HD · 10-Q · 2026Q2 · Full report
ROIC / Return on Invested Capital
HOME DEPOT, INC. · 2026-05-27 · Importance 48 · Surprise 40
Trailing twelve-month ROIC declined to 25.4% at the end of Q1 fiscal 2026 from 31.3% a year earlier, a relative decline of roughly 19%. NOPAT for the trailing twelve months was $15.735 billion versus $16.429 billion in the prior comparable period. Management attributes the ROIC decline primarily to higher average equity driven by the ongoing pause in share repurchases and higher average long-term debt largely due to financing the SRS acquisition. Average debt and equity increased to $62.032 billion from $52.413 billion, reducing the ROIC denominator efficiency.