Forensic Analysis · Retail / Consumer Discretionary · as of Aug 7, 2026

Home Depot, Inc. (HD)

A forensic read on Home Depot, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

B · Sound & dependable

Forensic grade

Safe

Financial health

8.4

Distress distance

Clean

Earnings quality

Forensic signals

25.1

P / E (ttm)

110.5%

ROE

$354.6B

Market cap

2.67%

Dividend yield

3.2%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Home Depot, Inc. earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 8.4, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).

What the filings flag

+14.6%

FY2025→FY2026

Accruals ratio (% of NOA). Net operating assets grew +14.6% relative to their own average in FY2026 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by receivables up +14% against revenue +3% and inventory up +10% against +3% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran in line with operating cash by 4% of net operating assets, diverging from the balance-sheet accrual read.

82d

FY2025→FY2026

Inventory days. Days inventory outstanding moved from 76 to 82 FY2025→FY2026 (against cost of goods sold; inventory +10% vs +3% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.

Key fundamentals

Latest Revenue$164.68B

Revenue Growth YoY+3.2%

Revenue CAGR (3yr)+1.5%

Net Margin8.6%

Free Cash Flow$12.65B

Return on Equity110.5%

Debt / Equity3.97x

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Data from SEC EDGAR public filings · metrics as of Aug 7, 2026. Forensic signals flag probability, not certainty.