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The Home Depot (HD) Sloan Ratio % : -1.70% (As of Jan. 2024)


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What is The Home Depot Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

The Home Depot's Sloan Ratio for the quarter that ended in Jan. 2024 was -1.70%.

As of Jan. 2024, The Home Depot has a Sloan Ratio of -1.70%, indicating the company is in the safe zone and there is no funny business with accruals.


The Home Depot Sloan Ratio % Historical Data

The historical data trend for The Home Depot's Sloan Ratio % 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 Sloan Ratio % Chart

The Home Depot Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.41 5.95 3.94 7.36 -1.70

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
Sloan Ratio % 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 7.36 4.78 0.23 -1.70 -1.70

Competitive Comparison of The Home Depot's Sloan Ratio %

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

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

* The bar in red indicates where The Home Depot's Sloan Ratio % falls into.



The Home Depot Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

The Home Depot's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as

Sloan Ratio=(Net Income (A: Jan. 2024 )-Cash Flow from Operations (A: Jan. 2024 )
-Cash Flow from Investing (A: Jan. 2024 ))/Total Assets (A: Jan. 2024 )
=(15143-21172
--4729)/76530
=-1.70%

The Home Depot's Sloan Ratio for the quarter that ended in Jan. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jan. 2024 )
=(15143-21172
--4729)/76530
=-1.70%

The Home Depot's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 3873 (Apr. 2023 ) + 4659 (Jul. 2023 ) + 3810 (Oct. 2023 ) + 2801 (Jan. 2024 ) = $15,143 Mil.
The Home Depot's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 5614 (Apr. 2023 ) + 6591 (Jul. 2023 ) + 4234 (Oct. 2023 ) + 4733 (Jan. 2024 ) = $21,172 Mil.
The Home Depot's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -903 (Apr. 2023 ) + -999 (Jul. 2023 ) + -1246 (Oct. 2023 ) + -1581 (Jan. 2024 ) = $-4,729 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) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Jan. 2024, The Home Depot has a Sloan Ratio of -1.70%, indicating the company is in the safe zone and there is no funny business with accruals.


The Home Depot Sloan Ratio % 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

The Home Depot (HD) Headlines

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