Home Depot Inc. (NYSE:HD)

Gross Profit Margin

The gross profit margin exhibits a relatively stable pattern over the analyzed periods, fluctuating slightly but maintaining a narrow range around 33.3% to 34.1%. The highest recorded margin is approximately 34.1%, and there is a gradual mild decline observable towards the later periods, reaching about 33.36% by the last period. This indicates a steady cost structure relative to revenue without significant volatility.

Operating Profit Margin

The operating profit margin shows more variability compared to gross profit margin. It starts around 13.85% and increases steadily, peaking near 15.33% in the periods around late 2021 and early 2022. After this peak, there is a noticeable downward trend reaching around 12.96% by the most recent period. This suggests that operational efficiency improved significantly through mid-2021 to early 2022, followed by a gradual decrease potentially due to rising operating costs or competitive pressures.

Net Profit Margin

Net profit margin mirrors the behavior of the operating margin but generally operates at lower values, starting near 9.79% and peaking just above 10.87% around late 2021 and early 2022. Subsequent periods show a consistent decline to approximately 8.77% at the end of the timeframe. This trend implies some erosion in overall profitability after operating expenses, taxes, and other costs are factored in.

Return on Equity (ROE)

The ROE data appears to contain irregularities and outliers with extremely large values and missing data points in certain periods, such as multiple periods showing figures in the hundreds or thousands percent range, which is atypical and may suggest data anomalies or extraordinary events impacting equity returns. Despite this, there is a general downward tendency in ROE from the high spikes toward more moderate single-digit percentage returns in the latest periods, indicating normalization or reduction of extraordinary profitability factors.

Return on Assets (ROA)

The return on assets starts robustly at approximately 18.68% and shows a tangible rising trend through mid-2021, reaching above 22% in some periods. This indicates improving efficiency in asset utilization. Following this peak, ROA declines steadily to roughly 13.72% by the latest reported period, signaling a reduction in how effectively assets generate profit over time. The downward trend may reflect increased asset base without proportional profit growth or rising operational challenges.

Net Sales

The net sales demonstrate a generally increasing trend over the observed periods. Beginning at approximately 28.3 billion US dollars, sales increased significantly to peak around 45.3 billion US dollars in the latter quarters. Despite some fluctuations, the overall trajectory indicates growth in revenue generation across the quarters, with notable rises around mid-2020 and 2024, suggesting strengthening market demand or expansion activities.

Gross Profit

Gross profit follows a broadly similar upward trend to net sales, starting from around 9.6 billion US dollars and rising to over 15 billion US dollars in the most recent quarters. The variations in gross profit closely mirror the periods of increased sales, which is consistent with business growth. However, some quarters show dips compared to preceding ones, indicating temporary pressures or cost changes affecting earnings before operating expenses.

Gross Profit Margin

The gross profit margin remains relatively stable throughout, hovering slightly above 33% consistently. Minor fluctuations within a narrow range of approximately 33.3% to 34.1% suggest effective cost management relative to sales. There is a slight declining trend from early data points to later quarters, but the stability implies the company maintains consistent pricing and cost control policies over time.

Summary

Overall, the financial performance indicates steady revenue growth complemented by rising gross profits, albeit with moderate variability in quarterly results. The stable gross profit margin points to sustained cost efficiency relative to sales volume. This combination reflects positive operational conditions and suggests the company has maintained its profitability even as it scales sales.

The quarterly financial data reveals several notable trends in key performance metrics over the analyzed periods.

Net Sales

Net sales exhibited fluctuations but a general upward trend over the timeframe. Starting from approximately 28.3 billion USD, sales increased significantly to peak above 45 billion USD in some of the later quarters. Despite some interim declines, overall, the data indicates growth in revenue generation capacity.

Operating Income

Operating income demonstrated considerable variability with several peaks and troughs. It began near 3.3 billion USD, reached a high above 7.2 billion USD, and experienced declines towards later quarters, stabilizing around the 5 to 6 billion USD range. This pattern suggests periods of both strong profitability and operational challenges impacting income levels.

Operating Profit Margin

The operating profit margin remained relatively stable with minor fluctuations throughout the periods but showed a subtle downward trend over time. The margin started near 14% and increased slightly to a peak above 15% in the middle periods, before gradually decreasing to just under 13% by the end of the timeline. This decline in margin indicates marginal pressure on profitability despite growing sales.

Overall, the data depicts a business experiencing growth in sales with corresponding variation in operating income. However, the profitability margin has faced slight erosion which may reflect rising costs or competitive pressures affecting efficiency. Continuous monitoring of operating income relative to sales and margin trends will be critical to assess long-term operational effectiveness.

Net earnings

The net earnings exhibit fluctuations over the observed periods. Initially, there is a notable increase from approximately 2,245 million USD to a peak around 4,807 million USD in mid-2021. Following this peak, net earnings display a pattern of rises and declines with subsequent peaks and troughs. There is a general downward trend after early 2023, with periodic recoveries, but the earnings never quite return to the previous highs, ending at approximately 3,601 million USD in late 2025. The data indicates some cyclical variations as well as an overall moderation in net earnings toward the latter periods.

Net sales

Net sales show growth across the timeline, increasing from roughly 28,260 million USD at the start to about 45,277 million USD at later points. This rise is not steady; there are periods of stagnation or slight decline, particularly around early 2022 and mid-2023, but the overall trend remains upward. The data suggests the company has generally succeeded in expanding its revenue base, albeit with intermittent slowdowns.

Net profit margin

The net profit margin percentage demonstrates a gradual decline over the observed periods. It begins close to 9.79% and peaks in the range near 10.8% during 2021 and early 2022, suggesting improved profitability relative to sales during this period. After that peak, there is a steady decrease in margin, sliding below 9% by the end of the timeline. This decline in net profit margin occurs despite rising net sales, possibly indicating increasing costs or pricing pressures affecting profitability.

Overall Analysis

Despite growing net sales, the company's net earnings and net profit margin display a less consistent upward trajectory. The early period benefits from strong earnings growth and margin expansion, but later periods suggest challenges in maintaining profitability levels. The declining profit margin alongside increasing sales may point toward cost management challenges or competitive pricing dynamics. The cyclicality in net earnings underscores possible volatility in operational performance or market conditions. In summary, while revenue growth is positive, profitability trends warrant attention to sustain long-term financial health.

The financial data reflects significant fluctuations in net earnings, stockholders’ equity, and return on equity (ROE) over the observed periods. The analysis highlights notable trends and variations indicative of the company’s operational and financial dynamics.

Net Earnings

Net earnings demonstrate variability across the quarters, with notable peaks and troughs. Initial figures start at $2,245 million, rising sharply to $4,332 million in the subsequent period, suggesting improved profitability. Fluctuations continue with highs around $5,173 million and $4,659 million in mid-to-late 2022 and 2023, respectively, interrupted by periods of decline such as the $2,801 million recorded in early 2024. The oscillation implies a business environment influenced by seasonal factors, market conditions, or operational challenges affecting earnings consistency.

Stockholders’ Equity

Stockholders’ equity exhibits a recovery trend over time, starting from a deficit of -$3,490 million and progressing toward substantial positive values reaching $12,116 million by late 2025. The transition from negative to positive equity underscores improvements in net assets or retained earnings, reflecting strengthened financial stability. Periods of volatility are evident, such as the negative values around early 2022, which could indicate temporary losses or increased liabilities, followed by sustained growth in equity levels thereafter.

Return on Equity (ROE)

ROE figures show extreme variation, with some quarters registering extraordinarily high percentages surpassing 1,000%, including spikes above 7,000% in late 2021 and various other anomalously high values through 2023 and 2024. Such elevated ratios likely result from low or negative equity values influencing the denominator in the ROE calculation, thus magnifying the percentage. More normalized ROE values appear in later periods, trending downward from above 800% to a more moderate 120% in 2025. Despite this, the ROE remains significantly high compared to conventional benchmarks, indicating a highly leveraged or capital-efficient operational profile.

Overall, the company shows a trajectory of recovering and strengthening balance sheet health via increases in stockholders’ equity, while net earnings remain subject to considerable quarter-to-quarter fluctuations. The ROE data, though skewed by equity fluctuations, suggests periods of strong profitability relative to equity. The financial indicators imply ongoing adjustments in capital structure and earnings effectiveness during this timeframe.

The analysis of the quarterly financial indicators reveals significant trends in net earnings, total assets, and return on assets (ROA) over the observed periods.

Net Earnings

Net earnings demonstrate a fluctuating yet generally positive performance throughout the quarters. Initially, there is a notable increase from 2,245 million USD to a peak of 4,807 million USD in August 2021. Following that apex, net earnings experience periodic declines and recoveries, indicating volatility in profitability. The most recent periods show a slight downward trend from 4,561 million USD in August 2025 to 3,601 million USD in November 2025, suggesting a potential moderation in earnings growth.

Total Assets

Total assets exhibit a steady upward trajectory across the quarters, increasing from 58,737 million USD to over 106,000 million USD by the end of the timeline. This growth indicates sustained investment or asset accumulation by the company. The asset base nearly doubles over the covered periods, with occasional modest fluctuations but no significant contractions, reflecting strong asset growth and likely expansion activities.

Return on Assets (ROA)

The ROA percentage trends downward over time, starting from a high of approximately 18.68% and gradually decreasing to around 13.72% in the latest quarters. This decline suggests diminishing efficiency in converting asset base into net earnings. The initial period shows steady ROA above 20%, but beginning from mid-2023 onwards, a consistent erosion in ROA occurs, possibly linked to the faster increase in total assets in relation to earnings growth.

Overall, while the company has increased its asset base substantially and maintained generally strong net earnings, the declining ROA points to a reduced efficiency in asset utilization and profitability generation relative to the size of assets. This could suggest the need to assess the quality and return potential of newly acquired assets or to focus on operational improvements to sustain earnings growth in line with asset expansion.