Gross Margin % is calculated as gross profit divided by its revenue. The Home Depot's Gross Profit for the
three
months ended in Jan. 2024 was $11,508 Mil. The Home Depot's Revenue for the
three
months ended in Jan. 2024 was $34,786 Mil. Therefore, The Home Depot's Gross Margin % for the quarter that ended in Jan. 2024 was 33.08%.
The historical rank and industry rank for The Home Depot's Gross Margin % or its related term are showing as below:
HD'
s Gross Margin % Range Over the Past 10 Years
Min: 33.38 Med: 34.07 Max: 34.34
Current: 33.38
During the past 13 years, the highestGross Margin % of The Home Depot was 34.34%. The lowest was 33.38%. And the median was 34.07%.
HD's Gross Margin % is ranked worse than 57.17% of 1095
companies
in the Retail - Cyclical industry
Industry Median: 36.86
vs HD: 33.38
The Home Depot had a gross margin of 33.08% for the quarter that ended in Jan. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Home Depot was -0.60% per year.
The Home Depot Gross Margin % Historical Data
The historical data trend for The Home Depot's Gross Margin % 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
Gross Margin %
34.09
33.95
33.63
33.53
33.38
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
Gross Margin %
33.28
33.70
32.99
33.78
33.08
Competitive Comparison
For the Home Improvement Retail subindustry, The Home Depot's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Home Depot's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Home Depot (NYSE:HD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Home Depot had a gross margin of 33.08% for the quarter that ended in Jan. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Home Depot Gross Margin % Related Terms
Thank you for viewing the detailed overview of The Home Depot's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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