Home Depot, Inc (HD) has reported an 18.56 percent rise in profit for the quarter ended Jan. 29, 2017. The company has earned $1,744 million, or $1.44 a share in the quarter, compared with $1,471 million, or $1.17 a share for the same period last year.
Revenue during the quarter grew 5.85 percent to $22,207 million from $20,980 million in the previous year period. Gross margin for the quarter contracted 10 basis points over the previous year period to 34.01 percent. Total expenses were 86.82 percent of quarterly revenues, down from 87.85 percent for the same period last year. This has led to an improvement of 103 basis points in operating margin to 13.18 percent.
Operating income for the quarter was $2,927 million, compared with $2,549 million in the previous year period.
"Our focus on providing localized and innovative product selection, improving the interconnected customer experience, and driving productivity resulted in record sales and net earnings for 2016," said Craig Menear, chairman, chief executive officer and president. "Our associates responded to a healthy housing market and strong customer demand, and I’d like to thank them for their execution, hard work and continued dedication to our customers."
For fiscal year 2017, Home Depot, Inc expects revenue to grow at 4.60 percent. The company projects diluted earnings per share to be $7.13.
Operating cash flow improves marginally
Home Depot, Inc has generated cash of $9,783 million from operating activities during the year, up 4.37 percent or $410 million, when compared with the last year.
The company has spent $1,583 million cash to meet investing activities during the year as against cash outgo of $2,982 million in the last year. It has incurred net capital expenditure of $1,583 million on net basis during the year, up 8.42 percent or $123 million from year ago.
The company has spent $7,870 million cash to carry out financing activities during the year as against cash outgo of $5,787 million in the last year period.
Cash and cash equivalents stood at $2,538 million as on Jan. 29, 2017, up 14.53 percent or $322 million from $2,216 million on Jan. 31, 2016.
Debt moves up
Home Depot, Inc has witnessed an increase in total debt over the last one year. It stood at $23,601 million as on Jan. 29, 2017, up 11.24 percent or $2,385 million from $21,216 million on Jan. 31, 2016. Total debt was 54.93 percent of total assets as on Jan. 29, 2017, compared with 49.86 percent on Jan. 31, 2016. Debt to equity ratio was at 5.45 as on Jan. 29, 2017, up from 3.36 as on Jan. 31, 2016. Interest coverage ratio improved to 11.90 for the quarter from 10.53 for the same period last year.
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