Home DepotHD

Home DepotHD

Revenue: is the business selling more than it used to?

$152.7B−3% YoYFY 2023

→Revenue reached $152.7B in 2023, compounding +5% a year since 2020 though the pace has cooled. The trailing twelve months are already running at $169.2B, ahead of the last full year.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

Net income: how much of that revenue becomes profit?

$15.1B−12% YoYFY 2023

→Net income was $15.1B in 2023, compounding +6% a year over three years. Trailing twelve-month profit stands at $14.2B.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

How fast is it growing, year by year?

-3.0%revenue growth, FY 2023

→Revenue grew -3% in 2023 against a five-year average of +11%. Earnings fell +12% on top of it.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

Revenue per share: is your slice growing as fast as the company?

$152.36revenue per share, FY 2023

→Revenue per share reached $152.36 in 2023, compounding +8% a year against +5% for HD as a whole. Buybacks added roughly 2.6 points to your per-share result. Free cash flow per share stands at $17.91.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

Free cash flow: what is left in real cash after everything?

$17.9B+56% YoYFY 2023

→Free cash flow was $17.9B in 2023, compounding +3% a year since 2020. That is the most cash the business has ever thrown off in a year. The trailing twelve months stand at $15.1B.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

Where does each dollar of revenue actually go?

→Of $152.7B in 2023 sales, $15.1B reaches net profit - 10 cents on the dollar. The largest single deduction is producing the product ($101.7B).

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

How much of every sales dollar ends up as free cash?

→12 cents of every sales dollar became free cash in 2023, and it has held steady since 2020.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

What does staying competitive cost, per dollar of sales?

→The biggest claim on each sales dollar is capital spending, at 2% of revenue (stock compensation 0%).

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

When sales grow, do profits grow faster?

→Operating profit outgrew revenue in 3 of the last 5 years, most recently -10% against -3%. Each additional dollar of sales is landing more profitably than the last - the definition of operating leverage.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

Margins: of every $1 of sales, how much survives each cost layer?

→Operating margin has held near 14% since 2020. After everything, 10 cents of each sales dollar reaches net profit.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

What does it earn on the money it uses?

→ROE of 86% sits well above ROCE of 40%. A meaningful share of the shareholder return is manufactured with leverage rather than operations.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

What has the market paid for HD over time?

22.6xP/E today

→At 22.6x earnings, the market is paying +29% more than HD's own 7-year median of 17.5x. Expectations are elevated, so more has to go right to justify the price. Today's multiple is the highest in the charted history.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

What cash return does the business throw off per dollar of market value?

4.7%FCF yield today

→Every dollar of market value currently buys 4.7% of annual free cash flow, less than its 7-year median of 6.4% - you are paying up for the same cash.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

Could it handle its debt if things went wrong?

→Debt of $44.0B sits against $2.1B of cash, or 2.6x shareholders' equity. Earnings cover the interest bill 9 times over, so the debt is comfortably serviced.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

Is the company's own capital growing?

→The company's own capital grew from $1.0B in 2023 to $16.6B (+1492%). The business is building book value rather than consuming it.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

How much goes back, and how much leaks out as stock comp?

→Shareholders received $8.0B in buybacks and $8.4B in dividends in 2023. Stock compensation issued $380M of new shares in the same year, offsetting 2% of that.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

How fast is your ownership being diluted - or concentrated?

→The share count shrank 2.2% in 2023, averaging 2.4% a year over three years. Buybacks are concentrating your ownership: the same business, split fewer ways.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

Is the dividend cheque growing?

→The dividend per share reached $8.37 in 2023, compounding +15% a year since 2017.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

Can it afford the dividend?

→The dividend consumed 55% of profit and 47% of free cash flow in 2023. That leaves room to keep paying through a weak year.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

Does HD earn more on its capital than that capital costs?

→HD earns 39.8% on the capital it employs, well above the 10% most investors treat as the cost of capital. It was 38.5% in 2020, so the trend is up, and the pace is picking up.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

HD has issued or retired shares - did shareholders end up better off?

→HD has shrunk its share count -41% from 2009 to 2023, so each remaining share owns more of the business. Revenue per share is +290% over the same years.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02

Home DepotHD

Are the people running it buying or selling?

→Insiders sold $5M on the open market and bought nothing. Many sales are pre-scheduled diversification rather than a view on the price. A further 42 filings were grants, option exercises or tax withholding, which say nothing either way.

Source: SEC EDGAR (XBRL company facts) · as at 2026-08-02