The Home Depot (BSP:HOME34) ROCE % : 32.08% (As of Oct. 2024)

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What is The Home Depot ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. The Home Depot's annualized ROCE % for the quarter that ended in Oct. 2024 was 32.08%.

The Home Depot ROCE % Historical Data

The historical data trend for The Home Depot's ROCE % 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.

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The Home Depot ROCE % Chart

The Home Depot Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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55.44

50.32

51.76

48.51

39.46

The Home Depot Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
ROCE %	Get a 7-Day Free Trial															42.98	31.10	38.35	44.31	32.08

The Home Depot ROCE % Calculation

The Home Depot's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	107546.279	/	( ( (396917.729 - 119991.742)	+	(376389.846 - 108274.173) )	/ 2 )
	=	107546.279	/	( (276925.987	+	268115.673)	/ 2 )
	=	107546.279	/	272520.83
	=	39.46 %

The Home Depot's ROCE % of for the quarter that ended in Oct. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	122641.016	/	( ( (536894.855 - 155908.287)	+	(547382.339 - 163723.958) )	/ 2 )
	=	122641.016	/	( ( 380986.568	+	383658.381 )	/ 2 )
	=	122641.016	/	382322.4745
	=	32.08 %

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

The Home Depot (BSP:HOME34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

The Home Depot ROCE % Related Terms

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The Home Depot Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The Home Depot Inc (BSP:HOME34) » Definitions » ROCE %

Comparable Companies

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HD:USA HD:Mexico 1HD:Italy HDI:Germany HD:Canada HD:Austria HD:Argentina

Address

2455 Paces Ferry Road, Atlanta, GA, USA, 30339

Website

https://www.homedepot.com

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 US, 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 Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The additions of the Company Store brought textiles to the lineup, and the recent tie-up with SRS will help grow professional demand in roofing, pool and landscaping projects.

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