Home Depot Inc. (NYSE:HD)

The financial ratios over the reported quarters exhibit several notable trends and shifts. The analysis focuses primarily on turnover ratios, which reflect efficiency in asset and equity utilization.

Net Fixed Asset Turnover

This ratio shows a consistent upward trend from early 2020 through mid-2023. Starting around 4.84 in February 2020, it gradually increases to a peak near 6.23 by late 2022 and early 2023. Subsequently, a slight decline is observed during the mid to late 2023 quarters, with ratios around 5.84 to 5.98, followed by a modest rebound toward 6.14 by mid-2025. This pattern suggests improved efficiency in utilizing net fixed assets over the initial years, followed by a stabilization phase with minor fluctuations.

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

This adjusted metric similarly trends upward from 3.89 in early 2020 to near 4.95 in late 2022, confirming enhanced asset utilization including leased assets. However, from this peak, a gradual decline to approximately 4.48 occurs through 2023, indicating some reduction in efficiency or changes in lease-related assets. A slight recovery begins near 2024 and continues through mid-2025, signaling renewed operational adjustments affecting leased asset utilization.

Total Asset Turnover

The total asset turnover ratio presents a more volatile pattern. Commencing around 2.15 in early 2020, it falls sharply to roughly 1.87 by mid-2020. Thereafter, the ratio fluctuates mildly around 2.0 for several quarters. A notable and sustained decline occurs starting in late 2023, reaching a low close to 1.57 in early 2024. A modest recovery is seen afterward, with values near 1.65 by mid-2025. This suggests variability in overall asset efficiency, with potential impacts from asset base changes or sales performance fluctuations in 2023 and 2024.

Equity Turnover

The equity turnover ratio demonstrates extreme volatility and large magnitude swings. Values jump irregularly from moderate levels near 40-80 in early quarters to spikes over 140 and surpassing 650 at certain points. Such sharp fluctuations, including rapid declines to single digits by mid-2025, imply significant inconsistency or volatility in equity utilization, potentially driven by extraordinary events, structural equity changes, or data anomalies during the observed period.

In summary, efficiency in fixed asset utilization improved steadily through early 2023 for both owned and leased assets, with some easing afterward. Total asset turnover displayed more volatility with a pronounced drop post-2023, while equity turnover was highly erratic throughout, reflecting uncertain or fluctuating equity management dynamics. These patterns highlight the evolving asset management and operational effectiveness over the quarters analyzed.

Net Sales

Net sales demonstrated an overall upward trend from May 2019 through August 2025, despite some fluctuations across quarters. Initial figures around 26.38 billion USD in May 2019 increased substantially to over 38 billion USD by mid-2025. Notable peaks occurred in August 2020 (38.05 billion USD), August 2021 (41.12 billion USD), and again in August 2025 (45.28 billion USD). Sales showed some declines or stagnations in specific quarters, such as between November 2021 and January 2022, indicating possible seasonal or market influences. The more recent quarters demonstrate an overall strengthening sales performance, suggesting effective revenue growth strategies or positive market conditions.

Net Property and Equipment

The value of net property and equipment remained relatively stable but exhibited a slow and steady increase from May 2019 through August 2025. Starting from approximately 22.27 billion USD in May 2019, it increased to around 26.90 billion USD by August 2025. This gradual rise reflects ongoing investments in property and fixed assets, potentially to support sales growth or maintain operational capacity. The absence of sharp increases or decreases suggests a consistent asset management approach with moderate capital expenditure.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio showed progressive improvement over the observed periods, beginning at about 4.84 in February 2020 and reaching approximately 6.14 by August 2025. This ratio measures the efficiency in generating sales from net fixed assets, and its upward trajectory indicates increasing effectiveness in asset utilization. Peaks around mid-2024 and early 2025 suggest improved operational efficiency or enhanced sales relative to asset base during these times. The ratio demonstrates consistent growth with minor fluctuations, highlighting sustained optimization in capital asset deployment.

Summary Insights

The data indicates a company experiencing steady sales growth alongside a stable and gradually increasing asset base. Improvement in the net fixed asset turnover ratio further signifies enhanced conversion of asset investments into sales. The patterns suggest a balanced approach to asset management and revenue expansion. Occasional dips in sales could be influenced by external factors or seasonality but do not significantly alter the general positive trends. Overall, the financial trends point to effective operational management and growth-oriented capital investment strategies.

Net Sales

The net sales figures demonstrate a variable but generally upward trend over the analyzed periods. Initial sales were around 26,381 million USD, with fluctuations including notable increases in the mid and later periods, peaking near 45,277 million USD. There are intermittent declines following some peaks, indicating possible seasonality or market adjustments. The overall trajectory suggests growth with periods of contraction.

Net Property and Equipment

The net property and equipment values remained relatively stable throughout the period, fluctuating slightly around the 28,000 to 35,000 million USD range. A gradual increase is observable over time, with values moving from approximately 27,899 million USD to over 35,500 million USD in later periods. This steady increase indicates ongoing investment or asset acquisition, likely to support business operations.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio shows an initial rising trend, increasing from approximately 3.89 to a peak near 4.95, reflecting improved efficiency in generating sales from fixed assets. After reaching this peak, a gradual decline is observed, with the ratio falling to around 4.31 before slightly recovering to approximately 4.64 in the final periods. This pattern suggests that while the company initially improved asset utilization, recent periods indicate some reduction in turnover efficiency, possibly due to growing asset base or variations in sales performance.

The quarterly financial data reveals several notable trends and changes over the analyzed periods. Net sales exhibit considerable fluctuations with an overall upward trajectory accompanied by intermittent declines. Initial figures start around $26,381 million and rise to peaks exceeding $45,000 million in later periods. There are observable surges in sales particularly evident from mid-2020 to early 2022, followed by some volatility and stabilization above $39,000 million in the most recent periods.

Total assets demonstrate steady growth throughout the timeline. Starting near $51,515 million, total assets increase consistently, reaching upwards of $100,000 million by the final periods. This growth suggests ongoing investments and asset accumulation, with a more accelerated increase observable from mid-2023 onward, coinciding with the surge in net sales during earlier periods.

The total asset turnover ratio, available for a subset of periods, indicates fluctuating efficiency in asset utilization. Early readings around 2019 and 2020 range from about 1.87 to 2.15, reflecting fairly strong asset productivity. From late 2021 through early 2024, the ratio remains relatively stable near 2.0, signifying consistent operational performance in generating sales from assets. However, in the latest entries, a notable decline appears, dropping to around 1.57-1.66, which may imply a reduction in asset utilization efficiency despite asset growth.

Net Sales

Demonstrated an overall upward trend with some dips; peaked above $45 billion; showed resilience amid fluctuations.

Total Assets

Exhibited continuous growth from $51 billion to over $100 billion; acceleration observed in recent periods suggests expansion.

Total Asset Turnover

Maintained near 2.0 in most periods, indicating stable efficiency; recent declines to approximately 1.6 may point to less effective asset use.

In summary, sales growth and asset expansion are evident, but recent decreases in asset turnover ratio warrant monitoring. This may reflect shifts in operational effectiveness, capital allocation, or other external factors impacting the productivity of invested assets.

Net Sales

Net sales demonstrate a generally increasing trend over the analyzed periods, rising from approximately $26.4 billion in May 2019 to $45.3 billion in August 2025. There are notable fluctuations within this progression, with certain quarters reflecting declines, such as from August 2020 ($38.1 billion) to January 2021 ($32.3 billion) and from May 2021 ($37.8 billion) to August 2021 ($36.4 billion). However, the longer-term pattern is one of growth with peaks notably at August 2021, July 2022, July 2023, and August 2025, indicating strong seasonal or cyclical demand patterns.

Stockholders’ Equity (Deficit)

Stockholders’ equity shows a significant transformation over the timeframe. Initially, the company faced a negative equity position, reaching a low of approximately -$3.5 billion in May 2020. Subsequently, a steady recovery trend is evident, transitioning from negative to positive territory between August 2020 and November 2020 and continuing to increase through to August 2025, where it attains a value of approximately $10.7 billion. This improvement suggests enhanced financial stability and potential retention of earnings or capital injections during this period.

Equity Turnover Ratio

The equity turnover ratio exhibits substantial volatility and unusual values across the quarters. Early periods show missing data, and from January 31, 2021 onward, the ratio fluctuates dramatically, with an exceptionally high peak of 655.02, followed by a general declining trend to 15.48 by August 2025. Such volatility may indicate significant changes in either net sales or equity figures, or potential data irregularities in measurement or reporting. The high turnover values suggest intense usage of equity to generate sales during certain quarters, but the sharp decline towards the end of the period points to either an increase in equity base or a normalization of sales activity relative to equity.

Overall Insights

The data portrays a company undergoing notable financial recovery and growth. Increasing net sales alongside the substantial recovery from negative to strongly positive stockholders’ equity highlight an improving financial position. Equity turnover volatility warrants further investigation to clarify underlying causes and ensure accurate interpretation. The overall trajectory indicates strengthening operational and financial performance across the examined quarters.