Home Depot Operating Income vs Direct Expenses Analysis

HD
 Stock
  

USD 274.27  0.40  0.15%   

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 Operating Income and its Direct Expenses accounts. Please check Risk vs Return Analysis.

Operating Income vs Direct Expenses

Operating Income vs Direct Expenses Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Home Depot Operating Income account and Direct Expenses. At this time, the significance of the direction appears to have totally related.
The correlation between Home Depot's Operating Income and Direct Expenses is 1.0. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Direct Expenses 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 Operating Income and Direct Expenses is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of Home Depot are associated (or correlated) with its Direct Expenses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Direct Expenses has no effect on the direction of Operating Income i.e., Home Depot's Operating Income and Direct Expenses go up and down completely randomly.

Correlation Coefficient

1.0
Relationship DirectionPositive 
Relationship StrengthVery Strong

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. Operating income is a measure of financial performance before the deduction of Interest Expense; Income Tax Expense and other Non-Operating items. It is calculated as Gross Profit minus Operating Expenses.

Direct Expenses

Most indicators from Home Depot 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. Please check Risk vs Return Analysis.Home Depot Issuance Repayment of Debt Securities is projected to based on the last few years of reporting. The past year's Issuance Repayment of Debt Securities was at 2.48 Billion. The current year Net Cash Flow Investment Acquisitions and Disposals is expected to grow to about 166.5 M, whereas Issuance Purchase of Equity Shares is projected to grow to (7.9 B).
 2010 2015 2020 2022 (projected)
Consolidated Income6.34 B11.24 B16.43 B15.42 B
Direct Expenses54.22 B72.65 B100.33 B98.73 B

Home Depot fundamental ratios Correlations

1.00.990.990.990.990.60.90.80.911.0-0.640.971.0-0.68-0.680.960.990.920.990.911.0-0.16
1.01.01.01.01.00.660.90.790.911.0-0.630.981.0-0.72-0.720.960.990.921.00.921.0-0.11
0.991.00.990.990.990.660.870.740.881.0-0.560.990.99-0.74-0.740.930.980.891.00.891.0-0.16
0.991.00.991.01.00.710.910.790.930.99-0.640.970.99-0.73-0.730.960.990.930.990.941.0-0.04
0.991.00.991.01.00.710.90.780.910.99-0.610.980.99-0.74-0.740.960.990.920.990.921.0-0.06
0.991.00.991.01.00.710.920.810.930.99-0.650.960.99-0.73-0.730.970.990.940.990.941.0-0.02
0.60.660.660.710.710.710.590.410.620.62-0.30.680.6-0.75-0.750.630.620.630.660.660.660.47
0.90.90.870.910.90.920.590.971.00.89-0.90.790.9-0.53-0.530.990.951.00.871.00.90.2
0.80.790.740.790.780.810.410.970.960.79-0.970.640.8-0.35-0.350.930.860.950.740.940.790.21
0.910.910.880.930.910.930.621.00.960.91-0.880.810.91-0.56-0.560.990.951.00.881.00.910.19
1.01.01.00.990.990.990.620.890.790.91-0.620.971.0-0.7-0.70.950.990.921.00.911.0-0.15
-0.64-0.63-0.56-0.64-0.61-0.65-0.3-0.9-0.97-0.88-0.62-0.44-0.640.190.19-0.82-0.72-0.87-0.56-0.86-0.63-0.35
0.970.980.990.970.980.960.680.790.640.810.97-0.440.97-0.77-0.770.870.940.820.990.820.98-0.21
1.01.00.990.990.990.990.60.90.80.911.0-0.640.97-0.68-0.680.960.990.920.990.911.0-0.16
-0.68-0.72-0.74-0.73-0.74-0.73-0.75-0.53-0.35-0.56-0.70.19-0.77-0.681.0-0.61-0.66-0.57-0.74-0.59-0.72-0.01
-0.68-0.72-0.74-0.73-0.74-0.73-0.75-0.53-0.35-0.56-0.70.19-0.77-0.681.0-0.61-0.66-0.57-0.74-0.59-0.72-0.01
0.960.960.930.960.960.970.630.990.930.990.95-0.820.870.96-0.61-0.610.980.990.930.990.960.09
0.990.990.980.990.990.990.620.950.860.950.99-0.720.940.99-0.66-0.660.980.960.980.960.99-0.06
0.920.920.890.930.920.940.631.00.951.00.92-0.870.820.92-0.57-0.570.990.960.891.00.920.18
0.991.01.00.990.990.990.660.870.740.881.0-0.560.990.99-0.74-0.740.930.980.890.891.0-0.16
0.910.920.890.940.920.940.661.00.941.00.91-0.860.820.91-0.59-0.590.990.961.00.890.920.21
1.01.01.01.01.01.00.660.90.790.911.0-0.630.981.0-0.72-0.720.960.990.921.00.92-0.11
-0.16-0.11-0.16-0.04-0.06-0.020.470.20.210.19-0.15-0.35-0.21-0.16-0.01-0.010.09-0.060.18-0.160.21-0.11
Click cells to compare fundamentals

Home Depot Account Relationship Matchups

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 Depot. 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 markets does not have a solid backing from leading economists and market statisticians.

Home Depot Implied Volatility

    
  47.95  
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.

Current Sentiment - HD

Home Depot Investor Sentiment

Nearly all of Macroaxis users are currently bullish on Home Depot. What is your judgment towards investing in Home Depot? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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Please check Risk vs Return Analysis. 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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When running Home Depot 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 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 Depot 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 YOY
0.06
Market Capitalization
281.9 B
Quarterly Revenue Growth YOY
0.038
Return On Assets
0.2
Return On Equity
0.85
The market value of Home Depot is measured differently than its book value, which is the value of Home Depot 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 Home Depot value 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.