13) Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended January 31, 2021, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

9) Operating Profit Margin (%)

FYE 2/20/20: %

FYE 1/31/21: %

Better/Worse:

14) Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended January 31, 2021, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

10) Net Profit Margin (%)

FYE 2/20/20: %

FYE 1/31/21: %

Better/Worse:

15)Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended January 31, 2021, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

11) Return on Assets (%)

FYE 2/20/20: %

FYE 1/31/21: %

Better/Worse:

16)Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended January 31, 2021, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

12) Return on Common Equity (%)

FYE 2/20/20: %

FYE 2/3/19: %

Better/Worse:

17)Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended January 31, 2021, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

13) Return on Invested Capital (%)

FYE 2/20/20: %

FYE 1/31/21: %

Better/Worse:

18)Ratio Analysis

Based on the financial statements of Home Depot for the fiscal year that ended January 31, 2021, calculate the following ratios for the last two fiscal years and indicate whether they are getting better or worse:

14) Basic Earning Power (%)

FYE 2/20/20: %

FYE 1/31/21: %

Better/Worse:

Table of Contents THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS January 31, 2021 February 2, 2020 $ in millions, except per share data Assets Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Operating lease right-of-use assets Goodwill Other assets Total assets 7,895 $ 2,992 16,627 963 28,477 24,705 5,962 7,126 4,311 70,581 $ 2,133 2,106 14,531 1,040 19,810 22,770 5,595 2,254 807 51,236 $ $ $ 974 7,787 1,494 605 Liabilities and Stockholders' Equity Current liabilities: Short-term debt Accounts payable Accrued salaries and related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Current operating lease liabilities Other accrued expenses Total current liabilities Long-term debt, excluding current installments Long-term operating lease liabilities Deferred income taxes Other long-term liabilities Total liabilities 11,606 2,463 774 2,823 193 1,416 828 3,063 23,166 35,822 5,356 1,131 1,807 67,282 2,116 55 1,839 828 2,677 18,375 28,670 5,066 706 1,535 54,352 89 Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,789 shares at January 31, 2021 and 1,786 shares at February 2, 2020; outstanding: 1,077 shares at January 31, 2021 and February 2, 2020 Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 712 shares at January 31, 2021 and 709 shares at February 2, 2020 Total stockholders' equity (deficit) Total liabilities and stockholders' equity 11,540 58,134 (671) 89 11,001 51,729 (739) (65,793) 3,299 70,581 $ (65,196) (3,116) 51,236 $ See accompanying notes to consolidated financial statements. Fiscal 2019 110,225 $ 72,653 37,572 Fiscal 2018 108,203 71,043 37,160 19,740 1,989 THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF EARNINGS Fiscal in millions, except per share data 2020 Net sales $ 132,110 $ Cost of sales 87,257 Gross profit 44,853 Operating expenses: Selling, general and administrative 24,447 Depreciation and amortization 2,128 Impairment loss Total operating expenses 26,575 Operating income 18,278 Interest and other income) expense: Interest and investment income (47) Interest expense 1,347 Other Interest and other, net 1,300 Earnings before provision for income taxes 16,978 Provision for income taxes 4,112 Net earnings $ 12,866 $ 19,513 1,870 247 21,630 15,530 21,729 15,843 (73) 1,201 1,128 14,715 3,473 11,242 $ (93) 1,051 16 974 14,556 3,435 11,121 Basic weighted average common shares Basic earnings per share 1,074 11.98 1,093 10.29 $ 1,137 9.78 $ $ Diluted weighted average common shares Diluted earnings per share 1,078 11.94 1,097 10.25 $ 1,143 9.73 $ $ Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks. See accompanying notes to consolidated financial statements. Table of Contents Fiscal 2018 11,121 THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Fiscal in millions 2020 2019 Net earnings $ 12,866 $ 11,242 $ Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 60 53 Cash flow hedges 8 8 Other 3 Total other comprehensive income (loss) 68 64 Comprehensive income $ 12,934 $ 11,306 $ (267) 53 8 (206) 10,915 Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks. See accompanying notes to consolidated financial statements. Fiscal 2018 THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Fiscal Fiscal in millions 2020 2019 Common Stock: Balance at beginning of year $ 89 $ 89 $ Shares issued under employee stock plans Balance at end of year 89 89 89 89 Paid-in Capital: Balance at beginning of year Shares issued under employee stock plans Stock-based compensation expense Balance at end of year 11,001 229 310 11,540 10,578 172 251 11,001 10,192 104 282 10,578 51,729 Retained Earnings: Balance at beginning of year Cumulative effect of accounting changes Net earnings Cash dividends Other Balance at end of year 12,866 (6,451) (10) 58,134 46,423 26 11,242 (5,958) (4) 51.729 39,935 75 11,121 (4,704) (4) 46,423 (739) (566) Accumulated Other Comprehensive Income (Loss): Balance at beginning of year Cumulative effect of accounting changes Foreign currency translation adjustments, net of tax Cash flow hedges, net of tax Other, net of tax Balance at end of year (772) (31) 53 60 (267) 53 8 8 3 8 (671) (739) (772) Treasury Stock: Balance at beginning of year Repurchases of common stock Balance at end of year Total stockholders' equity (deficit) (65,196) (597) (65,793) 3,299 $ (58,196) (7.000) (65, 196 (3,116) $ (48,196) (10,000) (58,196) (1,878) Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks. Table of Contents Fiscal 2019 Fiscal 2018 11,242 $ 11,121 2,296 251 THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal in millions 2020 Cash Flows from Operating Activities: Net earnings $ 12,866 $ Reconciliation of net earnings to net cash provided by operating activities: Depreciation and amortization 2,519 Stock-based compensation expense 310 Impairment loss Changes in receivables, net (465) Changes in merchandise inventories (1,657) Changes in other current assets 43 Changes in accounts payable and accrued expenses 5,118 Changes in deferred revenue 702 Changes in income taxes payable (149) Changes in deferred income taxes (569) Other operating activities 121 Net cash provided by operating activities 18,839 (170) (593) (135) 32 334 44 202 184 13,687 2,152 282 247 33 (1,244) (257) 870 80 (42) 26 (103) 13,165 (2,678) Cash Flows from Investing Activities: Capital expenditures Payments for businesses acquired, net Other investing activities Net cash used in investing activities (2,463) (7,780) 73 (10,170) (2,442) (21) 47 (2,416) 25 (2,653) Cash Flows from Financing Activities: Repayments of short-term debt, net Proceeds from long-term debt, net of discounts and premiums Repayments of long-term debt Repurchases of common stock Proceeds from sales of common stock Cash dividends Other financing activities Net cash used in financing activities Change in cash and cash equivalents Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (974) 7,933 (2,872) (791) 326 (6,451) (154) (2,983) 5,686 76 2,133 7,895 $ (365) 3,420 (1,070) (6,965) 280 (5,958) (140) (10,798) 236 119 1,778 2,133 $ (220) 3,466 (1,209) (9,963) 236 (4,704) (153) (12,547) (1,798) (19) 3,595 1,778 $ $ Supplemental Disclosures: Cash paid for income taxes Cash paid for interest, net of interest capitalized Non-cash capital expenditures 4,654 $ 1,241 274 3,220 $ 1,112 136 3,774 1,035 248 Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks. See accompanying notes to consolidated financial statements. 43 Table of Contents THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS January 31, 2021 February 2, 2020 $ in millions, except per share data Assets Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Operating lease right-of-use assets Goodwill Other assets Total assets 7,895 $ 2,992 16,627 963 28,477 24,705 5,962 7,126 4,311 70,581 $ 2,133 2,106 14,531 1,040 19,810 22,770 5,595 2,254 807 51,236 $ $ $ 974 7,787 1,494 605 Liabilities and Stockholders' Equity Current liabilities: Short-term debt Accounts payable Accrued salaries and related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Current operating lease liabilities Other accrued expenses Total current liabilities Long-term debt, excluding current installments Long-term operating lease liabilities Deferred income taxes Other long-term liabilities Total liabilities 11,606 2,463 774 2,823 193 1,416 828 3,063 23,166 35,822 5,356 1,131 1,807 67,282 2,116 55 1,839 828 2,677 18,375 28,670 5,066 706 1,535 54,352 89 Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,789 shares at January 31, 2021 and 1,786 shares at February 2, 2020; outstanding: 1,077 shares at January 31, 2021 and February 2, 2020 Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 712 shares at January 31, 2021 and 709 shares at February 2, 2020 Total stockholders' equity (deficit) Total liabilities and stockholders' equity 11,540 58,134 (671) 89 11,001 51,729 (739) (65,793) 3,299 70,581 $ (65,196) (3,116) 51,236 $ See accompanying notes to consolidated financial statements. Fiscal 2019 110,225 $ 72,653 37,572 Fiscal 2018 108,203 71,043 37,160 19,740 1,989 THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF EARNINGS Fiscal in millions, except per share data 2020 Net sales $ 132,110 $ Cost of sales 87,257 Gross profit 44,853 Operating expenses: Selling, general and administrative 24,447 Depreciation and amortization 2,128 Impairment loss Total operating expenses 26,575 Operating income 18,278 Interest and other income) expense: Interest and investment income (47) Interest expense 1,347 Other Interest and other, net 1,300 Earnings before provision for income taxes 16,978 Provision for income taxes 4,112 Net earnings $ 12,866 $ 19,513 1,870 247 21,630 15,530 21,729 15,843 (73) 1,201 1,128 14,715 3,473 11,242 $ (93) 1,051 16 974 14,556 3,435 11,121 Basic weighted average common shares Basic earnings per share 1,074 11.98 1,093 10.29 $ 1,137 9.78 $ $ Diluted weighted average common shares Diluted earnings per share 1,078 11.94 1,097 10.25 $ 1,143 9.73 $ $ Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks. See accompanying notes to consolidated financial statements. Table of Contents Fiscal 2018 11,121 THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Fiscal in millions 2020 2019 Net earnings $ 12,866 $ 11,242 $ Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 60 53 Cash flow hedges 8 8 Other 3 Total other comprehensive income (loss) 68 64 Comprehensive income $ 12,934 $ 11,306 $ (267) 53 8 (206) 10,915 Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks. See accompanying notes to consolidated financial statements. Fiscal 2018 THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Fiscal Fiscal in millions 2020 2019 Common Stock: Balance at beginning of year $ 89 $ 89 $ Shares issued under employee stock plans Balance at end of year 89 89 89 89 Paid-in Capital: Balance at beginning of year Shares issued under employee stock plans Stock-based compensation expense Balance at end of year 11,001 229 310 11,540 10,578 172 251 11,001 10,192 104 282 10,578 51,729 Retained Earnings: Balance at beginning of year Cumulative effect of accounting changes Net earnings Cash dividends Other Balance at end of year 12,866 (6,451) (10) 58,134 46,423 26 11,242 (5,958) (4) 51.729 39,935 75 11,121 (4,704) (4) 46,423 (739) (566) Accumulated Other Comprehensive Income (Loss): Balance at beginning of year Cumulative effect of accounting changes Foreign currency translation adjustments, net of tax Cash flow hedges, net of tax Other, net of tax Balance at end of year (772) (31) 53 60 (267) 53 8 8 3 8 (671) (739) (772) Treasury Stock: Balance at beginning of year Repurchases of common stock Balance at end of year Total stockholders' equity (deficit) (65,196) (597) (65,793) 3,299 $ (58,196) (7.000) (65, 196 (3,116) $ (48,196) (10,000) (58,196) (1,878) Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks. Table of Contents Fiscal 2019 Fiscal 2018 11,242 $ 11,121 2,296 251 THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal in millions 2020 Cash Flows from Operating Activities: Net earnings $ 12,866 $ Reconciliation of net earnings to net cash provided by operating activities: Depreciation and amortization 2,519 Stock-based compensation expense 310 Impairment loss Changes in receivables, net (465) Changes in merchandise inventories (1,657) Changes in other current assets 43 Changes in accounts payable and accrued expenses 5,118 Changes in deferred revenue 702 Changes in income taxes payable (149) Changes in deferred income taxes (569) Other operating activities 121 Net cash provided by operating activities 18,839 (170) (593) (135) 32 334 44 202 184 13,687 2,152 282 247 33 (1,244) (257) 870 80 (42) 26 (103) 13,165 (2,678) Cash Flows from Investing Activities: Capital expenditures Payments for businesses acquired, net Other investing activities Net cash used in investing activities (2,463) (7,780) 73 (10,170) (2,442) (21) 47 (2,416) 25 (2,653) Cash Flows from Financing Activities: Repayments of short-term debt, net Proceeds from long-term debt, net of discounts and premiums Repayments of long-term debt Repurchases of common stock Proceeds from sales of common stock Cash dividends Other financing activities Net cash used in financing activities Change in cash and cash equivalents Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (974) 7,933 (2,872) (791) 326 (6,451) (154) (2,983) 5,686 76 2,133 7,895 $ (365) 3,420 (1,070) (6,965) 280 (5,958) (140) (10,798) 236 119 1,778 2,133 $ (220) 3,466 (1,209) (9,963) 236 (4,704) (153) (12,547) (1,798) (19) 3,595 1,778 $ $ Supplemental Disclosures: Cash paid for income taxes Cash paid for interest, net of interest capitalized Non-cash capital expenditures 4,654 $ 1,241 274 3,220 $ 1,112 136 3,774 1,035 248 Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks. See accompanying notes to consolidated financial statements. 43