Home Depot Invested Capital vs Earnings before Tax Analysis

HD -- USA Stock  

USD 173.53  0.34  0.20%

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

Invested Capital vs Earnings before Tax

Accounts Relationship

Invested Capital vs Earnings before Tax

Significance: Strong Relationship

Invested Capital diversification synergy
Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Home Depot Invested Capital account and Earnings before Tax

Correlation Coefficient

0.7
Relationship DirectionPositive 
Relationship StrengthSignificant

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 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.

Earnings before Tax

Earnings Before Tax is calculated by adding Income Tax Expense back to Net Income.

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