The Home Depot key statistics and ratios
In fiscal 2026, The Home Depot had return on equity of 145.5%, an operating margin of 12.7%, debt equal to 385.5% of equity and a current ratio of 1.06. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.
Financial ratios
| Fiscal year | 2010Jan 2010 | 2011Jan 2011 | 2012Jan 2012 | 2013Feb 2013 | 2014Feb 2014 | 2015Feb 2015 | 2016Jan 2016 | 2017Jan 2017 | 2018Jan 2018 | 2019Feb 2019 | 2020Feb 2020 | 2021Jan 2021 | 2022Jan 2022 | 2023Jan 2023 | 2024Jan 2024 | 2025Feb 2025 | 2026Feb 2026 | LTMAug 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross margin | 33.9% | 34.3% | 34.5% | 34.6% | 34.2% | 34.1% | 34.2% | 34.2% | 34.0% | 34.3% | 34.1% | 34.0% | 33.6% | 33.5% | 33.4% | 33.4% | 33.3% | 33.2% |
| Operating margin | 7.3% | 8.6% | 9.5% | 10.4% | 11.6% | 12.6% | 13.3% | 14.2% | 14.5% | 14.4% | 14.4% | 13.8% | 15.2% | 15.3% | 14.2% | 13.5% | 12.7% | 12.4% |
| Net margin | 4.0% | 4.9% | 5.5% | 6.1% | 6.8% | 7.6% | 7.9% | 8.4% | 8.6% | 10.3% | 10.2% | 9.7% | 10.9% | 10.9% | 9.9% | 9.3% | 8.6% | 8.4% |
| Free-cash-flow margin | 6.3% | 5.1% | 7.7% | 7.6% | 7.9% | 8.2% | 8.9% | 8.6% | 10.0% | 9.9% | 10.0% | 12.4% | 9.3% | 7.3% | 11.8% | 10.2% | 7.7% | 8.9% |
| Return on equity | 13.7% | 17.4% | 21.1% | 25.4% | 35.5% | 58.1% | 89.6% | 149.4% | — | — | — | — | — | — | — | — | 145.5% | 96.7% |
| Return on assets | 6.5% | 8.2% | 9.6% | 11.1% | 13.2% | 15.8% | 17.1% | 18.7% | 19.7% | 25.1% | 23.6% | 21.1% | 23.1% | 23.1% | 19.8% | 17.2% | 14.1% | 13.3% |
| Asset turnover | 1.62 | 1.68 | 1.75 | 1.83 | 1.93 | 2.07 | 2.16 | 2.23 | 2.31 | 2.44 | 2.31 | 2.17 | 2.12 | 2.12 | 2.00 | 1.85 | 1.64 | 1.58 |
| Current ratio | 1.34 | 1.33 | 1.55 | 1.34 | 1.42 | 1.36 | 1.32 | 1.25 | 1.17 | 1.11 | 1.08 | 1.23 | 1.01 | 1.41 | 1.35 | 1.11 | 1.06 | 1.08 |
| Debt to equity | 49.9% | 51.6% | 60.1% | 53.3% | 117.3% | 181.0% | 329.1% | 515.8% | >999% | — | — | >999% | — | >999% | >999% | 773.6% | 385.5% | 318.3% |
| Interest cover (operating income ÷ interest) | 7.1x | 11.0x | 11.0x | 12.3x | 12.9x | 12.6x | 12.8x | 13.8x | 13.9x | 14.8x | 13.2x | 13.6x | 17.1x | 14.9x | 11.2x | 9.3x | 8.7x | 8.7x |
| Effective tax rate | 34.2% | 36.7% | 36.0% | 37.2% | 36.4% | 36.4% | 36.4% | 36.3% | 37.0% | 23.6% | 23.6% | 24.2% | 24.4% | 23.9% | 24.0% | 23.7% | 23.9% | 24.1% |
| SG&A as % of revenue | 24.0% | 23.3% | 22.8% | 22.1% | 20.5% | 19.6% | 19.0% | 18.1% | 17.7% | 18.0% | 17.9% | 18.5% | 16.8% | 16.7% | 17.4% | 18.0% | 18.6% | 18.8% |
| Capital spending as % of revenue | 1.5% | 1.6% | 1.7% | 1.8% | 1.8% | 1.7% | 1.7% | 1.7% | 1.9% | 2.3% | 2.4% | 1.9% | 1.7% | 2.0% | 2.1% | 2.2% | 2.2% | 2.2% |
| Free cash flow ÷ net income | 156.3% | 104.5% | 139.8% | 124.9% | 115.9% | 107.2% | 112.3% | 102.6% | 117.4% | 96.4% | 97.9% | 127.3% | 85.2% | 67.2% | 118.5% | 110.3% | 89.3% | 106.1% |
| Dividends ÷ net income | 57.3% | 47.0% | 42.0% | 38.4% | 41.7% | 39.9% | 43.2% | 42.8% | 48.8% | 42.3% | 53.0% | 50.1% | 42.5% | 45.5% | 55.4% | 60.3% | 64.7% | 64.8% |
| Dividends and buybacks ÷ free cash flow | 41.8% | 119.7% | 94.0% | 101.1% | 172.9% | 140.1% | 127.5% | 126.0% | 120.5% | 136.8% | 117.4% | 44.2% | 155.6% | 126.0% | 91.0% | 58.7% | 72.4% | 61.1% |
| Quarter | 2025 Q3Oct 2024 | 2025 Q4Feb 2025 | 2026 Q1May 2025 | 2026 Q2Aug 2025 | 2026 Q3Nov 2025 | 2026 Q4Feb 2026 | 2027 Q1May 2026 | 2027 Q2Aug 2026 |
|---|---|---|---|---|---|---|---|---|
| Gross margin | 33.4% | 32.8% | 33.8% | 33.4% | 33.4% | 32.6% | 33.0% | 33.7% |
| Operating margin | 13.5% | 11.3% | 12.9% | 14.5% | 12.9% | 10.1% | 11.9% | 14.3% |
| Net margin | 9.1% | 7.5% | 8.6% | 10.1% | 8.7% | 6.7% | 7.9% | 10.0% |
| Free-cash-flow margin | 8.5% | 9.0% | 8.8% | 8.2% | 7.5% | 6.0% | 12.4% | 9.4% |
| Current ratio | 1.13 | 1.11 | 1.09 | 1.15 | 1.05 | 1.06 | 1.04 | 1.08 |
| Debt to equity | 888.4% | 773.6% | 595.1% | 430.5% | 382.5% | 385.5% | 323.1% | 264.5% |
| SG&A as % of revenue | 17.9% | 19.5% | 18.9% | 17.1% | 18.5% | 20.3% | 19.1% | 17.6% |
Financial health
- Short-term assets cover short-term liabilities $37.7bn of assets due within a year against $35.0bn of liabilities due within a year.
- Short-term assets cover long-term liabilities $37.7bn short-term assets against $57.8bn of longer-dated liabilities.
- More cash than debt $2.1bn of cash against $44.0bn of debt.
- Debt below 40% of shareholders' equity Debt is 264% of equity.
- Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
- A year's operating cash flow covers at least 20% of debt $18.8bn of operating cash flow against $44.0bn of debt.
- Operating profit covers interest at least five times over Operating income of $21.0bn against $2.4bn of interest.
Moat
Strong moat
How hard The Home Depot's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.
- Returns on capital 20 / 20
Cash operating profit has been a median 30.0% of total assets over 10 years.
- Pricing power 12 / 20
Gross margin has been a median 33.7%, moving by 0.4 percentage points (standard deviation) across 10 years.
- Durability 14 / 20
Operating margin has been a median 14.4%; its worst year was 12.4%.
- Cash conversion 15 / 20
Free cash flow was positive in 10 of 10 years, at a median 9.4% of revenue.
- Discipline 19 / 20
The diluted share count fell 7.2% over five years; stock-based pay has been a median 0.3% of revenue.
AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (80 before it).
Compare with peers
More: Home Improvement Retail stocks compared, Consumer Discretionary sector, rankings of US companies