Analysis of Debt
Total Debt (Carrying Amount)
Home Depot Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
The analysis of the debt data over the reported periods reveals several noteworthy trends regarding the company's debt structure and its evolution.
- Short-term debt
- The reported short-term debt shows fluctuations, starting at $974 million in 2020, increasing slightly to $1,035 million in 2022, and then dropping significantly to $316 million by 2025. The data for 2021, 2023, and 2024 are absent, making it difficult to observe a continuous trend, but the notable decline in 2025 suggests a reduction in short-term borrowing or improved liquidity management in the most recent year.
- Current installments of long-term debt
- This category exhibits irregular but substantial variations. The amount decreased from $1,839 million in 2020 to $1,416 million in 2021, then rose sharply to $2,447 million in 2022. Subsequently, it declined to $1,231 million in 2023 but increased slightly to $1,368 million in 2024 before surging to $4,582 million in 2025. The spike in the final year may indicate a significant portion of long-term debt maturing or being reclassified to current liabilities, signaling increased near-term repayment obligations.
- Long-term debt, excluding current installments
- There is a clear upward trend in long-term debt over the entire period. Starting at $28,670 million in 2020, the balance climbed steadily each year, reaching $35,822 million in 2021, $36,604 million in 2022, $41,962 million in 2023, $42,743 million in 2024, and $48,485 million in 2025. This consistent increase suggests ongoing borrowing or refinancing activities extending the debt maturity profile beyond the short term.
- Total debt (carrying amount)
- The total debt figures mirror the overall increase observed in long-term debt. Beginning at $31,483 million in 2020, the total debt rose each year, reaching $37,238 million in 2021, $40,086 million in 2022, $43,193 million in 2023, $44,111 million in 2024, and peaking at $53,383 million in 2025. This steady growth highlights an expanding debt load over the period examined, which may warrant monitoring for implications on financial risk and leverage.
In summary, the company has experienced a significant increase in total and long-term debt over the five-year span, with notable volatility in current installments of long-term debt and a marked reduction in short-term debt in the latest period reported. These patterns reflect evolving debt management strategies, including borrowing capacity extension and potential shifts in repayment schedules. The rise in current installments in 2025 might require attention due to increased near-term payment commitments.
Total Debt (Fair Value)
| Feb 2, 2025 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Commercial paper | 316) |
| Senior notes | 45,499) |
| Finance lease obligations | 3,021) |
| Other long-term debt | 315) |
| Total debt (fair value) | 49,151) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.92 |
Based on: 10-K (reporting date: 2025-02-02).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 3.90%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.40% | 316) | 14) | |
| 2.70% | 500) | 14) | |
| 5.13% | 500) | 26) | |
| 3.35% | 999) | 33) | |
| 4.00% | 749) | 30) | |
| 5.10% | 898) | 46) | |
| 3.00% | 1,297) | 39) | |
| 5.15% | 1,496) | 77) | |
| 2.13% | 997) | 21) | |
| 4.95% | 747) | 37) | |
| 2.88% | 747) | 21) | |
| 2.50% | 747) | 19) | |
| 4.88% | 995) | 49) | |
| 2.80% | 984) | 28) | |
| 0.90% | 497) | 4) | |
| 1.50% | 995) | 15) | |
| 3.90% | 972) | 38) | |
| 4.90% | 744) | 36) | |
| 2.95% | 1,672) | 49) | |
| 4.75% | 1,239) | 59) | |
| 2.70% | 1,359) | 37) | |
| 1.38% | 1,173) | 16) | |
| 4.85% | 989) | 48) | |
| 1.88% | 939) | 18) | |
| 3.25% | 1,240) | 40) | |
| 4.50% | 1,244) | 56) | |
| 4.95% | 1,725) | 85) | |
| 5.88% | 2,879) | 169) | |
| 3.30% | 1,071) | 35) | |
| 5.40% | 496) | 27) | |
| 5.95% | 991) | 59) | |
| 4.20% | 937) | 39) | |
| 4.88% | 982) | 48) | |
| 4.40% | 981) | 43) | |
| 4.25% | 1,587) | 67) | |
| 3.90% | 1,145) | 45) | |
| 4.50% | 1,466) | 66) | |
| 3.13% | 1,176) | 37) | |
| 3.35% | 1,473) | 49) | |
| 2.38% | 1,152) | 27) | |
| 2.75% | 984) | 27) | |
| 3.63% | 1,459) | 53) | |
| 4.95% | 980) | 49) | |
| 5.30% | 1,466) | 78) | |
| 3.50% | 974) | 34) | |
| 5.40% | 489) | 26) | |
| 3.70% | 3,021) | 112) | |
| Total | 52,469) | 2,045) | |
| 3.90% | |||
Based on: 10-K (reporting date: 2025-02-02).
1 US$ in millions
2 Weighted-average interest rate = 100 × 2,045 ÷ 52,469 = 3.90%