Home Depot Invested Capital vs Average Equity Analysis

HD -- USA Stock  

USD 183.54  0.44  0.24%

Home Depot financial indicator trend analysis is much more than just examining The Home Depot latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether The Home Depot is a good investment. Please check the relationship between Home Depot Invested Capital and its Average Equity accounts. Please also check Risk vs Return Analysis.

Invested Capital vs Average Equity

Accounts Relationship

Invested Capital vs Average Equity

Significance: Strong Contrarian Relationship

Invested Capital diversification synergy
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

-0.6
Relationship DirectionNegative 
Relationship StrengthWeak

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.

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