GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The Home Depot Inc (BUE:HD) » Definitions » 3-Year RORE %

The Home Depot (BUE:HD) 3-Year RORE % : 58.84% (As of Oct. 2024)


View and export this data going back to . Start your Free Trial

What is The Home Depot 3-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. The Home Depot's 3-Year RORE % for the quarter that ended in Oct. 2024 was 58.84%.

The industry rank for The Home Depot's 3-Year RORE % or its related term are showing as below:

BUE:HD's 3-Year RORE % is ranked worse than
59.29% of 1039 companies
in the Retail - Cyclical industry
Industry Median: 0.67 vs BUE:HD: 58.84

The Home Depot 3-Year RORE % Historical Data

The historical data trend for The Home Depot's 3-Year RORE % 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 3-Year RORE % Chart

The Home Depot Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 41.78 34.14 34.52 30.46 43.11

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
3-Year RORE % Get a 7-Day Free Trial 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 33.25 43.11 52.75 58.00 58.84

Competitive Comparison of The Home Depot's 3-Year RORE %

For the Home Improvement Retail subindustry, The Home Depot's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where The Home Depot's 3-Year RORE % falls into.



The Home Depot 3-Year RORE % Calculation

The Home Depot's 3-Year RORE % for the quarter that ended in Oct. 2024 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( 52608.869-8167.792 )/( 75921.936-398.329 )
=44441.077/75523.607
=58.84 %

* 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.

In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Oct. 2024 and 3-year before.


The Home Depot  (BUE:HD) 3-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


The Home Depot 3-Year RORE % Related Terms

Thank you for viewing the detailed overview of The Home Depot's 3-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Home Depot 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 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.