HDMEDIUM SIGNALOPERATIONAL10-K

Home Depot expanded store count to 2,359 locations while SRS significantly grew through the GMS acquisition, increasing locations from 780 to over 1,250.

The operational expansion demonstrates HD's continued investment in physical footprint and distribution capabilities, particularly through SRS's major acquisition of specialty building products distributor GMS. However, the company appears to be navigating a more challenging operating environment with reduced cash generation and higher financing costs, suggesting margin pressure despite growth initiatives.

Comparing 2026-03-18 vs 2025-03-21View on EDGAR →
FINANCIAL ANALYSIS

Home Depot shows mixed financial signals with stockholders' equity nearly doubling to $12.8B while operating cash flow declined 17.6% to $16.3B, indicating strong balance sheet growth but weaker operational cash generation. The company increased inventory by 10.1% and accounts receivable by 14.2%, consistent with business expansion, though current liabilities rose 13.1% and interest expense jumped 20.2%. The overall picture suggests a company investing heavily in growth while facing headwinds in cash flow efficiency and higher borrowing costs.

FINANCIAL STATEMENT CHANGES
Stockholders Equity
Balance Sheet
+93%
$6.6B$12.8B

Equity base grew 93% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Interest Expense
P&L
+20.2%
$1.6B$1.9B

Interest costs rose 20.2% — monitor debt levels and coverage ratio in rising rate environment.

Operating Cash Flow
Cash Flow
-17.6%
$19.8B$16.3B

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Cash & Equivalents
Balance Sheet
-16.3%
$1.7B$1.4B

Cash decreased 16.3% — monitor burn rate and upcoming capital needs.

Accounts Receivable
Balance Sheet
+14.2%
$4.9B$5.6B

Receivables grew 14.2% — monitor days sales outstanding for collection efficiency.

Current Liabilities
Balance Sheet
+13.1%
$28.7B$32.4B

Current liabilities rose 13.1% — increased short-term obligations, watch current ratio.

Inventory
Balance Sheet
+10.1%
$23.5B$25.8B

Inventory built 10.1% — monitor whether demand supports this build or if write-downs may follow.

LANGUAGE CHANGES
NEW — 2026-03-18
PRIOR — 2025-03-21
ADDED
IRS Internal Revenue Service MD A Management s Discussion and Analysis of Financial Condition and Results of Operations MRO Maintenance, repair, and operations NOPAT Net operating profit after tax NYSE New York Stock Exchange PLCC Private label credit card Pro Professional customer Restoration Plans Home Depot FutureBuilder Restoration Plan and HD Supply Restoration Plan ROIC Return on invested capital SEC Securities and Exchange Commission Securities Act Securities Act of 1933, as amended SG A Selling, general, and administrative expenses SRS SRS Distribution Inc.
As of the end of fiscal 2025, we o perated 2,359 stor es located throughout the U.S.
We also maintain a network of distribution and fulfillment centers, as well as mobile applications and e-commerce websites in the U.S., Canada, and Mexico.
In fiscal 2025, SRS completed the acquisition of GMS, a leading distributor of specialty building products, including drywall, ceilings, steel framing and other complementary construction products.
At the end of fiscal 2025, SRS, which includes GMS, operated over 1,250 locations throughout the U.S.
and Canada, most of which have a distribution center, material handling and delivery equipment, and inventory.
Following the GMS acquisition, SRS is organized as four different lines of business: roofing and building products, interior and construction products, landscape, and pool.
OUR BUSINESS OUR STRATEGY The Home Depot is focused on leveraging its distinct competitive advantages our brand, excellent customer service, product authority in home improvement, knowledgeable associates and culture, scale, premier real estate portfolio, digital and interconnected experience, supply chain network, and our deep relationships with Pros to take advantage of the significant growth opportunities in the highly fragmented markets in which we operate.
In fiscal 2025, we strategically invested across our business to advance our growth strategy: Drive our core and culture by supporting our associates so that they can deliver the best customer experience in home improvement; Deliver a frictionless interconnected customer experience, regardless of whether our customers choose to engage and shop with us in-store or through our digital properties; and Win with Pros through our differentiated value proposition and ecosystem of capabilities.
We believe that this strategy will help us grow faster than the market and deliver value to our shareholders.
REMOVED
As of the end of fiscal 2024, we operated 2,347 stores located throughout the U.S.
We also maintain a network of distribution and fulfillment centers, as well as a number of e-commerce websites in the U.S., Canada and Mexico.
At the end of fiscal 2024, SRS operated over 780 branch locations throughout the U.S., each of which has a distribution center, material handling and delivery equipment, and inventory.
SRS is organized as three different lines of business: roofing and complementary building products, landscape, and pool.
OUR BUSINESS OUR STRATEGY The retail landscape has changed rapidly over the past several years, with a complex macroeconomic environment and customer expectations continually evolving.
In fiscal 2024, our strategy allowed us to continue to execute at a high level despite continued pressure on home improvement demand from high interest rates and macroeconomic uncertainty.
We continued our strategic investments aimed at creating an interconnected, frictionless shopping experience that enables our customers to seamlessly blend the digital and physical worlds, growing our market share with Pros through our ecosystem of capabilities, and building new stores.
Going forward, we will continue to leverage the momentum of these investments and invest in our business in support of the following goals: We intend to provide the best customer experience in home improvement and develop differentiated capabilities for our customers; We intend to extend our position as the low-cost provider in home improvement; and We intend to be the most efficient investor of capital in home improvement.
We believe that these goals will help us grow faster than the market and deliver value to our shareholders.
We are steadfast in our commitments to focus on our people, operate sustainably, and strengthen our communities, and we believe being informed by other stakeholder perspectives will drive shareholder value creation.
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