The Home Depot, Inc. (HD) Return on Invested Capital (ROIC): 19.03%
Is The Home Depot, Inc.’s return on invested capital (ROIC) high or low?
The Home Depot, Inc.'s return on invested capital (ROIC) of 19.03% is 32% below its 5-year average of 27.98%, near the low end of its 5-year range (19.03%–36.67%).
The return on invested capital (ROIC) for The Home Depot, Inc. (HD) is 19.03% as of Wednesday, June 10, 2026. It is below its 12-month average by 7.93% (20.67%).
HD Return on Invested Capital (ROIC) Chart
HD Average Return on Invested Capital (ROIC) Chart
HD Current vs Average Return on Invested Capital (ROIC) Chart
HD Return on Invested Capital (ROIC) Metrics
RETURN ON INVESTED CAPITAL (ROIC)
19.03%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
20.67%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
23.43%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
27.98%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
29.91%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
26.41%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
22.73%
CURRENT VS TTM AVG
-7.93%
CURRENT VS 3Y AVG
-18.78%
CURRENT VS 5Y AVG
-32.00%
CURRENT VS 10Y AVG
-36.38%
CURRENT VS 15Y AVG
-27.94%
CURRENT VS 20Y AVG
-16.26%
HD Competitors' Return on Invested Capital (ROIC)
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| The Home Depot, Inc. (HD) | $318.93B | 19.03% | 20.67% | 23.43% | 27.98% |
| Alibaba Group Holding Limited (BABA) | $271.17B | 3.17% | 5.52% | 5.79% | 5.34% |
| McDonald's Corporation (MCD) | $201.57B | 17.44% | 17.68% | 17.24% | 16.22% |
| The TJX Companies, Inc. (TJX) | $184.59B | 21.50% | 21.31% | 20.40% | 17.05% |
| Booking Holdings Inc. (BKNG) | $124.69B | 50.82% | 47.48% | 38.26% | 27.16% |
| Lowe's Companies, Inc. (LOW) | $120.69B | 20.42% | 23.48% | 27.58% | 28.23% |
| Starbucks Corporation (SBUX) | $112.74B | 8.48% | 12.44% | 15.12% | 13.40% |
| Marriott International, Inc. (MAR) | $101.90B | 15.59% | 15.33% | 16.05% | 12.10% |
| MercadoLibre, Inc. (MELI) | $81.30B | 11.78% | 14.75% | 13.57% | 9.51% |
| Hilton Worldwide Holdings Inc. (HLT) | $76.74B | 11.29% | 13.84% | 13.21% | 9.40% |
Capital Efficiency
ROIC
19.0%
ROE
101.0%
The Home Depot, Inc. Return on Invested Capital (ROIC) Formula & Definition
ROIC = NOPAT / Invested Capital
Return on invested capital measures the after-tax return a company earns on all capital (debt and equity) invested in the business.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
The Home Depot, Inc. Return on Invested Capital (ROIC) FAQ
- What is the return on invested capital (ROIC) for The Home Depot, Inc. (HD)?
- The return on invested capital (ROIC) for HD stock is 19.03%.
- Is The Home Depot, Inc.'s return on invested capital (ROIC) high or low?
- The Home Depot, Inc.'s return on invested capital (ROIC) of 19.03% is 32% below its 5-year average of 27.98%, near the low end of its 5-year range (19.03%–36.67%).
- What is the TTM average return on invested capital (ROIC) for The Home Depot, Inc. (HD)?
- The TTM average return on invested capital (ROIC) for HD stock is 20.67%.
- What is the 3Y average return on invested capital (ROIC) for The Home Depot, Inc. (HD)?
- The 3Y average return on invested capital (ROIC) for HD stock is 23.43%.
- What is the 5Y average return on invested capital (ROIC) for The Home Depot, Inc. (HD)?
- The 5Y average return on invested capital (ROIC) for HD stock is 27.98%.
- What is the 10Y average return on invested capital (ROIC) for The Home Depot, Inc. (HD)?
- The 10Y average return on invested capital (ROIC) for HD stock is 29.91%.
- What is the 15Y average return on invested capital (ROIC) for The Home Depot, Inc. (HD)?
- The 15Y average return on invested capital (ROIC) for HD stock is 26.41%.
- What is the 20Y average return on invested capital (ROIC) for The Home Depot, Inc. (HD)?
- The 20Y average return on invested capital (ROIC) for HD stock is 22.73%.
The Home Depot, Inc. Return on Invested Capital (ROIC) History
| DATE | RETURN ON INVESTED CAPITAL (ROIC) |
|---|---|
| 2026-02-01 | 19.03% |
| 2025-02-02 | 22.31% |
| 2024-01-28 | 28.95% |
| 2023-01-29 | 32.96% |
| 2022-01-30 | 36.67% |
| 2021-01-31 | 27.89% |
| 2020-01-31 | 33.16% |
| 2019-01-31 | 39.97% |
| 2018-01-31 | 29.74% |
| 2017-01-31 | 28.43% |
| 2016-01-31 | 25.06% |
| 2015-01-31 | 22.96% |
| 2014-01-31 | 19.56% |
| 2013-01-31 | 15.76% |
| 2012-01-31 | 13.67% |
| 2011-01-31 | 11.91% |
| 2010-01-31 | 10.02% |
| 2009-01-31 | 8.83% |
| 2008-01-31 | 13.68% |
| 2007-01-31 | 13.96% |
| 2006-01-31 | 17.78% |
| 2005-01-31 | 17.65% |
| 2004-01-31 | 16.96% |
| 2003-01-31 | 16.55% |
| 2002-01-31 | 15.22% |
| 2001-01-31 | 15.09% |
| 2000-01-31 | 17.20% |
| 1999-01-31 | 15.23% |
| 1998-01-31 | 13.92% |
| 1997-01-31 | 12.43% |
Related Metrics
About The Home Depot, Inc.
The Home Depot, Inc. operates as a prominent retailer specializing in home renovation and improvement. Through its expansive network of "The Home Depot" stores, it furnishes consumers with an extensive array of goods, including building materials, home enhancement products, lawn and garden supplies, decorative items, and facilities maintenance, repair, and operational (MRO) supplies. In addition to selling products, the company extends professional installation services for key home features like flooring, cabinetry (including makeovers), countertops, furnaces and central air conditioning systems, and window replacements. Customers can also access tool and equipment rental options. Its diverse clientele includes both individual homeowners and a broad spectrum of professional clients, such as renovators, general contractors, maintenance personnel, handymen, property managers, building service contractors, and specialized tradespeople like electricians, plumbers, and painters. The firm also distributes its merchandise through several online platforms, notably homedepot.com, along with specialized sites such as blinds.com for bespoke window coverings and thecompanystore.com for home textiles and decorative goods. By the end of 2021, the corporation operated a total of 2,317 outlets across the United States. Incorporated in 1978, The Home Depot, Inc. maintains its corporate headquarters in Atlanta, Georgia.
- Sector
- Consumer Cyclical
- Industry
- Home Improvement
- CEO
- Edward Decker