Home Depot Revenue: Earnings & Valuation

Roman Peysakhovich

CEO

March 6, 2024

Key Home Depot Revenue Statistics

Home Depot generated $132.11 billion revenue in 2021 - up 19.85% compared to the previous year.
One Home Depot store makes around $175,000 per day.
Home Depot made about $405 million per day in 2021.
Home Depot's net worth was $372.2 billion on January 28, 2022.
Home Depot's net worth reached its peak at more than $427 billion in December of 2021.
Home Depot managed about 1.76 billion global transactions for customers in 2020.
There are 2,312 Home Depot locations across the world.
There are more than 200 Home Depot stores in California.
Home Depot has profit margins of more than 10%.
Home Depot's earnings per share increased to $11.94 - up about 30% in 2021.
Home Depot's has 1.078 billion total shares outstanding in 2021.
The average Home Depot customer is 50 years old.
Home Depot had more than 1.6 billion transactions in 2021.
Home Depot averaged more than $500 in sales per square foot of retail space in 2021.

Overview Of Home Depot

Home Depot Earnings

Home Depot Annual Revenue

Home Depot generated $132.11 billion revenue in 2021.
Home Depot's revenue for the 12 months preceding October 2021 was about $147.7 billion.
The Home Depot 2021 annual income increased about 17.6% compared to the previous year.
Home Depot's revenue from January 2021 to December 2021 was about $132 billion.

Home Depot's annual revenue covers all four quarters of the fiscal year. It tallies up all of the money that the company made prior to deducting expenses. As one of the largest hardware stores in the world, it reliably makes more than $100 billion per year.

Home Depot Quarterly Revenue

Home Depot's quarterly revenue for the final recording period of 2021 was about $36.8 billion.
The 2021 quarterly income increased about 9.8% compared to the previous year.
Home Depot brought in the highest revenue between April and July of 2021, accounting for $41.1 billion.

Home Depot's quarterly revenue may be impacted by seasonality. For example, customers are more likely to buy home and garden tools in the spring and summer. But indoor gardening tools do see a boost in the cooler months.

In 2021, Home Depot's quarterly revenue vastly outperformed the same time period from 2020. This may be partially due to the company recovering from some of the effects of the COVID-19 pandemic.

Home Depot Daily Revenue

Home Depot made about $405 million per day in 2021.
One Home Depot store makes about $175,000 revenue in a single day.
Home Depot's daily revenue increased in the latter half of 2021 compared to the first two quarters.

Home Depot doesn't publish information about its daily revenue. Presumably the number fluctuates based on the day of the week, season, and whether it's a holiday.

But some numbers can be calculated based on their annual and quarterly revenue reports. Then the average daily revenue for each store can be determined.

Home Depot Online Ecommerce Revenue

In the second quarter of 2021, the Home Depot online store sales were flattened compared to previous growth. This is likely because of the impacts of the COVID-19 pandemic.
In the second quarter of 2021, Home Depot fulfilled 55% of its online orders through its retail stores.
Home Depot's digital sales grew about 100% from mid-2020 to mid-2021.

Home Depot does most of its business in person. In 2017, only about 7% of the company's sales were online. This number rose during the 2020 pandemic, but the company did not publish exact figures.

A representative did state that online sales were about the same in 2021 as in 2020. But he added that more than half of all online sales were picked up in stores in 2021, which was not the case during 2020.

Number of Home Depot Customers & Customer Transactions

Home Depot managed about 1.76 billion global transactions for customers in 2020.
Home Depot's transactions rose 10% in 2020 compared to 2019.
About 5% of Home Depot's customer base is made up of professional contractors, who tend to buy a lot of equipment.

Home Depot doesn't keep hard numbers on the exact number of customers that it has. However, the company does know that it did more than 1.7 billion transactions in a year in 2020.

Assuming that most customers shopped more than once per year, that's still likely hundreds of millions of people.

Home Depot Gross Profit

Home Depot's gross profit from October 2020 to October 2021 was about $49.8 billion.
Home Depot's total gross profit for all of 2021 was about $44.85 billion.
Home Depot's annual gross profits have increased every year since 2010.

The gross profit for the company is determined by subtracting the cost of the sold goods from the total revenue. Home Depot's gross profits are nearly $50 billion per year, indicating that they're making far more for their sales than they paid for the products.

They manage this by buying in bulk, creating their own brand name products, and having exclusive contracts with different suppliers.

Home Depot Stock Price History

Home Depot's stock price was $366.54 on January 28, 2022.
Home Depot's highest ever closing stock price was $416.18, which happened in December of 2021.
The lowest Home Depot stock price for the past 52 weeks was $246.59.

Home Depot's stock history is long and detailed. The company has been traded publicly since 1981. At the time, shares were only $12 apiece.

Now that Home Depot is the largest hardware store in the US, shares cost upwards of $350. The company hit a historic high at the end of 2021, but the stock price has dipped at the beginning of 2022.

Home Depot Market Cap

Home Depot's market cap was $372.2 billion on January 28, 2022.
Home Depot's highest ever market cap was $428.7 billion in December of 2021.
Home Depot's market cap has almost quadrupled since 2005.

The market cap is calculated by multiplying the stock price by the number of available shares.

This gives you the total market value of the entire company. Since Home Depot's stock reached a historic peak at the end of 2021, this was also when the company's market cap peaked.

Home Depot Operating Income

In 2021, Home Depot's annual operating income was $22.3 billion.
Home Depot's annual operating income increased 26.7% in 2021 compared to 2020.
In 2020, Home Depot's operating income only increased 2% from the previous year.

Home Depot's operating income takes into account more expenses than the gross income. It accounts for the wages paid to employees, depreciation, and other operating expenses.

Though this is significantly less than the $50 billion in gross profit, it was still more than $22 billion in 2021.

Home Depot EBITDA

Home Depot's total annual EBITDA for 2021 was $20.8 billion.
In comparison to 2020, Home Depot's EBITDA increased by 14.7% in 2021.
Between 2019 and 2020, Home Depot's EBITDA only increased by 2.58%.

The EBITDA is Home Depot's earnings before interest, taxes, depreciation, and amortization.

This figure shows much of the net profits before investments are taken out of the equation. That gives you a better sense of exactly how much the company made, prior to investments like new stores being accounted for.

In 2021, Home Depot's EBITDA was over $20 billion. It increased by over 14% in comparison to the prior year.

Home Depot Net Income

Home Depot's net income was $12.87 billion in 2021.
In comparison to 2020, Home Depot's net income increased by 14.5% in 2021.
Home Depot's 2020 net income was barely more than 1% increased from the company's 2019 income.

Home Depot's net income shows a significantly different number from the company's EBITDA. It's a little more than half of that figure.

The $12.9 billion in 2021 more accurately represents the number that was distributed among the company shareholders. It also indicates that about $8 billion of Home Depot's profits was used for investment capital.

Home Depot EPS

Home Depot's earnings per share in 2021 were $11.94.
Home Depot's 2021 earnings per share increased 16.49% from the previous year.
Between 2018 and 2019, Home Depot's earnings per share increased 33.5%.

The earnings per share were calculated when the net profits were divided by the number of active shares. In total, each share generated about $12 of income over the year.

That was an increase of more than 16% from the prior year. Also worth noting was the massive 33% increase in EPS in 2019 compared to 2018.

Home Depot Shares Outstanding

Home Depot's shares outstanding declined slightly in 2021, falling from 1.097 billion to 1.078 billion.
In 2020, Home Depot's shares outstanding declined more than 4%.
Home Depot's shares outstanding also declined in 2019.

Home Depot's shares outstanding have decreased slightly from year to year for several years. Decreases like this generally happen when companies buy their shares back to take them off the open market.

By lowering the number of open shares, they increased the payout to each shareholder at the end of every quarter.

Number of Home Depot Stores

How many Home Depot stores are there in the world?

There are 2,312 global Home Depot locations as of March 2021.
Home Depot operates stores in the US, Mexico, and Canada.
There are 126 Home Depot stores in Mexico and 182 stores in Canada.

Home Depot operates stores in every country in North America. They have not yet expanded into Europe, Asia, Africa, or South America.

Most of the company's stores are concentrated in the US and its territories. However, Home Depot has also opened multiple new stores in Mexico every year for the past several years.

How many Home Depot stores are there in the US?

Home Depot had 1,985 stores in the US in 2020.
California has 234 Home Depot stores.
New York, Florida, and Texas all have over 100 Home Depot store locations each.

Every state in the US has at least one Home Depot, as do most US territories. Home Depot can be found in Puerto Rico and Washington D.C. Four states have more than 100 Home Depot locations, owing chiefly to their large populations and sprawling geography.

Number of Home Depot Employees

Home Depot reported having 504,800 employees in 2021, which was a 21.6% increase from the previous year.
Home Depot's number of employees increased by less than half a percent in 2020.
Home Depot's reported number of employees remained exactly the same from 2018 to 2019.

Home Depot employs people at every level of the business. Positions range from corporate marketer to warehouse worker to sales supervisor.

There are more than half a million employees in total, with the company hiring over 20% more personnel for the 2021 fiscal year.

The sudden increase in employees may have been due to the ending of COVID-19 restrictions. But impressively, the number of employees in 2020 did not decrease from the number in 2019.

Home Depot Assets & Liabilities Statistics

Home Depot Total Assets

Home Depot's total assets were about $70.6 billion in 2021.
In 2021, Home Depot's total assets increased by almost 38% compared to 2020.
Home Depot's total assets also increased by about 16.4% in 2020 compared to 2019.

Total assets are an important part of accounting for a business. The number refers to the assets that Home Depot has including inventory, cash on hand, and intangible assets.

Home Depot's assets increased by more than a third during 2021. And 2020 saw a 16% increase in assets as well, so this wasn't simply a rebound from the economic impact of the COVID-19 pandemic.

Home Depot Cash on Hand

Home Depot's cash on hand was about $7.9 billion in 2021.
Home Depot almost tripled its cash on hand in 2021 compared to 2020.
In 2020, Home Depot's cash on hand was just $2.1 billion.

In 2021, Home Depot increased its cash on hand by about 270%. That's nearly triple the amount that the company had in 2020. It's possible that Home Depot dipped into its cash reserves in order to retain employees during COVID-19 closures.

But the company didn't end 2020 with less cash than they had in 2019, either, which indicates there wasn't a massive loss.

Home Depot Long Term Debt

Home Depot's long term debt was about $35.8 billion in 2021.
Home Depot took on about 25% more debt in 2021 compared to 2020.
Home Depot's long term debt has steadily increased every year since 2013.

Home Depot has increased its long term debt every year since 2013. This isn't necessarily a red flag, as they have ample time to pay the loans back.

Some investors might find it curious that the company has accrued more debt as it grows. But the number of assets helpfully offsets the amount of debt.

Home Depot Total Liabilities

Home Depot's total liabilities in 2021 were about $23.2 billion.
Home Depot's 2021 liabilities increased more than 26% from their 2020 liabilities.

Home Depot's total liabilities have also seen a steady increase over the past several years.

Home Depot Shareholder Equity

Home Depot's shareholder equity for the final quarter of 2021 was $1.035 billion, the lowest point of the year.
The Home Depot shareholder equity in the third quarter of 2021 was $2.069 billion.
The Home Depot shareholder equity for the final quarter of 2020 was $1.535 billion.

The shareholder equity for Home Depot reached its lowest point in the fiscal year at the end of 2021.

This might be because of the debt that the company took on throughout the year. It was about half as much in the fourth quarter of 2021 as in the third quarter.

Home Depot Margins Statistics

Home Depot Profit Margins

Home Depot reported a profit margin at the end of October 2021 as about 10.8%.

Home Depot's profit margins vary slightly depending on the ratio and equation used. Each further margin on the list has a more specific calculation. The basic profit margin was calculated based on the company's revenue versus its income.

Home Depot Gross Margins

Home Depot's gross margins for the final quarter of 2021 were 33.7%.
Home Depot's gross margins for Q3 of 2021 were also 33.7%.
Home Depot's gross margins for the final quarter of 2020 were 34%.

The gross margins for Home Depot held strong through the last half of 2021, measuring 33.7% for both quarters. That's a massive margin for gross profit. In 2020, those margins were about 34%.

The company has retained a relatively steady gross margin despite a lot of growth and investment, indicating that careful financial planning is being done.

Home Depot Operating Margins

Home Depot's operating margins for 2021 were 14.2%.
Home Depot's operating margins for the final quarter of 2021 were 15.1%.
Home Depot's operating margins for the final quarter of 2020 were 14%.

Home Depot's operating margins show how much the company makes in terms of its profits minus the operating costs.

As with the operating sales, this number is much lower than the gross margins due to the high costs of operation.

But it still manages to be more than 14% on average, about half of the gross margins.

Home Depot EBITDA Margins

Home Depot's EBITDA margins for the final quarter of 2021 were 17%.
Home Depot's EBITDA margins grew steadily from Q1 to Q4 of 2021.
Home Depot's EBITDA margins for the final quarter of 2020 were 16%.

The EBITDA margins referred to all of the net profits, before investments and other various expenses were factored in. Home Depot had relatively high EBITDA margins at the end of 2021. The margins have remained steady but grown with each quarter of the 2021 fiscal year, indicating financial growth.

Home Depot Pre-Tax Profit Margins

Home Depot's pre-tax profit margins for the final quarter of 2021 were 14.2%.
Home Depot's pre-tax margins rose from 12.9% to 14.2% during 2021.
Home Depot's pre-tax margins for the final quarter of 2020 were 13%.

The pre-tax profit margins are essential to understand how efficient a company is. They show how much profit a company made after deducting operating expenses, but before deducting taxes.

Based on Home Depot's 2021 pre-tax profit margins, the company made about 14 cents for every dollar in revenue.

Home Depot Net Margins

Home Depot's net margins for the final quarter of 2021 were 10.8%.
The net margins for the final quarter of 2020 were just 0.8% lower.
Home Depot's net margins grew during each quarter of 2021.

The net margins are the final outcome once operating expenses, cost of goods, investments, and taxes have been deducted from the revenue.

Based on Home Depot's 2021 net margins, shareholders gained about 11 cents for every dollar of revenue that was generated.

Home Depot Price Ratios

Home Depot PE Ratio

Home Depot's PE ratio was 24.50 on January 28, 2022.
Home Depot's highest PE ratio in the past year was 27.82.

The PE ratio shows the current price of a company stock compared to the earnings per share.

Home Depot P/S Ratio

Home Depot's P/S ratio was 2.648 on January 28, 2022.
The high for the past year was 3.006 in December of 2021.

The price to sale ratio shows the difference between Home Depot's revenue and its stock price.

Home Depot Price/Book Ratio

The price to book ratio shows a company's market cap compared to its expected depreciation.

Home Depot's price to book ratio was 359.61 on January 28, 2022.
The price to book ratio has tripled over the past few years.

Home Depot Price-FCF Ratio

Home Depot's price to free cash flow ratio was 31.89 on January 28, 2022.
The price to free cash flow has more than doubled since 2016.

The price to free cash flow ratio shows how Home Depot's stock price compares to its cash on hand. Since the cash on hand increased so greatly in 2021, this ratio also increased accordingly.

Home Depot Net Worth

Home Depot's net worth was $372.2 billion on January 28, 2022.
Home Depot's net worth reached its peak at more than $427 billion in December of 2021.

Home Depot's net worth is based on the market cap of its shares. Some investors also calculate net worth based on assets minus liabilities. In this case, the company's net worth would be about $47 billion. That's what would be left if all liabilities were paid off.

Home Depot Other Ratios

Home Depot Current Ratio

Home Depot's ratio of current assets to liabilities for the final period of 2021 was 1.13.

Home Depot Quick Ratio

Home Depot's quick ratio for the final period of 2021 was 0.37, nearly unchanged from the previous quarter.

Home Depot Debt/Equity Ratio

Home Depot's debt to equity ratio for the final period of 2021 was almost 35.5.

Home Depot ROE

Home Depot's return on equity for the final period of 2021 was over 782%.

Home Depot ROA

Home Depot's return on assets for the final period of 2021 was about 22.2%.

Home Depot ROI

Home Depot's return on investment for the final period of 2021 was about 59.8%.

Home Depot Return on Tangible Equity

Home Depot's return on tangible equity for the final period of 2021 was -303.4%.

Frequently Asked Questions

What is the #1 selling item at Home Depot?

It's hard to determine exactly which item sells the best at Home Depot. There can be up to 40,000 products in a single store, which are all spread out across multiple departments.

Rather than publishing data on the exact items that sell most often, Home Depot has explained its top product categories.

The company's most popular category by far is for outdoor gardens and patio furniture.

This can cover everything from plants to garden tools to landscaping equipment to remodeling equipment. It even includes things like outdoor fire pits and barbecue setups.

As of 2021, Home Depot had sold more than $10 billion in products from their outdoor garden and patio section.

The second largest category is for indoor gardening. That includes house plants, flower pots, fertilizer, and many different garden tools.

How much does one Home Depot make a day?

Based on the revenue from 2021, it seems that the average Home Depot store makes around $175,000 per day.

Of course, the exact numbers will vary depending on the location and the day.

Home Depots have different advantages in different areas. In rural places, they're one of the most reliable spots for farmers and contractors to shop. In cities, they garner a lot of foot traffic.

It's possible that Home Depot's daily revenue fluctuates based on the season as well.

Since so much of the company's sales come from outdoor gardening and landscaping, it would make sense for their revenue to increase in the spring and summer months.

What is Home Depot best known for?

Home Depot is known for being one of the largest hardware stores in the US.

It sells tens of thousands of products across every industry imaginable. Unlike smaller local hardware stores, Home Depot also functions like a department store.

In terms of products, Home Depot is known for home improvement and DIY tools.

In fact, DIY homeowners make up a key part of the company's customer base! Home Depot's goal is to stock all the items that you might need to do basic home improvement jobs around the house.

For example, you'll find piping and plumbing gear, lighting fixtures, and equipment for outdoor work. But you'll also find paint, supplies for decorating, rugs, and carpet samples. If you're thinking about making any change to your home, Home Depot likely has the tools you want.

That said, they don't only sell home improvement tools. They're also a reliable supplier of heavy-duty supplies for contractors, plus the occasional odd novelty item.

Where is Home Depot most popular?

Home Depot has never expanded out of North America, but it operates stores in all three countries on the continent. Over the past few years, the company has opened multiple new locations in Mexico, branching further outside of the US.

In the US, the state with the most Home Depot retail locations is California.

There are 234 total stores in the area. New York, Texas, and Florida also all have over 100 stores. Every state in the US has at least one Home Depot.

California is also a geographically huge state with a vast population, though. When you narrow things down further, you find that only one of the top 10 locations is in California. Three of the top 10 locations are in Texas.

There are a whopping 20 locations in Houston, Texas, blowing all of the competition out of the water. In second place is San Antonio, Texas, which has 12 stores. Austin in Texas has nine stores.

By comparison, the only California city to make the list is San Diego. This location has nine stores.

How does Home Depot make so much money?

Home Depot has a robust business plan with three main elements. Each of these elements plays a major role in how the company makes money:

Home improvement services and products
Different customer segments
Revenue from products

Home Depot is more than just a hardware store. It has actually become the biggest niche home improvement store in the world, despite only operating on one continent.

It has consistently sold more and had better numbers than its chief competitor, Lowes.

Part of Home Depot's appeal is a sense of brand loyalty.

The company staffs teams of experts who can make suggestions for people's DIY projects, show people how to use equipment, and even lead workshops.

There have been workshops for kids as well as various installation services for appliances.

Home Depot's marketing also goes a long way. The company researches market trends to make sure they have the appropriate products for any given time. They often have seasonal sales and special discounts for longtime customers.

As for customers, Home Depot divides them based on whether they're individuals or professionals. Individuals are further divided into DIY and Do-It-For-Me.

With Do-It-For-Me customers, the company aims to provide installation assistance and expert feedback.

With DIY customers, the company aims to arm them with the confidence needed to finish any given project.

Professionals make up about 5% of the total customer base, but they're some of the biggest spenders. Home Depot has programs like loyalty discounts, credit cards, and wholesale pricing to outpace competing suppliers. The perks for professionals make them favored by contractors and remodelers alike.

Since many people can't afford to break the bank with a home remodel, Home Depot offers financing options for personal projects. This has helped the company to expand its customer base into sectors that don't have a lot of disposable capital at once.

How much does Home Depot lose to theft each year?

Home Depot does not publicize its exact losses to shoplifting. Though the company likely knows the percentage of total revenue that's shoplifted each year, they choose not to share it so they can protect their assets.

According to a CNBC report, though, Home Depot loses about $81 million in product per year. That might seem like a huge number, but it is relatively small in comparison to their billions in total earnings.

Many of the items at Home Depot are extremely difficult to shoplift due to their size or complexity. The most commonly shoplifted items are usually power tools. This is because power tools have a high monetary value while being relatively simple to conceal in a bag.

Home Depot frequently partners with pawn shops to identify and recover the company's stolen merchandise.

Some people have stated that there is a scam in which items are stolen from a location, then they're returned for store credit or cash. This seems like a risky scam to operate, particularly if the company's management is already aware of it.

Which state has the most Home Depots?

Like many corporate chains, you'll find the largest number of Home Depots in California. There are 234 locations in total, which makes up around 11% of all of Home Depot's retail locations. Based on California's population of nearly 40 million people, there's one location for every 169,000 people.

In Texas, there are 181 locations. Though Texas has the most Home Depots concentrated in one city, it has a similar population spread to California. There's a Home Depot for every 160,000 individuals in Texas.

Florida has 156 locations. This state has a lower ratio of stores to people. There's about one store for every 138,000 people, which might mean that it's easier for the average person to access a Home Depot.

Who owns Home Depot?

Home Depot is a publicly traded corporation. As the largest home improvement store in the world, it is owned by its shareholders. The company was founded more than 40 years ago. It went public in September of 1981, 41 years ago.

At the time that the company went public, shares were just $12 a piece. Now they're more than $300.

Of the company shares, nearly 70% are held by institutions. Another 4% are held by people inside Home Depot. Then 26% are held by investors in retail.

Home Depot was founded by four people: Pat Farrah, Ron Brill, Arthur Blank, and Bernard Marcus. Bernard Marcus is a billionaire today following the success of his company.

How much do Home Depot employees make?

Home Depot's wages depend somewhat on your location. Different states have different minimum wages and minimum benefits. One estimate shows that the average pay per hour for an employee is about $13.42.

Sales associates get paid an average of $12 per hour, while supervisors are paid an average of $17 per hour. Warehouse workers may be paid anywhere from $12 to $19 per hour.

It seems like people in the corporate office make more on average than people on the sales floor. In addition, having extra tasks or qualifications like operating a forklift will lead to a pay increase.

Sources

Conclusion

Home Depot is one of the largest hardware stores in the world. We hope these stats have shown you more about the company's financials and inner workings!