Home Cost of Revenue vs Operating Income Analysis

HD Stock

USD 335.36 2.47 0.74%

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 Cost Of Revenue and its Operating Income accounts. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Home Depot. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.

For information on how to trade Home Stock refer to our How to Trade Home Stock guide.

Cost Of Revenue vs Operating Income

Cost of Revenue vs Operating Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Home Depot Cost of Revenue account and Operating Income. At this time, the significance of the direction appears to have almost identical trend.

The correlation between Home Depot's Cost of Revenue and Operating Income is 0.98. Overlapping area represents the amount of variation of Cost of Revenue that can explain the historical movement of Operating Income in the same time period over historical financial statements of Home Depot, assuming nothing else is changed. The correlation between historical values of Home Depot's Cost of Revenue and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Cost of Revenue of Home Depot are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Cost of Revenue i.e., Home Depot's Cost of Revenue and Operating Income go up and down completely randomly.

Correlation Coefficient

0.98

Relationship Direction	Positive
Relationship Strength	Very Strong

View All Relationships

Cost Of Revenue

Cost of Revenue is found on 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.

Operating Income

Operating Income is the amount of profit realized from Home Depot operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Home Depot is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Most indicators from Home Depot's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Home Depot current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Home Depot. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.

For information on how to trade Home Stock refer to our How to Trade Home Stock guide.At present, Home Depot's Issuance Of Capital Stock is projected to increase significantly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.21, whereas Discontinued Operations is forecasted to decline to about 32.8 M.

	2022	2023	2024 (projected)
Interest Expense	1.6B	1.9B	2.0B
Depreciation And Amortization	3.0B	3.2B	3.4B

Interest Expense Depreciation And Amortization

Home Depot fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Good Will	Common Stock Total Equity	Property Plant And Equipment Gross
Total Assets		0.94	0.98	0.94	-0.28	0.78	0.92	0.94	0.65	1.0	0.63	0.65	0.98	-0.04	0.95	0.97	0.89	-0.87	0.96	0.99	0.58	0.82	0.8	0.91	0.77	0.66
Short Long Term Debt Total	0.94		0.95	0.93	-0.59	0.64	1.0	0.99	0.58	0.92	0.62	0.58	0.97	-0.34	1.0	0.94	0.82	-0.98	0.99	0.95	0.69	0.88	0.76	0.93	0.6	0.54
Other Current Liab	0.98	0.95		0.98	-0.38	0.77	0.93	0.94	0.64	0.97	0.67	0.64	0.99	-0.1	0.95	0.96	0.84	-0.89	0.97	0.98	0.67	0.86	0.85	0.9	0.77	0.61
Total Current Liabilities	0.94	0.93	0.98		-0.47	0.76	0.92	0.91	0.6	0.92	0.75	0.6	0.97	-0.2	0.92	0.94	0.76	-0.89	0.96	0.95	0.79	0.85	0.89	0.86	0.7	0.48
Total Stockholder Equity	-0.28	-0.59	-0.38	-0.47		-0.01	-0.61	-0.55	-0.1	-0.23	-0.35	-0.1	-0.43	0.83	-0.54	-0.36	-0.15	0.7	-0.53	-0.34	-0.63	-0.55	-0.36	-0.45	0.09	0.11
Property Plant And Equipment Net	0.78	0.64	0.77	0.76	-0.01		0.62	0.61	0.51	0.78	0.59	0.51	0.72	0.09	0.65	0.76	0.66	-0.56	0.69	0.77	0.48	0.62	0.87	0.54	0.83	0.42
Net Debt	0.92	1.0	0.93	0.92	-0.61	0.62		0.99	0.51	0.91	0.58	0.51	0.96	-0.35	0.99	0.94	0.83	-0.99	0.99	0.94	0.7	0.88	0.75	0.92	0.59	0.53
Retained Earnings	0.94	0.99	0.94	0.91	-0.55	0.61	0.99		0.53	0.93	0.54	0.53	0.96	-0.29	0.99	0.94	0.86	-0.98	0.98	0.95	0.65	0.86	0.71	0.94	0.62	0.6
Cash	0.65	0.58	0.64	0.6	-0.1	0.51	0.51	0.53		0.65	0.66	1.0	0.62	-0.04	0.59	0.49	0.38	-0.48	0.6	0.65	0.32	0.48	0.56	0.61	0.49	0.36
Non Current Assets Total	1.0	0.92	0.97	0.92	-0.23	0.78	0.91	0.93	0.65		0.6	0.65	0.96	0.0	0.94	0.96	0.91	-0.85	0.95	0.98	0.56	0.81	0.77	0.9	0.78	0.69
Non Currrent Assets Other	0.63	0.62	0.67	0.75	-0.35	0.59	0.58	0.54	0.66	0.6		0.66	0.68	-0.38	0.6	0.62	0.3	-0.57	0.66	0.67	0.53	0.55	0.86	0.65	0.28	0.04
Cash And Short Term Investments	0.65	0.58	0.64	0.6	-0.1	0.51	0.51	0.53	1.0	0.65	0.66		0.62	-0.04	0.59	0.49	0.38	-0.48	0.6	0.65	0.32	0.48	0.56	0.61	0.49	0.36
Net Receivables	0.98	0.97	0.99	0.97	-0.43	0.72	0.96	0.96	0.62	0.96	0.68	0.62		-0.19	0.97	0.97	0.84	-0.93	0.99	0.99	0.68	0.84	0.82	0.94	0.7	0.62
Common Stock Shares Outstanding	-0.04	-0.34	-0.1	-0.2	0.83	0.09	-0.35	-0.29	-0.04	0.0	-0.38	-0.04	-0.19		-0.3	-0.12	0.1	0.46	-0.28	-0.11	-0.34	-0.27	-0.26	-0.33	0.42	0.32
Non Current Liabilities Total	0.95	1.0	0.95	0.92	-0.54	0.65	0.99	0.99	0.59	0.94	0.6	0.59	0.97	-0.3		0.95	0.84	-0.97	0.99	0.96	0.64	0.87	0.75	0.94	0.62	0.57
Inventory	0.97	0.94	0.96	0.94	-0.36	0.76	0.94	0.94	0.49	0.96	0.62	0.49	0.97	-0.12	0.95		0.88	-0.89	0.96	0.98	0.62	0.82	0.82	0.89	0.73	0.6
Other Current Assets	0.89	0.82	0.84	0.76	-0.15	0.66	0.83	0.86	0.38	0.91	0.3	0.38	0.84	0.1	0.84	0.88		-0.76	0.83	0.86	0.44	0.74	0.56	0.8	0.75	0.78
Other Stockholder Equity	-0.87	-0.98	-0.89	-0.89	0.7	-0.56	-0.99	-0.98	-0.48	-0.85	-0.57	-0.48	-0.93	0.46	-0.97	-0.89	-0.76		-0.97	-0.89	-0.71	-0.87	-0.73	-0.9	-0.52	-0.47
Total Liab	0.96	0.99	0.97	0.96	-0.53	0.69	0.99	0.98	0.6	0.95	0.66	0.6	0.99	-0.28	0.99	0.96	0.83	-0.97		0.97	0.7	0.88	0.81	0.93	0.66	0.56
Total Current Assets	0.99	0.95	0.98	0.95	-0.34	0.77	0.94	0.95	0.65	0.98	0.67	0.65	0.99	-0.11	0.96	0.98	0.86	-0.89	0.97		0.61	0.82	0.83	0.92	0.75	0.62
Short Term Debt	0.58	0.69	0.67	0.79	-0.63	0.48	0.7	0.65	0.32	0.56	0.53	0.32	0.68	-0.34	0.64	0.62	0.44	-0.71	0.7	0.61		0.67	0.66	0.54	0.43	0.17
Intangible Assets	0.82	0.88	0.86	0.85	-0.55	0.62	0.88	0.86	0.48	0.81	0.55	0.48	0.84	-0.27	0.87	0.82	0.74	-0.87	0.88	0.82	0.67		0.72	0.77	0.58	0.45
Accounts Payable	0.8	0.76	0.85	0.89	-0.36	0.87	0.75	0.71	0.56	0.77	0.86	0.56	0.82	-0.26	0.75	0.82	0.56	-0.73	0.81	0.83	0.66	0.72		0.69	0.62	0.26
Good Will	0.91	0.93	0.9	0.86	-0.45	0.54	0.92	0.94	0.61	0.9	0.65	0.61	0.94	-0.33	0.94	0.89	0.8	-0.9	0.93	0.92	0.54	0.77	0.69		0.48	0.58
Common Stock Total Equity	0.77	0.6	0.77	0.7	0.09	0.83	0.59	0.62	0.49	0.78	0.28	0.49	0.7	0.42	0.62	0.73	0.75	-0.52	0.66	0.75	0.43	0.58	0.62	0.48		0.7
Property Plant And Equipment Gross	0.66	0.54	0.61	0.48	0.11	0.42	0.53	0.6	0.36	0.69	0.04	0.36	0.62	0.32	0.57	0.6	0.78	-0.47	0.56	0.62	0.17	0.45	0.26	0.58	0.7

Click cells to compare fundamentals

Home Depot Account Relationship Matchups

Home Depot fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	51.2B	70.6B	71.9B	76.4B	76.5B	80.4B
Short Long Term Debt Total	37.4B	43.4B	46.3B	50.4B	52.2B	54.9B
Other Current Liab	4.8B	6.5B	7.3B	6.4B	6.8B	7.1B
Total Current Liabilities	18.4B	23.2B	28.7B	23.1B	22.0B	23.1B
Total Stockholder Equity	(3.1B)	3.3B	(1.7B)	1.6B	1.0B	991.8M
Property Plant And Equipment Net	28.4B	30.7B	31.2B	32.6B	34.0B	17.8B
Net Debt	35.2B	35.5B	43.9B	47.6B	48.5B	50.9B
Retained Earnings	51.7B	58.1B	67.6B	76.9B	83.7B	87.8B
Cash	2.1B	7.9B	2.3B	2.8B	3.8B	3.9B
Non Current Assets Total	31.4B	42.1B	42.8B	44.0B	46.8B	49.1B
Non Currrent Assets Other	807M	4.3B	3.8B	2.9B	1.2B	760.1M
Cash And Short Term Investments	2.1B	7.9B	2.3B	2.8B	3.8B	3.9B
Net Receivables	2.1B	3.0B	3.4B	3.3B	3.3B	3.5B
Common Stock Shares Outstanding	1.1B	1.1B	1.1B	1.0B	1.0B	1.4B
Liabilities And Stockholders Equity	51.2B	70.6B	71.9B	76.4B	76.5B	80.4B
Non Current Liabilities Total	36.0B	44.1B	44.9B	51.8B	53.5B	56.1B
Inventory	14.5B	16.6B	22.1B	24.9B	21.0B	22.0B
Other Stockholder Equity	(54.2B)	(54.3B)	(68.7B)	(74.7B)	(82.2B)	(78.1B)
Total Liab	54.4B	67.3B	73.6B	74.9B	75.5B	79.3B
Total Current Assets	19.8B	28.5B	29.1B	32.5B	29.8B	31.3B
Short Term Debt	3.6B	2.2B	4.3B	2.2B	2.4B	2.5B
Accounts Payable	7.8B	11.6B	13.5B	11.4B	10.0B	5.3B
Good Will	2.3B	7.1B	7.4B	7.4B	8.5B	8.9B
Property Plant And Equipment Gross	22.8B	30.7B	31.2B	32.6B	61.1B	64.2B
Accumulated Other Comprehensive Income	(739M)	(671M)	(704M)	(718M)	(477M)	(453.2M)
Other Liab	2.2B	2.9B	2.9B	3.6B	4.1B	4.3B
Other Assets	807M	527M	4.2B	4.0B	4.6B	4.8B
Long Term Debt	28.7B	35.8B	36.6B	42.0B	42.7B	44.9B
Property Plant Equipment	28.4B	30.7B	31.2B	32.6B	37.5B	25.7B
Current Deferred Revenue	2.1B	2.8B	3.6B	3.1B	2.8B	1.9B
Treasury Stock	(65.2B)	(65.8B)	(80.8B)	(87.3B)	(78.6B)	(74.6B)
Net Tangible Assets	(5.4B)	(7.4B)	(9.1B)	(5.9B)	(5.3B)	(5.0B)
Retained Earnings Total Equity	46.4B	51.7B	67.6B	76.9B	88.4B	92.9B
Long Term Debt Total	28.7B	35.8B	36.6B	42.0B	48.3B	24.7B
Capital Surpluse	11.0B	11.5B	12.1B	12.6B	14.5B	10.5B

Home Depot Investors Sentiment

The influence of Home Depot's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Home. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.

Investor biases related to Home Depot's public news can be used to forecast risks associated with an investment in Home. The trend in average sentiment can be used to explain how an investor holding Home can time the market purely based on public headlines and social activities around Home Depot. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Home Depot's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Home Depot's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Home Depot's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Home Depot.

Home Depot Implied Volatility

61.58

Home Depot's implied volatility exposes the market's sentiment of Home Depot stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Home Depot's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Home Depot stock will not fluctuate a lot when Home Depot's options are near their expiration.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Home Depot in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Home Depot's short interest history, or implied volatility extrapolated from Home Depot options trading.

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When determining whether Home Depot is a strong investment it is important to analyze Home Depot's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Home Depot's future performance. For an informed investment choice regarding Home Stock, refer to the following important reports:

How To Invest In Home

Details

Is Home Stock a good investment?

Details

What is Home Depot's Net Worth?

Details

Largest Home Improvement Retail Companies

View

Largest Consumer Discretionary Distribution & Retail Companies

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Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Home Depot. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.

For information on how to trade Home Stock refer to our How to Trade Home Stock guide.

Note that the Home Depot information on this page should be used as a complementary analysis to other Home Depot's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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When running Home Depot's price analysis, check to measure Home Depot's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Home Depot is operating at the current time. Most of Home Depot's value examination focuses on studying past and present price action to predict the probability of Home Depot's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Home Depot's price. Additionally, you may evaluate how the addition of Home Depot to your portfolios can decrease your overall portfolio volatility.

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Is Home Depot's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Home Depot. If investors know Home will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Home Depot listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

(0.15)

Dividend Share

8.52

Earnings Share

15.11

Revenue Per Share

152.822

Quarterly Revenue Growth

(0.03)

The market value of Home Depot is measured differently than its book value, which is the value of Home that is recorded on the company's balance sheet. Investors also form their own opinion of Home Depot's value that differs from its market value or its book value, called intrinsic value, which is Home Depot's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Home Depot's market value can be influenced by many factors that don't directly affect Home Depot's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Home Depot's value and its price as these two are different measures arrived at by different means. Investors typically determine if Home Depot is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Home Depot's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Home Cost of Revenue vs Operating Income Analysis

Cost Of Revenue vs Operating Income

Cost of Revenue vs Operating Income Correlation Analysis

Correlation Coefficient

Cost Of Revenue

Operating Income

Home Depot fundamental ratios Correlations

Home Depot Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Home Depot fundamental ratios Accounts

Home Depot Investors Sentiment

Home Depot Implied Volatility

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

Complementary Tools for Home Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Non Current Assets Total	+ 1.0	Total Assets
Net Debt	+ 1.0	Short Long Term Debt Total
Non Current Liabilities Total	+ 1.0	Short Long Term Debt Total
Cash And Short Term Investments	+ 1.0	Cash
Total Current Assets	+ 0.99	Total Assets
Retained Earnings	+ 0.99	Short Long Term Debt Total

Other Stockholder Equity	- 0.99	Net Debt
Other Stockholder Equity	- 0.98	Retained Earnings
Other Stockholder Equity	- 0.98	Short Long Term Debt Total
Total Liab	- 0.97	Other Stockholder Equity
Other Stockholder Equity	- 0.97	Non Current Liabilities Total
Other Stockholder Equity	- 0.93	Net Receivables