Home Depot Inc. (NYSE:HD)

The financial data reveals several distinct trends across various turnover ratios from mid-2019 through mid-2025.

Net Fixed Asset Turnover

This metric demonstrates a general upward trend starting from a value of 4.84 in early 2020 and peaking around 6.23 during late 2022. After this peak, the ratio slightly declines but remains relatively stable around the mid-5 range through mid-2025. This suggests an increasing efficiency in generating sales from fixed assets over time, with a minor decline observed in recent quarters.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

The ratio follows a somewhat similar pattern but at lower absolute values compared to net fixed asset turnover alone. It climbs from 3.89 in early 2020 to approximately 4.95 by late 2022, before experiencing a gradual decline to around 4.31 - 4.59 in subsequent quarters. This indicates that when accounting for leased assets, asset efficiency increased until late 2022 and slightly decreased afterward.

Total Asset Turnover

Total asset turnover shows more variability. Initially starting around 2.15 in early 2020, it dips to roughly 1.87 in mid-2020, then recovers to about 2.10 in the first half of 2021. Following this period, a gradual downward trend is visible, with the ratio decreasing to approximately 1.59-1.66 by early 2025. The decline suggests a reduction in overall asset utilization efficiency in generating sales over the latter part of the timeframe.

Equity Turnover

Equity turnover presents highly volatile and irregular values with several extreme spikes, such as 655.02 in early 2023 and other substantial fluctuations ranging between 20 and over 140 in various periods. This volatility may reflect inconsistent equity base levels, share repurchases, or large swings in sales relative to equity. No clear trend emerges due to this irregular pattern, implying potential episodic events affecting equity efficiency rather than a steady operational trend.

In summary, asset-related turnover ratios indicate improved fixed asset efficiency up to late 2022, followed by a modest retreat. Total asset turnover reflects a slight decline in efficiency after 2021. Equity turnover is marked by significant variability, suggesting episodic financial changes rather than a consistent operational pattern.

The analysis of the quarterly financial data reveals several notable trends in the company’s operational performance and asset utilization over the observed periods.

Net Sales

The net sales figures show considerable fluctuations across the quarters. Initially, sales increased from 26,381 million US dollars in May 2019 to a peak of 38,053 million in August 2020. Following this peak, sales demonstrated volatility with periods of both decline and growth. For example, there was a decrease to 35,719 million in January 2022 after prior increases, followed by a rebound to approximately 43,175 million in July 2024. Overall, the net sales trend indicates growth with intermittent contractions, suggesting variability potentially influenced by market conditions or seasonal factors.

Net Property and Equipment

The net property and equipment asset base showed a steady and gradual increase over the entire period. Starting at 22,270 million US dollars in May 2019, the figure rose incrementally to reach around 26,780 million by May 2025. This steady asset base growth suggests continued investment and maintenance in physical assets, supporting operational capacity expansion or modernization.

Net Fixed Asset Turnover

The net fixed asset turnover ratio, reflecting how efficiently the company utilizes its fixed assets to generate sales, displayed an upward trend from the earliest reported ratio of 4.84 in February 2020, peaking above 6.20 in the period around January 2023. Post-peak, the ratio showed slight declines and moderate fluctuations but stayed in the range of approximately 5.7 to 6.1. The overall increase in turnover ratio suggests improvement in asset utilization efficiency, although the recent stabilization and minor declines may signal emerging challenges in sustaining this operational efficiency.

In summary, net sales experienced strong growth with periods of volatility, the net property and equipment base steadily expanded over time, and asset turnover ratios indicate improved effectiveness in using fixed assets to drive sales with some recent softening. The interplay of these trends may reflect the company’s strategic investment in assets coupled with fluctuating market demand and operational adjustments.

The quarterly financial data reveals several notable trends in the company's operations, particularly in net sales, net property and equipment, and the efficiency measure represented by net fixed asset turnover.

Net Sales

Net sales exhibit considerable fluctuations over the observed periods. Initially, sales increased from approximately 26.4 billion USD in early 2019 to over 38 billion USD by mid-2020, indicating a strong growth trajectory. However, this growth was followed by alternating periods of decline and recovery, with sales peaking again around 43.2 billion USD in mid-2024. The pattern suggests cyclical influences or seasonal effects impacting revenue, with an overall upward trend over the longer term despite intermittent declines.

Net Property and Equipment

The net property and equipment asset base shows a general upward trend throughout the periods analyzed, starting at just under 28 billion USD and increasing steadily to approximately 35.5 billion USD by mid-2025. This steady growth indicates ongoing investment in physical assets or capital improvements, likely supporting operational capacity expansion or maintenance. Despite minor fluctuations, the asset base remained relatively stable without sharp declines, reflecting consistent capital management.

Net Fixed Asset Turnover

The net fixed asset turnover ratio, calculated starting from early 2020, displays an overall declining trend after an initial period of improvement. Early in the recorded timeframe, this ratio rose from about 3.89 to a peak near 4.95, indicating improving efficiency in using fixed assets to generate sales. Following this peak, the ratio gradually decreased to around 4.31-4.59 by 2025, suggesting a slight decline in asset utilization efficiency over time. This reduction could imply that sales growth did not keep pace with the expansion in fixed assets or that asset productivity faced pressures.

In summary, the data depicts a company experiencing overall sales growth supported by increased capital investment. However, there is some indication that the efficiency of asset use to drive sales peaked and subsequently diminished modestly. Monitoring these dynamics will be essential for optimizing future capital allocation and sales strategies.

Net Sales

The net sales exhibit notable variability but generally show an upward trajectory over the analyzed periods. Starting at approximately $26.4 billion in May 2019, sales increased significantly during mid-2020, peaking around $41.1 billion in August 2021. After this peak, a decline is observed with sales fluctuating between $34.7 billion and $43.0 billion. Most recent quarters reveal a stabilization near $39.8 billion. The pattern highlights periods of substantial growth followed by modest contractions, reflecting possible seasonal effects or changing market dynamics.

Total Assets

Total assets steadily increased from around $51.5 billion in May 2019 to a peak of about $96.8 billion by October 2024. This consistent growth points to ongoing asset accumulation, possibly reflecting investments or capital expenditures. Minor fluctuations appear in late 2024 and early 2025, but overall the asset base more than doubled across the full timeline, indicating considerable expansion or asset revaluation.

Total Asset Turnover

The total asset turnover ratio was recorded starting in early 2020, with an initial value of 2.15. Subsequently, it declined gradually to about 1.87–1.91 through much of 2020, suggesting lower efficiency in generating sales from assets during this time. Thereafter, it rebounded to near 2.1 during 2021 and early 2022, indicating improved asset utilization. Post-2022, the ratio exhibits a downward trend, dropping to around 1.57 by late 2024, implying decreasing asset efficiency relative to sales despite the growing asset base. This decline may signal changes in operational effectiveness or a strategic increase in assets not immediately contributing to revenue.

The net sales exhibit noticeable fluctuations over the quarterly periods presented. From May 2019 to early 2020, sales varied modestly, with values generally ranging between approximately US$25 billion to US$31 billion. Beginning in mid-2020, a significant surge is evident, peaking around August 2020 with sales surpassing US$38 billion. This elevated level continues into early 2021, after which sales experience some variability but generally stabilize at a higher range compared to the initial periods, mostly between US$35 billion and US$43 billion. The trend indicates a strong sales recovery and growth starting mid-2020, potentially linked to external market conditions or strategic initiatives, with more recent quarters showing sustained high sales volumes.*

Stockholders’ equity demonstrates considerable volatility throughout the timeline. Initially, the company reported negative equity values from May 2019 through mid-2020, reaching a low near -US$3.5 billion around May 2020. From late 2020 onward, a consistent upward trend emerges, transitioning into positive territory and increasing steadily. By early 2021, equity shifts to positive figures around US$1.5 billion and continues to appreciate, ultimately reaching approximately US$7.9 billion by the latest quarter in May 2025. This improvement suggests enhanced financial stability and accumulation of shareholder value over time.*

The equity turnover ratio is only sporadically available but displays extremely high levels in the periods reported. The ratios fluctuate significantly, with peaks reaching as high as 655 in a single quarter and other quarters showing values well over 100. Despite the inconsistent data points, the elevated ratio values imply a high level of sales generated per unit of equity during those quarters. However, the notable variance and sparse availability of this metric limit definitive conclusions about its long-term trend or operational efficiency.*

Summary of Trends:

Net sales increased sharply starting mid-2020, maintaining higher levels through to 2025, reflecting growth momentum.

Stockholders’ equity shifted from negative to strongly positive values over the periods, indicating improved financial health.

Equity turnover data is limited and highly volatile, suggesting fluctuations in capital efficiency though reliability is constrained by data gaps.