recent stabilization. Net sales exhibited consistent growth from 2021 through 2023, followed by a slight decrease in 2024 and subsequent increases in the projected years of 2025 and 2026. Net property and equipment also increased steadily throughout the period, though at a slower rate than sales.
- Area Asset Turnover
- The area asset turnover ratio increased from 5.50 in 2021 to a peak of 6.28 in 2023, indicating improving efficiency in generating sales from assets. This suggests the company was becoming more effective at converting its investments in property and equipment into revenue. A slight decrease to 6.00 was observed in 2024, coinciding with the dip in net sales. The ratio then recovered to 6.08 in 2025 and remained relatively stable at 6.05 in 2026. This stabilization suggests that while further significant gains in asset turnover may be challenging to achieve, the company is maintaining a strong level of asset utilization.
The consistent growth in net property and equipment, coupled with the increasing, then stabilizing, asset turnover ratio, suggests a strategic investment in assets that initially yielded substantial improvements in sales generation. The recent stabilization of the ratio, despite continued sales growth, may indicate a point of diminishing returns or a shift in investment strategy. Further investigation into the composition of net property and equipment and the drivers of sales growth would be beneficial to understand these dynamics.
Overall, the U.S. area asset turnover demonstrates a healthy and efficient use of assets, with a strong performance trend over the analyzed timeframe. The recent stabilization warrants monitoring to ensure continued optimal asset allocation and utilization.
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Area Asset Turnover: Outside the U.S.
Home Depot Inc.; Outside the U.S.; area asset turnover calculation
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 12,513) | 12,507) | 12,586) | 12,563) | 12,237) | 9,952) |
| Net property and equipment | 2,882) | 2,509) | 2,807) | 2,574) | 2,503) | 2,500) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 4.34 | 4.98 | 4.48 | 4.88 | 4.89 | 3.98 |
Based on: 10-K (reporting date: 2026-02-01), 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).
1 2026 Calculation
Area asset turnover = Net sales ÷ Net property and equipment
= 12,513 ÷ 2,882 = 4.34
The financial performance of assets outside the U.S. demonstrates a fluctuating pattern over the observed period. Net sales exhibited consistent growth from 2021 to 2023, followed by a slight decrease in 2024 and a minimal increase in 2025 and 2026. Simultaneously, net property and equipment experienced a more pronounced increase, particularly between 2022 and 2024, with a decrease in 2025 before rising again in 2026. These movements influence the area asset turnover ratio, which reflects the efficiency with which assets are utilized to generate sales.
- Net Sales Trend
- Net sales increased from US$9,952 million in 2021 to US$12,563 million in 2023, representing a substantial growth phase. This growth plateaued in 2024 at US$12,586 million and experienced a minor decline to US$12,507 million in 2025. Sales showed a slight recovery in 2026, reaching US$12,513 million. The overall trend suggests a mature market with limited potential for significant sales expansion in recent years.
- Net Property and Equipment Trend
- Net property and equipment remained relatively stable between 2021 and 2022, at US$2,500 million and US$2,503 million respectively. A noticeable increase occurred in 2023, reaching US$2,574 million, followed by a more significant rise to US$2,807 million in 2024. A decrease to US$2,509 million was observed in 2025, before increasing again to US$2,882 million in 2026. This suggests strategic investments in property and equipment, potentially to support anticipated sales growth, followed by possible asset rationalization or depreciation, and then further investment.
- Area Asset Turnover Ratio
- The area asset turnover ratio initially increased from 3.98 in 2021 to 4.89 in 2022, indicating improved asset utilization. The ratio remained high in 2023 at 4.88, before decreasing to 4.48 in 2024. A rebound was seen in 2025, with the ratio reaching 4.98, but it declined again to 4.34 in 2026. This fluctuation suggests that while asset utilization was strong in the earlier part of the period, it has become less consistent, potentially due to the increasing investment in net property and equipment not immediately translating into proportional sales growth. The ratio’s decline in 2024 and 2026 warrants further investigation to determine the underlying causes, such as inefficiencies in asset management or a slowdown in sales relative to asset investment.
In conclusion, the area asset turnover ratio demonstrates a complex relationship with both net sales and net property and equipment. While sales have shown moderate growth, the increasing investment in assets has not consistently resulted in improved asset turnover, indicating a potential need for optimization of asset utilization strategies.
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Net property and equipment
Home Depot Inc., net property and equipment by geographic area
US$ in millions
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| In the U.S. | 25,139) | 24,193) | 23,347) | 23,057) | 22,696) | 22,205) |
| Outside the U.S. | 2,882) | 2,509) | 2,807) | 2,574) | 2,503) | 2,500) |
| Total | 28,021) | 26,702) | 26,154) | 25,631) | 25,199) | 24,705) |
Based on: 10-K (reporting date: 2026-02-01), 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).
Net property and equipment demonstrates a consistent upward trend across all geographic segments examined between January 31, 2021, and February 1, 2026. The rate of increase, however, varies between the U.S. and areas outside the U.S.
- U.S. Net Property and Equipment
- The value of net property and equipment within the U.S. increased steadily from US$22,205 million in 2021 to US$25,139 million in 2026. The growth appears relatively linear, with annual increases ranging from approximately US$300 million to US$846 million. This suggests a consistent investment in property, plant, and equipment within the U.S. market.
- Outside U.S. Net Property and Equipment
- Net property and equipment outside the U.S. also increased over the period, moving from US$2,500 million in 2021 to US$2,882 million in 2026. However, the growth pattern is less consistent than in the U.S. A modest increase was observed between 2021 and 2022, followed by more substantial growth in 2023 and 2024. A decrease is noted in 2025 to US$2,509 million before recovering in 2026. This fluctuation may indicate strategic shifts in capital allocation or divestitures/acquisitions in international markets.
- Total Net Property and Equipment
- Total net property and equipment, combining both geographic areas, rose from US$24,705 million in 2021 to US$28,021 million in 2026. The overall trend mirrors the growth observed in the U.S. segment, demonstrating a sustained commitment to expanding fixed assets. The combined effect of the U.S. and international investments drives this overall increase.
The proportion of total net property and equipment located in the U.S. remains significantly higher than that outside the U.S. throughout the examined period, consistently representing approximately 88-90% of the total. The fluctuations in the international segment, while smaller in absolute terms, warrant further investigation to understand the underlying drivers of these changes.
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Net sales
Home Depot Inc., net sales by geographic area
US$ in millions
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|---|
| In the U.S. | 152,170) | 147,007) | 140,083) | 144,840) | 138,920) | 122,158) |
| Outside the U.S. | 12,513) | 12,507) | 12,586) | 12,563) | 12,237) | 9,952) |
| Total | 164,683) | 159,514) | 152,669) | 157,403) | 151,157) | 132,110) |
Based on: 10-K (reporting date: 2026-02-01), 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).
Net sales exhibited distinct trends across geographic areas over the analyzed period. Sales within the U.S. demonstrated a generally positive trajectory, though with some fluctuation. International sales, while growing initially, showed a stabilization in later periods.
- U.S. Net Sales
- U.S. net sales increased from US$122,158 million in 2021 to US$138,920 million in 2022, representing a substantial year-over-year growth. This upward trend continued into 2023, reaching US$144,840 million. However, 2024 saw a slight decrease to US$140,083 million. The trend resumed positively in 2025, with sales reaching US$147,007 million, and continued to grow in 2026 to US$152,170 million. The overall period indicates a strong, albeit uneven, growth pattern for U.S. sales.
- International Net Sales
- Net sales outside the U.S. increased from US$9,952 million in 2021 to US$12,237 million in 2022, and further to US$12,563 million in 2023. However, growth slowed considerably in 2024, with sales at US$12,586 million. This pattern of limited growth continued in 2025 and 2026, with sales reported at US$12,507 million and US$12,513 million respectively. This suggests a plateauing of international sales after initial expansion.
- Total Net Sales
- Total net sales mirrored the trend of U.S. sales, with overall growth observed throughout the period. Total sales increased from US$132,110 million in 2021 to US$151,157 million in 2022, US$157,403 million in 2023, and then decreased slightly to US$152,669 million in 2024. Growth resumed in 2025, reaching US$159,514 million, and continued to US$164,683 million in 2026. The U.S. market appears to be the primary driver of overall net sales performance.
- Geographic Contribution
- The U.S. consistently accounted for the vast majority of total net sales throughout the analyzed period. The contribution from areas outside the U.S. remained relatively stable, representing approximately 7-8% of total net sales. The limited growth in international sales suggests a potential area for strategic focus if broader revenue diversification is desired.
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