Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Home Depot Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Feb 1, 2026	Feb 2, 2025	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021
Short-term debt	4,464)	316)	—)	—)	1,035)	—)
Accounts payable	11,491)	11,938)	10,037)	11,443)	13,462)	11,606)
Accrued salaries and related expenses	2,529)	2,315)	2,096)	1,991)	2,426)	2,463)
Sales taxes payable	508)	628)	449)	528)	848)	774)
Deferred revenue	2,575)	2,610)	2,762)	3,064)	3,596)	2,823)
Income taxes payable	114)	832)	28)	50)	158)	193)
Current installments of long-term debt	4,967)	4,582)	1,368)	1,231)	2,447)	1,416)
Current operating lease liabilities	1,418)	1,274)	1,050)	945)	830)	828)
Other accrued expenses	4,358)	4,166)	4,225)	3,858)	3,891)	3,063)
Current liabilities	32,424)	28,661)	22,015)	23,110)	28,693)	23,166)
Long-term debt, excluding current installments	46,341)	48,485)	42,743)	41,962)	36,604)	35,822)
Long-term operating lease liabilities	8,160)	7,633)	7,082)	6,226)	5,353)	5,356)
Deferred income taxes	2,845)	1,962)	863)	1,019)	909)	1,131)
Other long-term liabilities	2,512)	2,738)	2,783)	2,566)	2,013)	1,807)
Long-term liabilities	59,858)	60,818)	53,471)	51,773)	44,879)	44,116)
Total liabilities	92,282)	89,479)	75,486)	74,883)	73,572)	67,282)
Common stock, par value $0.05	90)	90)	90)	90)	90)	89)
Paid-in capital	14,809)	14,117)	13,147)	12,592)	12,132)	11,540)
Retained earnings	94,537)	89,533)	83,656)	76,896)	67,580)	58,134)
Accumulated other comprehensive loss	(652)	(1,129)	(477)	(718)	(704)	(671)
Treasury stock, at cost	(95,971)	(95,971)	(95,372)	(87,298)	(80,794)	(65,793)
Stockholders’ equity (deficit)	12,813)	6,640)	1,044)	1,562)	(1,696)	3,299)
Total liabilities and stockholders’ equity (deficit)	105,095)	96,119)	76,530)	76,445)	71,876)	70,581)

Based on: 10-K (reporting date: 2026-02-01), 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).

The liabilities of the company demonstrate a generally increasing trend over the observed period, with a notable acceleration between 2024 and 2026. Simultaneously, stockholders’ equity experienced significant volatility, transitioning from a deficit to a substantial positive value by the end of the period. A detailed examination of specific liability and equity components reveals nuanced patterns.

Current Liabilities: Current liabilities exhibited an initial increase from 2021 to 2022, peaking at US$28.693 billion. A subsequent decrease occurred in 2023, followed by another increase in 2025 and 2026, reaching US$32.424 billion. Accounts payable represent the largest component of current liabilities, fluctuating between US$10.037 billion and US$13.462 billion. Accrued salaries and related expenses generally decreased from 2021 to 2023, then increased in the later years. Income taxes payable show significant fluctuation, with a large increase in 2025, likely due to a timing difference in tax obligations.
Long-Term Liabilities: Long-term liabilities consistently increased throughout the period, rising from US$44.116 billion in 2021 to US$59.858 billion in 2026. Long-term debt, excluding current installments, is the primary driver of this increase. Long-term operating lease liabilities also contribute to the overall growth. Deferred income taxes show an increase in the later years, potentially indicating changes in tax planning or deferred tax asset/liability recognition.
Total Liabilities: Total liabilities increased from US$67.282 billion in 2021 to US$92.282 billion in 2026. The most substantial increase occurred between 2024 and 2026, suggesting a potential shift in financing strategy or increased investment in long-term assets. This growth is attributable to both current and long-term liability components.
Stockholders’ Equity: Stockholders’ equity experienced a dramatic turnaround. The company initially reported a deficit of US$-1.696 billion in 2022. However, equity steadily increased, culminating in a positive balance of US$12.813 billion in 2026. This improvement is largely driven by increases in retained earnings and paid-in capital. Treasury stock consistently represents a significant deduction from equity, remaining relatively stable in absolute value but decreasing as a percentage of total equity as other equity components grow. Accumulated other comprehensive loss also contributes to the reduction of equity, with a notable increase in 2025 before decreasing in 2026.
Total Liabilities and Stockholders’ Equity: The combined value of total liabilities and stockholders’ equity increased from US$70.581 billion in 2021 to US$105.095 billion in 2026. The growth rate accelerated in the later years, mirroring the trends observed in total liabilities and the recovery of stockholders’ equity. The shift from a deficit in stockholders’ equity to a substantial positive value significantly contributed to this overall increase.

In summary, the company’s financial position demonstrates increasing reliance on debt financing alongside a substantial improvement in stockholders’ equity. The significant growth in both total liabilities and equity suggests expansion or investment activities. The volatility in certain liability accounts, particularly income taxes payable, warrants further investigation.

AI Ask an analyst for more

Download chart

Home Depot Inc. (NYSE:HD)

Balance Sheet: Liabilities and Stockholders’ Equity