What is Home Depot's earnings per share (EPS)?

Home Depot (HD) reported diluted earnings per share of $14.23 for fiscal year 2026. This represents a -4.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Home Depot Financials

Source SEC Filings (10-K/10-Q) Updated Feb 1, 2026 Currency USD FYE February

This page shows Home Depot (HD) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI HD FY2026 2026-04-22

Home Depot is still growing sales, but incremental revenue is being absorbed by overhead, financing, and reinvestment instead of cash.

Across the last three fiscal years, gross margin stayed near 33.3% even as operating margin compressed to 12.7%. Free-cash-flow margin also ended at 7.7% versus 11.8% in FY2024, which implies the squeeze is happening below gross profit: merchandise economics are fairly steady, but store overhead, interest burden, and capital needs are taking a larger share of each sales dollar.

Liquidity is intentionally tight: cash was only $1.4B against current liabilities of $32.4B, so the model depends on continuously turning inventory and receivables into cash rather than holding a large reserve. That keeps the balance sheet efficient, but it leaves day-to-day flexibility tied closely to operating rhythm.

Capital allocation has changed: buybacks fell from $8.0B in FY2024 to $0 in FY2026. With long-term debt at $49.4B and dividends still requiring $9.2B, cash that once reduced share count is now more committed to servicing a heavier balance sheet and sustaining shareholder payouts.

Financial Health Signals

Financial Profile 47/100

Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Home Depot's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability

Home Depot has an operating margin of 12.7%, meaning the company retains $13 of operating profit per $100 of revenue. This results in a moderate score of 52/100, indicating healthy but not exceptional operating efficiency. This is down from 13.5% the prior year.

Growth

Home Depot's revenue grew a modest 3.2% year-over-year to $164.7B. This slow but positive growth earns a score of 40/100.

Leverage

Home Depot has elevated debt relative to equity (D/E of 3.86), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 23/100, reflecting increased financial risk.

Liquidity

Home Depot's current ratio of 1.06 is below the typical benchmark, resulting in a score of 16/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow

Home Depot has a free cash flow margin of 7.7%, earning a moderate score of 48/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

100

Home Depot earns a strong 110.5% return on equity (ROE), meaning it generates $111 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is down from 186.2% the prior year.

Altman Z-Score Safe

5.60

Home Depot scores 5.60, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral

4/9

Home Depot passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Cash-Backed

1.15x

For every $1 of reported earnings, Home Depot generates $1.15 in operating cash flow ($16.3B OCF vs $14.2B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe

8.7x

Home Depot earns $8.7 in operating income for every $1 of interest expense ($20.9B vs $2.4B). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

Export CSV

Earnings & Revenue

Revenue

$164.7B

YoY+3.2%

5Y CAGR+4.5%

10Y CAGR+6.4%

Home Depot generated $164.7B in revenue in fiscal year 2026. This represents an increase of 3.2% from the prior year.

EBITDA

$24.4B

YoY-1.8%

5Y CAGR+3.3%

10Y CAGR+6.0%

Home Depot's EBITDA was $24.4B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 1.8% from the prior year.

Net Income

$14.2B

YoY-4.4%

5Y CAGR+1.9%

10Y CAGR+7.3%

Home Depot reported $14.2B in net income in fiscal year 2026. This represents a decrease of 4.4% from the prior year.

EPS (Diluted)

$14.23

YoY-4.6%

5Y CAGR+3.6%

10Y CAGR+10.1%

Home Depot earned $14.23 per diluted share (EPS) in fiscal year 2026. This represents a decrease of 4.6% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$12.6B

YoY-22.5%

5Y CAGR-5.0%

10Y CAGR+4.9%

Home Depot generated $12.6B in free cash flow in fiscal year 2026, representing cash available after capex. This represents a decrease of 22.5% from the prior year.

Cash & Debt

$1.4B

YoY+1.5%

5Y CAGR-26.9%

10Y CAGR-8.2%

Home Depot held $1.4B in cash against $49.4B in long-term debt as of fiscal year 2026.

Dividends Per Share

$9.20

YoY+2.2%

5Y CAGR+8.9%

10Y CAGR+14.6%

Home Depot paid $9.20 per share in dividends in fiscal year 2026. This represents an increase of 2.2% from the prior year.

Shares Outstanding

996M

YoY+0.2%

5Y CAGR-1.6%

10Y CAGR-2.3%

Home Depot had 996M shares outstanding in fiscal year 2026. This represents an increase of 0.2% from the prior year.

Margins & Returns

Gross Margin

33.3%

YoY-0.1pp

5Y CAGR-0.6pp

10Y CAGR-0.9pp

Home Depot's gross margin was 33.3% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 0.1 percentage points from the prior year.

Operating Margin

12.7%

YoY-0.8pp

5Y CAGR-1.2pp

10Y CAGR-0.6pp

Home Depot's operating margin was 12.7% in fiscal year 2026, reflecting core business profitability. This is down 0.8 percentage points from the prior year.

Net Margin

8.6%

YoY-0.7pp

5Y CAGR-1.1pp

10Y CAGR+0.7pp

Home Depot's net profit margin was 8.6% in fiscal year 2026, showing the share of revenue converted to profit. This is down 0.7 percentage points from the prior year.

Return on Equity

110.5%

YoY-75.7pp

5Y CAGR-625.5pp

10Y CAGR-0.1pp

Home Depot's ROE was 110.5% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 75.7 percentage points from the prior year.

Capital Allocation

R&D Spending

N/A

Share Buybacks

YoY-100.0%

Home Depot spent $0 on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 100.0% from the prior year.

Capital Expenditures

$3.7B

YoY+5.6%

5Y CAGR+8.4%

10Y CAGR+9.4%

Home Depot invested $3.7B in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 5.6% from the prior year.

HD Income Statement

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Revenue	$164.7B+3.2%	$159.5B+4.5%	$152.7B-3.0%	$157.4B+4.1%	$151.2B+14.4%	$132.1B
Cost of Revenue	$109.8B+3.4%	$106.2B+4.4%	$101.7B-2.8%	$104.6B+4.3%	$100.3B+15.0%	$87.3B
Gross Profit	$54.9B+2.9%	$53.3B+4.6%	$51.0B-3.4%	$52.8B+3.8%	$50.8B+13.3%	$44.9B
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$30.7B+6.8%	$28.7B+8.1%	$26.6B+1.2%	$26.3B+3.5%	$25.4B+3.9%	$24.4B
Operating Income	$20.9B-3.0%	$21.5B-0.8%	$21.7B-9.8%	$24.0B+4.3%	$23.0B+26.1%	$18.3B
Interest Expense	$2.4B+3.9%	$2.3B+19.5%	$1.9B+20.2%	$1.6B+20.0%	$1.3B0.0%	$1.3B
Income Tax	$4.4B-3.3%	$4.6B-3.8%	$4.8B-11.0%	$5.4B+1.3%	$5.3B+29.0%	$4.1B
Net Income	$14.2B-4.4%	$14.8B-2.2%	$15.1B-11.5%	$17.1B+4.1%	$16.4B+27.7%	$12.9B
EPS (Diluted)	$14.23-4.6%	$14.91-1.3%	$15.11-9.5%	$16.69+7.5%	$15.53+30.1%	$11.94

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Revenue	N/A	$41.4B-8.7%	$45.3B+13.6%	$39.9B+9.9%	$36.3B-9.8%	$40.2B-6.9%	$43.2B+18.6%	$36.4B
Cost of Revenue	N/A	$27.5B-8.7%	$30.2B+14.2%	$26.4B+8.8%	$24.3B-9.5%	$26.8B-6.8%	$28.8B+19.9%	$24.0B
Gross Profit	N/A	$13.8B-8.7%	$15.1B+12.4%	$13.5B+12.1%	$12.0B-10.6%	$13.4B-6.9%	$14.4B+15.9%	$12.4B
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	$7.6B-1.6%	$7.8B+3.1%	$7.5B+9.7%	$6.9B-4.9%	$7.2B+1.0%	$7.1B+7.2%	$6.7B
Operating Income	N/A	$5.4B-18.3%	$6.6B+27.7%	$5.1B+15.6%	$4.4B-18.0%	$5.4B-17.1%	$6.5B+28.6%	$5.1B
Interest Expense	N/A	$628.0M+9.2%	$575.0M-6.5%	$615.0M+21.1%	$508.0M-18.7%	$625.0M+9.1%	$573.0M+18.1%	$485.0M
Income Tax	N/A	$1.2B-20.5%	$1.5B+31.1%	$1.1B+33.3%	$832.0M-29.2%	$1.2B-20.8%	$1.5B+41.2%	$1.1B
Net Income	N/A	$3.6B-20.9%	$4.6B+32.6%	$3.4B+8.4%	$3.2B-13.2%	$3.6B-20.0%	$4.6B+26.7%	$3.6B
EPS (Diluted)	N/A	$3.62-21.0%	$4.58+32.8%	$3.45	N/A	$3.67-20.2%	$4.60+26.7%	$3.63

HD Balance Sheet

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Total Assets	$105.1B+6.0%	$99.2B+25.2%	$79.2B+3.7%	$76.4B-0.2%	$76.6B+5.5%	$72.6B
Current Assets	$34.4B-0.4%	$34.5B+5.8%	$32.6B+0.6%	$32.4B-4.3%	$33.9B+10.4%	$30.7B
Cash & Equivalents	$1.4B+1.5%	$1.4B-67.9%	$4.3B+238.4%	$1.3B-55.7%	$2.8B-57.2%	$6.6B
Inventory	$25.8B+0.2%	$25.8B+14.9%	$22.4B-11.6%	$25.4B+0.3%	$25.3B+31.9%	$19.2B
Accounts Receivable	$5.6B-4.9%	$5.9B+43.4%	$4.1B-2.6%	$4.2B+7.0%	$3.9B+8.6%	$3.6B
Goodwill	$22.3B+14.2%	$19.6B+131.2%	$8.5B+13.7%	$7.4B0.0%	$7.5B+4.4%	$7.1B
Total Liabilities	$92.3B+1.2%	$91.2B+17.8%	$77.4B+1.8%	$76.0B-2.9%	$78.3B+10.5%	$70.8B
Current Liabilities	$32.4B+2.6%	$31.6B+29.7%	$24.4B-4.3%	$25.4B-16.3%	$30.4B+9.5%	$27.8B
Long-Term Debt	$49.4B+4.3%	$47.3B+12.6%	$42.1B+2.8%	$40.9B+4.5%	$39.2B+12.9%	$34.7B
Total Equity	$12.8B+61.1%	$8.0B+337.1%	$1.8B+402.8%	$362.0M+121.2%	-$1.7B-197.8%	$1.7B
Retained Earnings	$94.5B+4.3%	$90.7B+6.6%	$85.0B+8.1%	$78.7B+12.6%	$69.8B+15.4%	$60.5B

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Total Assets	$105.1B-1.1%	$106.3B+6.2%	$100.0B+0.9%	$99.2B+3.2%	$96.1B-1.2%	$97.3B+0.4%	$96.8B+22.2%	$79.2B
Current Assets	$34.4B-4.8%	$36.1B+2.0%	$35.4B+2.5%	$34.5B+9.0%	$31.7B-3.8%	$32.9B+2.1%	$32.3B-1.1%	$32.6B
Cash & Equivalents	$1.4B-17.5%	$1.7B-39.9%	$2.8B+104.8%	$1.4B-17.5%	$1.7B+8.4%	$1.5B-5.1%	$1.6B-62.2%	$4.3B
Inventory	$25.8B-1.5%	$26.2B+5.5%	$24.8B-3.6%	$25.8B+9.9%	$23.5B-1.9%	$23.9B+3.6%	$23.1B+2.9%	$22.4B
Accounts Receivable	$5.6B-17.3%	$6.8B+15.1%	$5.9B-0.1%	$5.9B+20.0%	$4.9B-15.2%	$5.8B+5.1%	$5.5B+34.1%	$4.1B
Goodwill	$22.3B+0.3%	$22.3B+13.5%	$19.6B+0.3%	$19.6B+0.5%	$19.5B+0.2%	$19.4B+0.1%	$19.4B+129.4%	$8.5B
Total Liabilities	$92.3B-2.0%	$94.2B+5.3%	$89.4B-2.0%	$91.2B+1.9%	$89.5B-2.2%	$91.5B-1.0%	$92.4B+19.4%	$77.4B
Current Liabilities	$32.4B-5.7%	$34.4B+11.4%	$30.8B-2.4%	$31.6B+10.2%	$28.7B-1.5%	$29.1B+3.4%	$28.1B+15.5%	$24.4B
Long-Term Debt	$49.4B+6.6%	$46.3B+0.9%	$45.9B-3.0%	$47.3B-7.8%	$51.4B+2.6%	$50.1B-3.5%	$51.9B+23.3%	$42.1B
Total Equity	$12.8B+5.8%	$12.1B+13.6%	$10.7B+34.1%	$8.0B+19.8%	$6.6B+14.8%	$5.8B+30.9%	$4.4B+142.9%	$1.8B
Retained Earnings	$94.5B+0.3%	$94.3B+1.4%	$92.9B+2.5%	$90.7B+1.3%	$89.5B+0.9%	$88.8B+1.6%	$87.4B+2.7%	$85.0B

HD Cash Flow Statement

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Operating Cash Flow	$16.3B-17.6%	$19.8B-6.4%	$21.2B+44.9%	$14.6B-11.8%	$16.6B-12.0%	$18.8B
Capital Expenditures	$3.7B+5.6%	$3.5B+8.0%	$3.2B+3.4%	$3.1B+21.6%	$2.6B+4.2%	$2.5B
Free Cash Flow	$12.6B-22.5%	$16.3B-9.0%	$17.9B+56.1%	$11.5B-17.9%	$14.0B-14.5%	$16.4B
Investing Cash Flow	-$9.0B+57.3%	-$21.0B-344.7%	-$4.7B-50.6%	-$3.1B-5.8%	-$3.0B+70.8%	-$10.2B
Financing Cash Flow	-$7.7B-1011.5%	-$694.0M+95.5%	-$15.4B-40.5%	-$11.0B+42.5%	-$19.1B-541.0%	-$3.0B
Dividends Paid	$9.2B+2.5%	$8.9B+6.5%	$8.4B+7.6%	$7.8B+11.5%	$7.0B+8.3%	$6.5B
Share Buybacks	$0-100.0%	$649.0M-91.8%	$8.0B+18.7%	$6.7B-54.8%	$14.8B+1772.2%	$791.0M

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Operating Cash Flow	$3.3B-16.5%	$4.0B-13.6%	$4.6B+7.4%	$4.3B-7.4%	$4.7B+10.3%	$4.2B-21.7%	$5.4B-1.6%	$5.5B
Capital Expenditures	$1.1B+17.8%	$898.0M-2.1%	$917.0M+13.8%	$806.0M-26.8%	$1.1B+34.6%	$818.0M+13.8%	$719.0M-15.1%	$847.0M
Free Cash Flow	$2.3B-26.4%	$3.1B-16.5%	$3.7B+5.9%	$3.5B-1.4%	$3.6B+4.5%	$3.4B-27.2%	$4.7B+0.9%	$4.7B
Investing Cash Flow	-$1.2B+79.3%	-$5.9B-511.1%	-$961.0M-3.2%	-$931.0M+16.8%	-$1.1B-37.5%	-$814.0M+95.5%	-$18.3B-2101.0%	-$830.0M
Financing Cash Flow	-$2.5B-432.4%	$746.0M+133.5%	-$2.2B+40.8%	-$3.8B-12.8%	-$3.3B+4.2%	-$3.5B-133.9%	$10.3B+347.4%	-$4.1B
Dividends Paid	$2.3B0.0%	$2.3B0.0%	$2.3B+0.1%	$2.3B+2.3%	$2.2B0.0%	$2.2B+0.1%	$2.2B+0.1%	$2.2B
Share Buybacks	$0	$0	$0	$0	$0	$0	$0-100.0%	$649.0M

HD Financial Ratios

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Gross Margin	33.3%-0.1pp	33.4%+0.0pp	33.4%-0.2pp	33.5%-0.1pp	33.6%-0.3pp	34.0%
Operating Margin	12.7%-0.8pp	13.5%-0.7pp	14.2%-1.1pp	15.3%+0.0pp	15.2%+1.4pp	13.8%
Net Margin	8.6%-0.7pp	9.3%-0.6pp	9.9%-1.0pp	10.9%0.0pp	10.9%+1.1pp	9.7%
Return on Equity	110.5%-75.7pp	186.2%-645.7pp	831.9%-3894.7pp	4726.5%	N/A	736.0%
Return on Assets	13.5%-1.5pp	14.9%-4.2pp	19.1%-3.3pp	22.4%+0.9pp	21.5%+3.7pp	17.7%
Current Ratio	1.06-0.0	1.09-0.2	1.34+0.1	1.27+0.2	1.110.0	1.10
Debt-to-Equity	3.86-2.1	5.95-17.2	23.11-89.9	113.02+135.9	-22.91-42.8	19.85
FCF Margin	7.7%-2.6pp	10.2%-1.5pp	11.8%+4.5pp	7.3%-2.0pp	9.3%-3.1pp	12.4%

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Gross Margin	N/A	33.4%0.0pp	33.4%-0.4pp	33.8%+0.7pp	33.1%-0.3pp	33.4%0.0pp	33.4%-0.8pp	34.1%
Operating Margin	N/A	12.9%-1.5pp	14.5%+1.6pp	12.9%+0.6pp	12.3%-1.2pp	13.5%-1.7pp	15.1%+1.2pp	14.0%
Net Margin	N/A	8.7%-1.3pp	10.1%+1.4pp	8.6%-0.1pp	8.7%-0.3pp	9.1%-1.5pp	10.6%+0.7pp	9.9%
Return on Equity	N/A	29.7%-13.0pp	42.7%-0.5pp	43.2%-4.6pp	47.7%-15.3pp	63.0%-40.1pp	103.2%-94.6pp	197.8%
Return on Assets	N/A	3.4%-1.2pp	4.5%+1.1pp	3.5%+0.2pp	3.3%-0.4pp	3.8%-1.0pp	4.7%+0.2pp	4.5%
Current Ratio	1.060.0	1.05-0.1	1.15+0.1	1.09-0.0	1.11-0.0	1.13-0.0	1.15-0.2	1.34
Debt-to-Equity	3.86+0.0	3.82-0.5	4.31-1.6	5.95-1.8	7.74-0.9	8.65-3.1	11.74-11.4	23.11
FCF Margin	N/A	7.5%-0.7pp	8.2%-0.6pp	8.8%-1.0pp	9.8%+1.3pp	8.5%-2.4pp	10.9%-1.9pp	12.8%

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Frequently Asked Questions

What is Home Depot's annual revenue?

Home Depot (HD) reported $164.7B in total revenue for fiscal year 2026. This represents a 3.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Home Depot's revenue growing?

Home Depot (HD) revenue grew by 3.2% year-over-year, from $159.5B to $164.7B in fiscal year 2026.

Is Home Depot profitable?

Yes, Home Depot (HD) reported a net income of $14.2B in fiscal year 2026, with a net profit margin of 8.6%.

What is Home Depot's EBITDA?

Home Depot (HD) had EBITDA of $24.4B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Home Depot have?

As of fiscal year 2026, Home Depot (HD) had $1.4B in cash and equivalents against $49.4B in long-term debt.

What is Home Depot's gross margin?

Home Depot (HD) had a gross margin of 33.3% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.

What is Home Depot's operating margin?

Home Depot (HD) had an operating margin of 12.7% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.

What is Home Depot's net profit margin?

Home Depot (HD) had a net profit margin of 8.6% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.

Does Home Depot pay dividends?

Yes, Home Depot (HD) paid $9.20 per share in dividends during fiscal year 2026.

What is Home Depot's return on equity (ROE)?

Home Depot (HD) has a return on equity of 110.5% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.

What is Home Depot's free cash flow?

Home Depot (HD) generated $12.6B in free cash flow during fiscal year 2026. This represents a -22.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Home Depot's operating cash flow?

Home Depot (HD) generated $16.3B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.

What are Home Depot's total assets?

Home Depot (HD) had $105.1B in total assets as of fiscal year 2026, including both current and long-term assets.

What are Home Depot's capital expenditures?

Home Depot (HD) invested $3.7B in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.

How many shares does Home Depot have outstanding?

Home Depot (HD) had 996M shares outstanding as of fiscal year 2026.

What is Home Depot's current ratio?

Home Depot (HD) had a current ratio of 1.06 as of fiscal year 2026, which is considered adequate.

What is Home Depot's debt-to-equity ratio?

Home Depot (HD) had a debt-to-equity ratio of 3.86 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Home Depot's return on assets (ROA)?

Home Depot (HD) had a return on assets of 13.5% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.

What is Home Depot's Altman Z-Score?

Home Depot (HD) has an Altman Z-Score of 5.60, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Home Depot's Piotroski F-Score?

Home Depot (HD) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Home Depot's earnings high quality?

Home Depot (HD) has an earnings quality ratio of 1.15x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Home Depot cover its interest payments?

Home Depot (HD) has an interest coverage ratio of 8.7x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Home Depot?

Home Depot (HD) scores 47 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.