Home Depot Inc. (NYSE:HD)

Gross Profit Margin

The gross profit margin shows a slight decreasing trend over the periods from May 2020 onward. Starting at 34.09%, it gradually declines to around 33.35% by August 2025. The margin remains relatively stable with minor fluctuations, indicating a consistent cost of goods sold relative to revenue but with a gradual erosion in profitability at the gross profit level.

Operating Profit Margin

The operating profit margin also exhibits a decreasing pattern over time. After a modest dip from 14.37% in May 2020 to 13.84% in May 2021, it rebounds and peaks near 15.33% in January 2023. However, from that point, the margin declines again, falling to 13.09% by August 2025. This pattern suggests variable operational efficiency and/or expense management impacting profitability before interest and taxes.

Net Profit Margin

Net profit margin follows a similar course with fluctuations. It starts from 10.20% in May 2020, increases to just under 10.88% in January 2023, and then gradually declines toward 8.86% by August 2025. The margin's rise and fall may reflect changes in non-operating items, tax expenses, or extraordinary events affecting the bottom line profitability.

Return on Equity (ROE)

The ROE data presents significant volatility and irregular values, including extremely high figures such as 813.68% and 7124.47% at certain points, interspersed with missing data. This inconsistency suggests the presence of abnormal accounting events, changes in equity base, or reporting anomalies, making it difficult to infer a reliable trend. After the peak values, ROE generally declines but remains elevated compared to typical levels, indicating periods of exceptional returns on shareholders' equity.

Return on Assets (ROA)

Return on assets exhibits an initial decline from 21.94% in May 2020 to a low near 18.23% in early 2021, followed by a rebound to approximately 22.86% by October 2021. Subsequently, it trends downward steadily to about 14.62% by August 2025. The ROA variation indicates changing asset efficiency and profitability, with stronger utilization in the earlier periods and gradual reduction in later years.

The financial data demonstrates a series of trends in gross profit, net sales, and gross profit margin over the observed quarterly periods.

Gross Profit

Gross profit shows a fluctuating pattern with generally increasing peaks over time. Starting around 9,017 million US dollars, it reached a high of 15,125 million US dollars in the last recorded quarter. This indicates an overall growth trajectory in gross profit despite intermittent declines in some quarters.

Net Sales

Net sales exhibit a broadly upward trend, with some volatility. Initial values near 26,381 million US dollars increase to peaks above 43,000 million US dollars in multiple quarters, indicating increased revenue generation capacity. The data suggest strong sales performance growth across the time periods, aligned broadly with the gross profit increases.

Gross Profit Margin

The gross profit margin remains relatively stable throughout the quarters, fluctuating narrowly around 33.3% to 34.1%. This stability suggests consistent cost management relative to sales despite the absolute growth in gross profit and net sales.

Overall, the company demonstrates effective scaling capabilities with rising gross profit and net sales, accompanied by a steady gross profit margin. This combination reflects a capacity to grow revenue while maintaining efficient production or procurement costs relative to sales. Periodic dips in absolute values indicate some fluctuations but do not materially affect the long-term positive trend visible in these core financial indicators.

The financial data reveals several notable trends in operating income, net sales, and operating profit margin over the observed periods.

Operating Income

Operating income exhibits a pattern of volatility with intermittent peaks and troughs. Starting at 3,597 million USD in May 2019, there is a visible increase reaching a peak of 6,639 million USD by August 2021. This peak is followed by fluctuations, with values oscillating between approximately 4,100 million USD and 6,500 million USD in subsequent quarters. Most recently, operating income stands at 6,555 million USD in August 2025, reflecting resilience and recovery after prior dips.

Net Sales

Net sales consistently show an upward trajectory throughout the periods, indicating growth in revenue. Beginning at 26,381 million USD in May 2019, net sales generally increase, with some periods of slight decline. Significant growth is observed from 28,260 million USD in May 2020 to a peak around 43,175 million USD in July 2024. The latest figures maintain levels above 39,000 million USD, demonstrating sustained revenue strength.

Operating Profit Margin

Operating profit margin data is available from February 2020 onwards, revealing stability with minor variations. Margins start near 14.37% and gradually improve, peaking around 15.33% in January 2023. Subsequently, there is a gentle decline, stabilizing around mid-13% by August 2025. The margin trends suggest effective cost control during growth phases but increased pressure on profitability in the most recent periods.

Overall Insights

The company experienced substantial revenue growth over the entire timeframe, facilitated by fluctuations in operating income and a generally stable operating margin. The increase in net sales is a positive indicator, although profit margin compression in later periods may point to rising operational costs or competitive pressures. Consistency in operating margin near the mid-teens percentage range suggests operational efficiency, but vigilance is necessary to address recent downward margin trends.

The financial data reveals several notable trends over the examined periods concerning net earnings, net sales, and net profit margin.

Net Earnings

The net earnings exhibit variability but demonstrate a generally cyclical pattern with notable peaks and declines. Initial figures around 2,500 to 3,500 million USD fluctuate until mid-2020, after which a substantial increase occurs, reaching above 5,000 million USD by mid-2022. Subsequent periods show oscillations with decreases around early 2023, followed by recovery phases. The latest data suggests a downward movement again, with net earnings dropping below earlier peak levels. This pattern indicates possible seasonality or external factors affecting profitability.

Net Sales

Net sales trend upward over the periods with certain dips reflecting the fluctuations seen in net earnings. Starting from approximately 26,000 million USD in mid-2019, there is a significant jump to over 38,000 million USD by mid-2020, followed by continued growth reaching peaks above 43,000 million USD in mid-2021 and again in mid-2024. Despite periodic declines, the overall trajectory is positive, suggesting expanding revenue generation capabilities. The increases are relatively consistent, although some quarterly decreases hint at possible market or operational challenges.

Net Profit Margin

The net profit margin remains fairly stable throughout the observed quarters, maintaining levels mostly between 9.0% and 11.0%. Early data points are missing, but from early 2020 onwards the margin hovers near 10%, peaking slightly above 10.8% in several quarters. The margin shows a gradual slight decline towards the latest periods, falling below 9% by the last recorded quarter. This gradual decrease may reflect rising costs or less efficient operations despite increased sales.

Overall, the data indicates that while the company has experienced growth in net sales and periods of increased net earnings, profitability margins have slightly eroded over time. The cyclical nature of net earnings and occasional dips in sales suggest external or internal factors affecting financial performance periodically. Continued monitoring would be necessary to assess if the downward trend in profit margin persists and to identify the drivers behind the fluctuations in earnings and sales.

Net Earnings

The net earnings exhibit notable volatility throughout the observed periods. Initially, earnings fluctuate between approximately 2,200 and 3,500 million US dollars, with a significant peak of 4,807 million in August 2021. Following this peak, earnings demonstrate a cyclical pattern, alternating between increases and decreases but maintaining a range generally between 2,800 and 5,100 million. The data reflects sustained profitability with periodic spikes, indicating possible influences from seasonal factors or operational cycles.

Stockholders’ Equity (Deficit)

The stockholders’ equity data reveals a dramatic transformation over the analyzed timeline. The early periods are characterized by a negative equity balance, reaching as low as approximately -3,490 million US dollars. Starting around November 2020, equity shifts into positive territory, showing a general upward trend. From that point, equity grows steadily, climbing from 1,535 million to over 10,665 million by August 2025. This substantial improvement suggests effective capital management and possibly significant equity financing or retained earnings accumulation.

Return on Equity (ROE)

The reported return on equity exhibits extraordinary volatility and extremely high values. Initially, no data is available, but from November 2020 onwards, ROE surges to levels in the hundreds and even thousands of percent, with peaks exceeding 7,100% in July 2022. Such elevated figures likely result from very low or previously negative equity bases, amplifying the ROE ratio. Although the ROE remains high, it shows a declining trend after its peak, stabilizing at levels between 130% and 800% toward the later periods, indicative of normalization as equity strengthens.

Overall Insights

The financial data portrays a company experiencing significant changes in equity structure and corresponding profitability metrics. The shift from negative to positive equity is profound and aligns with highly volatile but overall stable net earnings. The extremely elevated ROE in certain periods primarily reflects the impact of low equity values rather than solely operational performance. The long-term trend indicates strengthening financial stability, improved equity capital, and continued profitability, albeit with recurring fluctuations in earnings.

Net Earnings

The net earnings show a fluctuating pattern over the observed periods. Initial values indicate moderate earnings around the 2,500 to 3,500 million USD range, with a notable peak at 4,807 million USD in August 2021. After this peak, the earnings demonstrate considerable volatility with subsequent decreases and recoveries, but without a clear upward or downward long-term trend. The latest figures around mid-2025 indicate a moderate recovery, albeit below the previous high points.

Total Assets

Total assets exhibit a general upward trajectory throughout the periods examined. Starting at approximately 51,515 million USD, there is a steady increase, reaching about 97,264 million USD by late 2024. This growth suggests continued investment or asset acquisitions, with some minor fluctuations but no significant asset declines observed. Such an increase in total assets aligns with a possible expansion strategy or capital accumulation over time.

Return on Assets (ROA)

The ROA data, available from early 2020 onward, presents a declining trend over the time frame. The ratio begins at a high of about 21.94% in May 2020 and gradually decreases to approximately 14.62% by August 2025. This decline implies a reduced efficiency in generating earnings from the asset base despite the increase in total assets, indicating either lower profitability margins or that asset growth has outpaced earnings growth.

Summary of Trends

Overall, the company has expanded its total asset base significantly during the reporting periods, reflecting growth or increased capital investments. However, net earnings have shown variability with intermittent peaks, suggesting fluctuating profitability levels. Importantly, the decline in ROA over the latter periods points to diminishing returns on the asset investments, potentially signaling the need for improved asset utilization or profitability strategies to enhance financial performance.