Home Depot Inc. (NYSE:HD)

The liabilities and stockholders’ equity of the company exhibit notable fluctuations over the observed period, spanning from May 2020 to February 2026. Total liabilities generally increased, with significant variations in specific liability accounts. Stockholders’ equity experienced a period of deficit, followed by substantial growth, particularly in the later quarters.

Short-Term Debt

Short-term debt remained largely absent until January 2022, when it reached US$1,035 million. It then fluctuated, peaking at US$2,527 million in May 2022 before declining and rising again to US$3,200 million by February 2026. This suggests a strategic use of short-term financing, potentially linked to seasonal needs or specific investment opportunities.

Accounts Payable

Accounts payable demonstrated a consistent upward trend from US$10,056 million in May 2020 to a peak of US$15,367 million in May 2022. Subsequently, it decreased to US$11,478 million in October 2022, then increased again, reaching US$14,696 million in May 2025, before settling at US$13,237 million in November 2025. This pattern likely reflects changes in purchasing volume and supplier payment terms.

Accrued Expenses

Accrued salaries and related expenses, along with other accrued expenses, remained relatively stable throughout the period, with fluctuations generally within a range of US$1.9 billion to US$2.5 billion for salaries and US$3.2 billion to US$4.6 billion for other accrued expenses. This indicates consistent operational costs.

Current and Long-Term Debt

Current installments of long-term debt decreased from US$4,200 million in May 2020 to US$1,368 million in January 2024, then increased significantly to US$3,176 million by October 2024. Long-term debt, excluding current installments, remained relatively stable between US$31.6 billion and US$42.7 billion, with a notable increase to US$51.869 billion in August 2024. The combined effect suggests a restructuring of debt obligations over time.

Lease Liabilities

Both current and long-term operating lease liabilities exhibited a consistent upward trend throughout the period. Current liabilities increased from US$853 million to US$1,418 million, while long-term liabilities rose from US$5,075 million to US$8,160 million. This indicates an increasing reliance on lease financing.

Stockholders’ Equity

Stockholders’ equity began with a deficit of US$3,490 million in May 2020. It transitioned to a positive value in February 2026, experiencing substantial growth to US$12,813 million by February 2026. This turnaround is primarily driven by increases in retained earnings and paid-in capital, offset by accumulated other comprehensive loss and treasury stock. The significant increase in paid-in capital, particularly after May 2024, suggests potential equity offerings or share repurchases. Treasury stock consistently represented a substantial outflow, remaining negative throughout the period.

Total Liabilities and Equity

Total liabilities and stockholders’ equity increased from US$58,737 million in May 2020 to US$105,095 million in February 2026. The most significant increase occurred between May 2024 and February 2026, driven by the growth in both liabilities and, more substantially, stockholders’ equity.

Overall, the company’s financial position demonstrates a shift from a period of deficit to one of increasing equity, supported by growing liabilities, particularly long-term debt and lease obligations. The fluctuations in short-term debt and accounts payable suggest active management of working capital. The substantial increase in stockholders’ equity in the later periods indicates improved financial performance and strategic capital management.