Microsoft Excel LibreOffice Calc

Home Depot Inc. (HD)


Analysis of Solvency Ratios

Low level of difficulty


Solvency Ratios (Summary)

Home Depot Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Feb 1, 2015 Feb 2, 2014
Debt Ratios
Debt to equity 18.59 5.45 3.37 1.84 1.18
Debt to capital 1.07 0.95 0.84 0.77 0.65 0.54
Debt to assets 0.66 0.61 0.55 0.50 0.43 0.36
Financial leverage 30.63 9.92 6.74 4.29 3.24
Coverage Ratios
Interest coverage 14.85 13.96 13.85 12.99 13.02 12.91
Fixed charge coverage 7.80 7.49 7.39 6.99 6.71 6.24

Based on: 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26), 10-K (filing date: 2014-03-27).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Home Depot Inc.’s financial leverage ratio increased from 2017 to 2018 but then declined significantly from 2018 to 2019.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Home Depot Inc.’s interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Home Depot Inc.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Equity

Home Depot Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Feb 1, 2015 Feb 2, 2014
Selected Financial Data (US$ in millions)
Short-term debt 1,339  1,559  710  350  290  — 
Current installments of long-term debt 1,056  1,202  542  77  38  33 
Long-term debt, excluding current installments 26,807  24,267  22,349  20,888  16,869  14,691 
Total debt 29,202  27,028  23,601  21,315  17,197  14,724 
 
Stockholders’ equity (deficit) (1,878) 1,454  4,333  6,316  9,322  12,522 
Solvency Ratio
Debt to equity1 18.59 5.45 3.37 1.84 1.18
Benchmarks
Debt to Equity, Competitors2
Amazon.com Inc. 1.13 1.59 1.06 1.31 1.50
Costco Wholesale Corp. 0.45 0.51 0.62 0.43 0.58 0.41
eBay Inc. 1.47 1.24 0.85 1.03 0.38
Lowe’s Cos. Inc. 4.45 2.89 2.44 1.65 1.14 0.89
Netflix Inc. 1.98 1.81 1.26 1.07 0.48
Target Corp. 1.00 0.99 1.16 0.98 0.91 0.85
TJX Cos. Inc. 0.44 0.43 0.49 0.38 0.38 0.30
Walmart Inc. 0.80 0.60 0.59 0.62 0.62 0.74
Debt to Equity, Sector
General Retailers 1.06 1.09 0.87 0.83 0.76
Debt to Equity, Industry
Consumer Services 1.26 1.07 0.97 0.92 0.74

Based on: 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26), 10-K (filing date: 2014-03-27).

1 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 29,202 ÷ -1,878 =

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity.

Debt to Capital

Home Depot Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Feb 1, 2015 Feb 2, 2014
Selected Financial Data (US$ in millions)
Short-term debt 1,339  1,559  710  350  290  — 
Current installments of long-term debt 1,056  1,202  542  77  38  33 
Long-term debt, excluding current installments 26,807  24,267  22,349  20,888  16,869  14,691 
Total debt 29,202  27,028  23,601  21,315  17,197  14,724 
Stockholders’ equity (deficit) (1,878) 1,454  4,333  6,316  9,322  12,522 
Total capital 27,324  28,482  27,934  27,631  26,519  27,246 
Solvency Ratio
Debt to capital1 1.07 0.95 0.84 0.77 0.65 0.54
Benchmarks
Debt to Capital, Competitors2
Amazon.com Inc. 0.53 0.61 0.51 0.57 0.60
Costco Wholesale Corp. 0.31 0.34 0.38 0.30 0.37 0.29
eBay Inc. 0.60 0.55 0.46 0.51 0.28
Lowe’s Cos. Inc. 0.82 0.74 0.71 0.62 0.53 0.47
Netflix Inc. 0.66 0.64 0.56 0.52 0.33
Target Corp. 0.50 0.50 0.54 0.50 0.48 0.46
TJX Cos. Inc. 0.31 0.30 0.33 0.27 0.28 0.23
Walmart Inc. 0.44 0.37 0.37 0.38 0.38 0.43
Debt to Capital, Sector
General Retailers 0.51 0.52 0.47 0.45 0.43
Debt to Capital, Industry
Consumer Services 0.56 0.52 0.49 0.48 0.42

Based on: 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26), 10-K (filing date: 2014-03-27).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 29,202 ÷ 27,324 = 1.07

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.

Debt to Assets

Home Depot Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Feb 1, 2015 Feb 2, 2014
Selected Financial Data (US$ in millions)
Short-term debt 1,339  1,559  710  350  290  — 
Current installments of long-term debt 1,056  1,202  542  77  38  33 
Long-term debt, excluding current installments 26,807  24,267  22,349  20,888  16,869  14,691 
Total debt 29,202  27,028  23,601  21,315  17,197  14,724 
 
Total assets 44,003  44,529  42,966  42,549  39,946  40,518 
Solvency Ratio
Debt to assets1 0.66 0.61 0.55 0.50 0.43 0.36
Benchmarks
Debt to Assets, Competitors2
Amazon.com Inc. 0.30 0.34 0.24 0.27 0.30
Costco Wholesale Corp. 0.15 0.16 0.18 0.16 0.18 0.15
eBay Inc. 0.40 0.39 0.38 0.38 0.17
Lowe’s Cos. Inc. 0.47 0.48 0.46 0.40 0.36 0.32
Netflix Inc. 0.40 0.34 0.25 0.23 0.13
Target Corp. 0.27 0.30 0.34 0.32 0.31 0.31
TJX Cos. Inc. 0.16 0.16 0.17 0.14 0.15 0.12
Walmart Inc. 0.26 0.23 0.23 0.25 0.25 0.28
Debt to Assets, Sector
General Retailers 0.30 0.31 0.28 0.28 0.27
Debt to Assets, Industry
Consumer Services 0.36 0.33 0.31 0.31 0.27

Based on: 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26), 10-K (filing date: 2014-03-27).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 29,202 ÷ 44,003 = 0.66

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets.

Financial Leverage

Home Depot Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Feb 1, 2015 Feb 2, 2014
Selected Financial Data (US$ in millions)
Total assets 44,003  44,529  42,966  42,549  39,946  40,518 
Stockholders’ equity (deficit) (1,878) 1,454  4,333  6,316  9,322  12,522 
Solvency Ratio
Financial leverage1 30.63 9.92 6.74 4.29 3.24
Benchmarks
Financial Leverage, Competitors2
Amazon.com Inc. 3.73 4.74 4.32 4.89 5.07
Costco Wholesale Corp. 2.98 3.19 3.37 2.75 3.15 2.68
eBay Inc. 3.63 3.22 2.26 2.70 2.27
Lowe’s Cos. Inc. 9.47 6.01 5.35 4.08 3.19 2.76
Netflix Inc. 4.96 5.31 5.07 4.59 3.80
Target Corp. 3.65 3.33 3.42 3.11 2.96 2.74
TJX Cos. Inc. 2.84 2.73 2.86 2.67 2.61 2.41
Walmart Inc. 3.02 2.63 2.56 2.48 2.50 2.69
Financial Leverage, Sector
General Retailers 3.47 3.50 3.06 3.00 2.85
Financial Leverage, Industry
Consumer Services 3.52 3.21 3.09 3.01 2.74

Based on: 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26), 10-K (filing date: 2014-03-27).

1 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 44,003 ÷ -1,878 =

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Home Depot Inc.’s financial leverage ratio increased from 2017 to 2018 but then declined significantly from 2018 to 2019.

Interest Coverage

Home Depot Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Feb 1, 2015 Feb 2, 2014
Selected Financial Data (US$ in millions)
Net earnings 11,121  8,630  7,957  7,009  6,345  5,385 
Add: Income tax expense 3,435  5,068  4,534  4,012  3,631  3,082 
Add: Interest expense 1,051  1,057  972  919  830  711 
Earnings before interest and tax (EBIT) 15,607  14,755  13,463  11,940  10,806  9,178 
Solvency Ratio
Interest coverage1 14.85 13.96 13.85 12.99 13.02 12.91
Benchmarks
Interest Coverage, Competitors2
Amazon.com Inc. 8.95 5.48 8.84 4.37 0.65
Costco Wholesale Corp. 32.77 28.94 31.14 28.21 30.06 29.29
eBay Inc. 9.34 8.79 17.23 17.71 29.71
Lowe’s Cos. Inc. 6.29 9.60 9.04 9.06 9.30 8.75
Netflix Inc. 3.92 3.04 2.74 2.07 7.96
Target Corp. 8.97 6.47 4.95 9.11 5.14 3.76
TJX Cos. Inc. 65.36 60.98 61.37 61.70 65.10 73.02
Walmart Inc. 5.88 7.49 9.66 9.49 11.08 11.56
Interest Coverage, Sector
General Retailers 9.68 9.60 11.04 10.63 10.68
Interest Coverage, Industry
Consumer Services 7.28 8.41 9.20 10.09 10.04

Based on: 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26), 10-K (filing date: 2014-03-27).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 15,607 ÷ 1,051 = 14.85

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Home Depot Inc.’s interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Fixed Charge Coverage

Home Depot Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Feb 1, 2015 Feb 2, 2014
Selected Financial Data (US$ in millions)
Net earnings 11,121  8,630  7,957  7,009  6,345  5,385 
Add: Income tax expense 3,435  5,068  4,534  4,012  3,631  3,082 
Add: Interest expense 1,051  1,057  972  919  830  711 
Earnings before interest and tax (EBIT) 15,607  14,755  13,463  11,940  10,806  9,178 
Add: Rent expense 1,091  1,053  984  922  918  905 
Earnings before fixed charges and tax 16,698  15,808  14,447  12,862  11,724  10,083 
 
Interest expense 1,051  1,057  972  919  830  711 
Rent expense 1,091  1,053  984  922  918  905 
Fixed charges 2,142  2,110  1,956  1,841  1,748  1,616 
Solvency Ratio
Fixed charge coverage1 7.80 7.49 7.39 6.99 6.71 6.24
Benchmarks
Fixed Charge Coverage, Competitors2
Amazon.com Inc. 3.34 2.25 3.01 1.99 0.94
Costco Wholesale Corp. 12.40 11.48 11.30 10.45 10.59 10.32
eBay Inc. 7.12 6.73 12.82 11.79 13.52
Lowe’s Cos. Inc. 3.70 5.34 5.35 5.33 5.45 5.10
Netflix Inc. 3.33 2.55 2.28 1.85 5.55
Target Corp. 6.16 5.10 4.29 7.12 4.39 3.29
TJX Cos. Inc. 3.39 3.35 3.51 3.59 3.61 3.61
Walmart Inc. 3.14 3.89 5.13 5.29 5.71 5.80
Fixed Charge Coverage, Sector
General Retailers 4.54 4.78 5.42 5.24 5.14
Fixed Charge Coverage, Industry
Consumer Services 3.98 4.37 4.61 4.77 4.56

Based on: 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26), 10-K (filing date: 2014-03-27).

1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 16,698 ÷ 2,142 = 7.80

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Home Depot Inc.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.