Ted Decker: 'Our strategic priorities remain creating the best interconnected shopping experience, growing our pro wallet share through a unique ecosystem of capabilities, and building new stores.'
— Ted Decker
03Detailed Report
HD
The Home Depot Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 21, 2026
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Executive Summary
The Home Depot Inc (HD) delivered a solid financial performance for Q4 2024, with revenues of $39.7 billion marking a 14% increase year-over-year, driven by an extra week of sales in the fiscal year. Adjusted diluted earnings per share rose to $3.13, up 9.4% from a year earlier, reflecting the company's resilience amidst challenging macroeconomic conditions. The gains were supported by strategic investments in supply chain improvements and the integration of the newly acquired SRS company, signaling ongoing operational enhancements. However, the company highlighted softness in large remodeling projects, posing potential headwinds for future growth. The overall outlook for 2025 anticipates a modest sales growth of approximately 1% against continuing pressures from interest rates and housing turnover.
Key Performance Indicators
Revenue
Increasing
39.70B
QoQ: -1.28% | YoY: 14.14%
Gross Profit
Increasing
13.03B
32.83% margin
QoQ: -2.91% | YoY: 13.26%
Operating Income
Increasing
4.50B
QoQ: -17.04% | YoY: 8.50%
Net Income
Increasing
3.00B
QoQ: -17.85% | YoY: 7.00%
EPS
Increasing
3.02
QoQ: -17.93% | YoY: 6.71%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Performance:
- Revenue: $39.7 billion (up 14% YoY, up 0.8% QoQ)
- Net Income: $2.997 billion (up 7% YoY)
- EPS: $3.13, up 9.4% YoY
- Operating Margin: 11.3% (down from 11.9% YoY)
- Gross Margin: 32.8% (down 25 bps YoY)
- Total Assets: $96.12 billion
- Total Liabilities: $89.48 billion
Cash Flow:
- Operating Cash Flow: $4.671 billion
- Free Cash Flow: $3.57 billion
- Capital Expenditures: Approximately $1.1 billion for Q4 2024
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
39.70B
14.14%
-1.28%
Gross Profit
13.03B
13.26%
-2.91%
Operating Income
4.50B
8.50%
-17.04%
Net Income
3.00B
7.00%
-17.85%
EPS
3.02
6.71%
-17.93%
Key Financial Ratios
Gross Profit Margin
Fair
32.80%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
11.30%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
7.55%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Fair
3.12%
Return on assets is acceptable but below top-tier companies
Return on Equity
Strong
45.10%
Return on equity demonstrates excellent capital efficiency and value creation
Current Ratio
Adequate
1.11
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
9.38
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Growth
33.79x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
61.01x
Very high premium suggests asset-light business model or lofty expectations
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