Historical analysis of Home Depot income statement accounts such as Earning Before Interest and Taxes EBIT of 11.7 B
can show how well The Home Depot Inc performed in making a profits. Evaluating Home Depot income statement over time to spot trends is a great complementary tool to traditional technical analysis and can indicate the direction of Home Depot future profits or losses. Financial Statement Analysis is much more than just reviewing and examining The Home Depot latest accounting reports in order to predict its past. Macroaxis encourages investors to analyze financial statement over time for various trends across multiple indicators and accounts to determine whether The Home Depot is a good buy for the upcoming year. Please also check Risk vs Return Analysis
Cost of Revenue Earning Before Interest and Taxes EBIT Net Income Revenues
The Home Depot Inc Income Statement Chart
Cost of Revenue
Cost of Revenue is found on The Home Depot income statement and represents the costs associated with goods and services Home Depot provides. Indirect cost, such as salaries, is not included. In other words, cost of revenue is the total cost incurred to obtain a sale. It is more than the traditional cost of goods sold, since it includes specific selling and marketing activities. The aggregate cost of goods produced and sold and services rendered during the reporting period.
Earning Before Interest and Taxes EBIT
Earnings Before Interest and Tax is calculated by adding Income Tax Expense
and Interest Expense
back to Net Income
Net income is one of the most important fundamental items in finance. It plays a large role in The Home Depot financial statement analysis. It represents the amount of money remaining after all of The Home Depot Inc operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue. The portion of profit or loss for the period, net of income taxes, which is attributable to the parent after the deduction of Net Income Available to Non-controlling Interests from Consolidated Income
, and before the deduction of Preferred Dividends.
Revenues refers to the total amount of money received by Home Depot for goods sold or services provided during a certain time period. It also includes all of The Home Depot sales as well as any other increase in The Home Depot Inc equity.Revenues are reported on The Home Depot income statement and calculated before any expenses are subtracted. Amount of Revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Interest income for financial institutions is reported net of interest expense and provision for credit losses.