HOME DEPOT INC
For the period ended May 4, 2025. Filed May 28, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 4, 2025 · Filed May 28, 2025
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Non-GAAP Financial Measures
To provide clarity on our operating performance, we supplement our reporting with certain non-GAAP financial measures. However, this supplemental information should not be considered in isolation or as a substitute for the related GAAP measures. Non-GAAP financial measures presented herein may differ from similar measures used by other companies.
Return on Invested Capital
We believe ROIC is meaningful for management, investors and ratings agencies because it measures how effectively we deploy our capital base. ROIC is a non-GAAP profitability measure, not a measure of financial performance under GAAP. We define ROIC as NOPAT, a non-GAAP financial measure, for the most recent twelve-month period, divided by average debt and equity. We define average debt and equity as the average of beginning and ending long-term debt (including current installments) and equity for the most recent twelve-month period.
The following table presents the calculation of ROIC, together with a reconciliation of NOPAT to net earnings (the most comparable GAAP financial measure):
| Twelve Months Ended (3) | ||
|---|---|---|
| dollars in millions | May 4, 2025 (2) | April 28,2024 |
| Net earnings | $14,639 | $14,870 |
| Interest and other, net | 2,283 | 1,752 |
| Provision for income taxes | 4,658 | 4,595 |
| Operating income | 21,580 | 21,217 |
| Income tax adjustment (1) | (5,151) | (5,021) |
| NOPAT | $16,429 | $16,196 |
| Average debt and equity | $52,413 | $43,629 |
| ROIC | 31.3% | 37.1% |
(1)Income tax adjustment is defined as operating income multiplied by our effective tax rate for the trailing twelve months.
(2)The twelve months ended May 4, 2025 include operating results for SRS since the acquisition date of June 18, 2024, consistent with our consolidated financial statements.
(3)The fourth quarter of fiscal 2024 includes 14 weeks. All other quarters include 13 weeks.
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