Home Depot Invested Capital vs Free Cash Flow Analysis

HD -- USA Stock  

USD 180.44  0.59  0.33%

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 Free Cash Flow accounts. Please also check Risk vs Return Analysis.

Invested Capital vs Free Cash Flow

Accounts Relationship

Invested Capital vs Free Cash Flow

Significance: Very Strong Relationship

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

Correlation Coefficient

0.83
Relationship DirectionPositive 
Relationship StrengthStrong

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.

Free Cash Flow

Free Cash Flow is a measure of financial performance calculated as Net Cash Flow from Operations minus Capital Expenditure.

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