The Home Depot (WBO:HD) 5-Year ROIIC % : 16.88% (As of Jan. 2024)

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What is The Home Depot 5-Year ROIIC %?

5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year. The Home Depot's 5-Year ROIIC % for the quarter that ended in Jan. 2024 was 16.88%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for The Home Depot's 5-Year ROIIC % or its related term are showing as below:

WBO:HD's 5-Year ROIIC % is ranked better than
74.8% of 1020 companies
in the Retail - Cyclical industry
Industry Median: 2.465 vs WBO:HD: 16.88

The Home Depot 5-Year ROIIC % Historical Data

The historical data trend for The Home Depot's 5-Year ROIIC % 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 5-Year ROIIC % Chart

The Home Depot Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

5-Year ROIIC %

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64.58

35.46

41.21

35.25

16.88

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
5-Year ROIIC %	Get a 7-Day Free Trial															35.25	-	-	-	16.88

Competitive Comparison of The Home Depot's 5-Year ROIIC %

For the Home Improvement Retail subindustry, The Home Depot's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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's 5-Year ROIIC % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's 5-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where The Home Depot's 5-Year ROIIC % falls into.

The Home Depot 5-Year ROIIC % Calculation

The Home Depot's 5-Year ROIIC % for the quarter that ended in Jan. 2024 is calculated as:

5-Year ROIIC %	=	5-Year Incremental Net Operating Profit After Taxes (NOPAT)^**	/	5-Year Incremental Invested Capital^**
	=	( 15131.98152 (Jan. 2024) - 10558.978128 (Jan. 2019) )	/	( 51348.33 (Jan. 2024) - 26004.936 (Jan. 2019) )
	=	4573.003392	/	25343.394
	=	18.04%^***

** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

The Home Depot (WBO:HD) 5-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.

The Home Depot 5-Year ROIIC % Related Terms

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The Home Depot (WBO:HD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The Home Depot Inc (WBO:HD) » Definitions » 5-Year ROIIC %

Comparable Companies

Traded in Other Exchanges

HD:USA HD:Peru HD:Mexico 1HD:Italy 0R1G:UK HDI:Germany HD:Canada HOME34:Brazil 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 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.