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The Home Depot (HD) EBIT

: USD21,867 Mil (TTM As of Jan. 2024)
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The Home Depot's earnings before interest and taxes (EBIT) for the three months ended in Jan. 2024 was USD4,198 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2024 was USD21,867 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. The Home Depot's annualized ROC % for the quarter that ended in Jan. 2024 was 22.69%. The Home Depot's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 41.91%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. The Home Depot's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 5.70%.


The Home Depot EBIT Historical Data

The historical data trend for The Home Depot's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Home Depot Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
EBIT
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15,916.00 18,325.00 23,084.00 24,094.00 21,867.00

The Home Depot Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
EBIT Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4,795.00 5,584.00 6,630.00 5,455.00 4,198.00

Competitive Comparison

For the Home Improvement Retail subindustry, The Home Depot's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Home Depot EV-to-EBIT Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where The Home Depot's EV-to-EBIT falls into.



The Home Depot EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was USD21,867 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


The Home Depot  (NYSE:HD) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

The Home Depot's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=16572 * ( 1 - 23.99% )/( (55119 + 55935)/ 2 )
=12596.3772/55527
=22.69 %

where

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

The Home Depot's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2023  Q: Jan. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=16792/( ( (32806 + max(7440, 0)) + (34038 + max(5843, 0)) )/ 2 )
=16792/( ( 40246 + 39881 )/ 2 )
=16792/40063.5
=41.91 %

where Working Capital is:

Working Capital(Q: Oct. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3932 + 22805 + 1887) - (18400 + 2784 + 0)
=7440

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2753 + 20976 + 1711) - (16835 + 2762 + 0)
=5843

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

The Home Depot's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jan. 2024 )
=21867/383381.953
=5.70 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


The Home Depot EBIT Related Terms

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The Home Depot (HD) Business Description

Address
2455 Paces Ferry Road, Atlanta, GA, USA, 30339
Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.
Executives
William D Bastek officer: EVP, Merchandising 2455 PACES FERRY RD., SE, C-20, ATLANTA GA 30339
Ann Marie Campbell officer: EVP - U.S. Stores 2455 PACES FERRY ROAD, ATLANTA GA 30339
Kimberly R Scardino officer: SVP-Finance, CAO & Controller 108 WILMOT ROAD, DEERFIELD IL 60015
Richard V Mcphail officer: EVP & CFO 2455 PACES FERRY RD SE, ATLANTA GA 30339
Timothy A. Hourigan officer: EVP - Human Resources 2455 PACES FERRY RD, SE, ATLANTA GA 30339
Fahim Siddiqui officer: EVP and CIO 2455 PACES FERRY RD., SE, ATLANTA GA 30339
Teresa Wynn Roseborough officer: EVP, Gen. Counsel & Corp. Sec. 2455 PACES FERRY ROAD NW, C-20, ATLANTA GA 30339
Hector A Padilla officer: EVP - Outside Sales & Service 2455 PACES FERRY RD., SE, ATLANTA GA 30339
Jeffrey G Kinnaird officer: EVP - Merchandising 2455 PACES FERRY RD., SE, C-20 LEGAL AFFAIRS, ATLANTA GA 30339
Edward P. Decker officer: EVP, Merchandising 2455 PACES FERRY RD NW, C-20, ATLANTA X1 30339
Matt Carey officer: EVP & CIO 11216 WAPLES MILL ROAD SUITE 100, FAIRFAX VA 22030
Paula Santilli director PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Becker Caryn Seidman director 65 EAST 55TH STREET, 17TH FLOOR, NEW YORK NY 10022
John A. Deaton officer: EVP - Supply Chain & Prod. Dev 2455 PACES FERRY RD., SE, ATLANTA GA 30339
Craig A Menear director, officer: Chairman & CEO 1436 PEACHTREE BATTLE AVENUE, ATLANTA GA 30327