The Home Depot opened five new stores in the United States and two new stores in Mexico during fiscal year 2021.
This resulted in a total store count of 2,317 as of January 30, 2022, which includes 14 stores in the United States from a small acquisition completed during the second quarter of fiscal 2021.
At the end of that year, a total of 311 of its stores, or 13.4%, were located in Canada and Mexico.
The company reported net sales of $151.2 billion in fiscal 2021.
At the same time, net earnings were $16.4 billion, or $15.53 per diluted share.
On the other hand, the company’s inventory turnover ratio was 5.2 times at the end of fiscal year 2021, compared to 5.8 times at the end of fiscal year 2020.
Most notably, the decrease in its inventory turnover ratio was due to an increase in average inventory levels during fiscal year 2021 to support the demand environment.
The Home Depot
The company is a home improvement retailer that sells a wide variety of building materials, improvement products, lawn and garden products, décor items, facility maintenance, repair and operations products, and provides a number of services, in stores and online.
The Home Depot operates in the United States, Canada and Mexico.
Inventory cost includes the amount the company pays to acquire inventory, including freight and import costs, as well as operating costs associated with its supply and distribution network, and is net of certain supplier allocations.
Most of its merchandise inventories are stated at the lower of cost (first in, first out) or market, as determined by the retail inventory method, which is based on a number of factors, such as markups, markdowns, and losses. Inventory.
Since the retail value of inventory is regularly adjusted to reflect market conditions, inventory valued using the retail method approximates the lower of cost or market.
Certain subsidiaries, including retail operations in Canada and Mexico, and distribution centers, record merchandise inventories at cost or net realizable value, whichever is lower, as determined by a cost method.
These merchandise inventories represent approximately 43% of the total balance of merchandise inventories.
