Home Gross Profit vs Net Income Analysis

HD Stock  USD 385.89  5.96  1.57%   
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 Gross Profit and its Net 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.

Gross Profit vs Net Income

Gross Profit vs Net Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Home Depot Gross Profit account and Net Income. At this time, the significance of the direction appears to have almost identical trend.
The correlation between Home Depot's Gross Profit and Net Income is 0.97. Overlapping area represents the amount of variation of Gross Profit that can explain the historical movement of Net 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 Gross Profit and Net 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 Gross Profit of Home Depot are associated (or correlated) with its Net Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Income has no effect on the direction of Gross Profit i.e., Home Depot's Gross Profit and Net Income go up and down completely randomly.

Correlation Coefficient

0.97
Relationship DirectionPositive 
Relationship StrengthVery Strong

Gross Profit

Gross profit is a required income statement account that reflects total revenue of Home Depot minus its cost of goods sold. It is profit before Home Depot operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in Home Depot financial statement analysis. It represents the amount of money remaining after all of Home Depot operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.
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.
 2022 2023 2024 (projected)
Interest Expense1.6B1.9B2.0B
Depreciation And Amortization3.0B3.2B3.4B

Home Depot fundamental ratios Correlations

0.940.980.94-0.280.780.920.940.651.00.630.650.98-0.040.950.970.89-0.870.960.990.580.820.80.910.770.66
0.940.950.93-0.590.641.00.990.580.920.620.580.97-0.341.00.940.82-0.980.990.950.690.880.760.930.60.54
0.980.950.98-0.380.770.930.940.640.970.670.640.99-0.10.950.960.84-0.890.970.980.670.860.850.90.770.61
0.940.930.98-0.470.760.920.910.60.920.750.60.97-0.20.920.940.76-0.890.960.950.790.850.890.860.70.48
-0.28-0.59-0.38-0.47-0.01-0.61-0.55-0.1-0.23-0.35-0.1-0.430.83-0.54-0.36-0.150.7-0.53-0.34-0.63-0.55-0.36-0.450.090.11
0.780.640.770.76-0.010.620.610.510.780.590.510.720.090.650.760.66-0.560.690.770.480.620.870.540.830.42
0.921.00.930.92-0.610.620.990.510.910.580.510.96-0.350.990.940.83-0.990.990.940.70.880.750.920.590.53
0.940.990.940.91-0.550.610.990.530.930.540.530.96-0.290.990.940.86-0.980.980.950.650.860.710.940.620.6
0.650.580.640.6-0.10.510.510.530.650.661.00.62-0.040.590.490.38-0.480.60.650.320.480.560.610.490.36
1.00.920.970.92-0.230.780.910.930.650.60.650.960.00.940.960.91-0.850.950.980.560.810.770.90.780.69
0.630.620.670.75-0.350.590.580.540.660.60.660.68-0.380.60.620.3-0.570.660.670.530.550.860.650.280.04
0.650.580.640.6-0.10.510.510.531.00.650.660.62-0.040.590.490.38-0.480.60.650.320.480.560.610.490.36
0.980.970.990.97-0.430.720.960.960.620.960.680.62-0.190.970.970.84-0.930.990.990.680.840.820.940.70.62
-0.04-0.34-0.1-0.20.830.09-0.35-0.29-0.040.0-0.38-0.04-0.19-0.3-0.120.10.46-0.28-0.11-0.34-0.27-0.26-0.330.420.32
0.951.00.950.92-0.540.650.990.990.590.940.60.590.97-0.30.950.84-0.970.990.960.640.870.750.940.620.57
0.970.940.960.94-0.360.760.940.940.490.960.620.490.97-0.120.950.88-0.890.960.980.620.820.820.890.730.6
0.890.820.840.76-0.150.660.830.860.380.910.30.380.840.10.840.88-0.760.830.860.440.740.560.80.750.78
-0.87-0.98-0.89-0.890.7-0.56-0.99-0.98-0.48-0.85-0.57-0.48-0.930.46-0.97-0.89-0.76-0.97-0.89-0.71-0.87-0.73-0.9-0.52-0.47
0.960.990.970.96-0.530.690.990.980.60.950.660.60.99-0.280.990.960.83-0.970.970.70.880.810.930.660.56
0.990.950.980.95-0.340.770.940.950.650.980.670.650.99-0.110.960.980.86-0.890.970.610.820.830.920.750.62
0.580.690.670.79-0.630.480.70.650.320.560.530.320.68-0.340.640.620.44-0.710.70.610.670.660.540.430.17
0.820.880.860.85-0.550.620.880.860.480.810.550.480.84-0.270.870.820.74-0.870.880.820.670.720.770.580.45
0.80.760.850.89-0.360.870.750.710.560.770.860.560.82-0.260.750.820.56-0.730.810.830.660.720.690.620.26
0.910.930.90.86-0.450.540.920.940.610.90.650.610.94-0.330.940.890.8-0.90.930.920.540.770.690.480.58
0.770.60.770.70.090.830.590.620.490.780.280.490.70.420.620.730.75-0.520.660.750.430.580.620.480.7
0.660.540.610.480.110.420.530.60.360.690.040.360.620.320.570.60.78-0.470.560.620.170.450.260.580.7
Click cells to compare fundamentals

Home Depot Account Relationship Matchups

Home Depot fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets51.2B70.6B71.9B76.4B76.5B80.4B
Short Long Term Debt Total37.4B43.4B46.3B50.4B52.2B54.9B
Other Current Liab4.8B6.5B7.3B6.4B6.8B7.1B
Total Current Liabilities18.4B23.2B28.7B23.1B22.0B23.1B
Total Stockholder Equity(3.1B)3.3B(1.7B)1.6B1.0B991.8M
Property Plant And Equipment Net28.4B30.7B31.2B32.6B34.0B17.8B
Net Debt35.2B35.5B43.9B47.6B48.5B50.9B
Retained Earnings51.7B58.1B67.6B76.9B83.7B87.8B
Cash2.1B7.9B2.3B2.8B3.8B3.9B
Non Current Assets Total31.4B42.1B42.8B44.0B46.8B49.1B
Non Currrent Assets Other807M4.3B3.8B2.9B1.2B760.1M
Cash And Short Term Investments2.1B7.9B2.3B2.8B3.8B3.9B
Net Receivables2.1B3.0B3.4B3.3B3.3B3.5B
Common Stock Shares Outstanding1.1B1.1B1.1B1.0B1.0B1.4B
Liabilities And Stockholders Equity51.2B70.6B71.9B76.4B76.5B80.4B
Non Current Liabilities Total36.0B44.1B44.9B51.8B53.5B56.1B
Inventory14.5B16.6B22.1B24.9B21.0B22.0B
Other Stockholder Equity(54.2B)(54.3B)(68.7B)(74.7B)(82.2B)(78.1B)
Total Liab54.4B67.3B73.6B74.9B75.5B79.3B
Total Current Assets19.8B28.5B29.1B32.5B29.8B31.3B
Short Term Debt3.6B2.2B4.3B2.2B2.4B2.5B
Accounts Payable7.8B11.6B13.5B11.4B10.0B5.3B
Good Will2.3B7.1B7.4B7.4B8.5B8.9B
Property Plant And Equipment Gross22.8B30.7B31.2B32.6B61.1B64.2B
Accumulated Other Comprehensive Income(739M)(671M)(704M)(718M)(477M)(453.2M)
Other Liab2.2B2.9B2.9B3.6B4.1B4.3B
Other Assets807M527M4.2B4.0B4.6B4.8B
Long Term Debt28.7B35.8B36.6B42.0B42.7B44.9B
Property Plant Equipment28.4B30.7B31.2B32.6B37.5B25.7B
Current Deferred Revenue2.1B2.8B3.6B3.1B2.8B1.9B
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 Equity46.4B51.7B67.6B76.9B88.4B92.9B
Long Term Debt Total28.7B35.8B36.6B42.0B48.3B24.7B
Capital Surpluse11.0B11.5B12.1B12.6B14.5B10.5B

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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:
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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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
15.12
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.