Home Depot Invested Capital vs Average Equity Analysis

Invested Capital vs Average Equity

Accounts Relationship

Invested Capital vs Average Equity

Significance: Significant Contrarian Relationship

Overlapping area represents amount of trend that can be explained by analyzing historical patterns of The Home Depot Invested Capital account and Average Equity

Correlation Coefficient

-0.47
Relationship DirectionNegative 
Relationship StrengthVery Weak

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to The Home Depot. There are two different methods for calculating The Home Depot invested capital: operating approach and financing approach. Understanding ##company1# invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed. Invested capital is an input into the calculation of Return on Invested Capital, and is calculated as: Total Debt plus Total Assets minus Goodwill and Intangible Assets minus Cash and Equivalents minus Current Liabilities. Please note this calculation method is subject to change.

Average Equity

Average equity value for the period used in calculation of Return on Average Equity, derived from Shareholders Equity.

Did you try this?

Run Crypto Portfolio Optimizer Now
   

Crypto Portfolio Optimizer

Optimize portfolio of digital coins and token across multiple currency and exchanges
View All  Next Launch Crypto Portfolio Optimizer

Generate Optimal Portfolios

Align your risk and return expectations
Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please also check Risk vs Return Analysis. Please also try Transaction History module to view history of all your transactions and understand their impact on performance.