Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Home Depot Inc., solvency ratios

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Debt Ratios
Debt to equity 42.25 27.65 11.29
Debt to equity (including operating lease liability) 50.04 32.24 13.16
Debt to capital 0.98 0.97 1.04 0.92 1.11 1.07
Debt to capital (including operating lease liability) 0.98 0.97 1.04 0.93 1.09 1.07
Debt to assets 0.58 0.57 0.56 0.53 0.61 0.66
Debt to assets (including operating lease liability) 0.68 0.66 0.64 0.62 0.73 0.66
Financial leverage 73.30 48.94 21.39
Coverage Ratios
Interest coverage 11.25 14.90 17.14 13.60 13.25 14.85
Fixed charge coverage 7.03 9.07 9.94 8.97 8.26 7.80

Based on: 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), 10-K (reporting date: 2019-02-03).

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Home Depot Inc. debt to capital ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Home Depot Inc. debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Home Depot Inc. debt to assets ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Home Depot Inc. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 and from 2023 to 2024.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Home Depot Inc. interest coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Home Depot Inc. fixed charge coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Debt to Equity

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

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Selected Financial Data (US$ in millions)
Short-term debt 1,035 974 1,339
Current installments of long-term debt 1,368 1,231 2,447 1,416 1,839 1,056
Long-term debt, excluding current installments 42,743 41,962 36,604 35,822 28,670 26,807
Total debt 44,111 43,193 40,086 37,238 31,483 29,202
 
Stockholders’ equity (deficit) 1,044 1,562 (1,696) 3,299 (3,116) (1,878)
Solvency Ratio
Debt to equity1 42.25 27.65 11.29
Benchmarks
Debt to Equity, Competitors2
Amazon.com Inc. 0.39 0.59 0.54 0.66 0.83
Lowe’s Cos. Inc. 15.16 9.79 4.45
TJX Cos. Inc. 0.39 0.53 0.56 1.04 0.38 0.44
Debt to Equity, Sector
Consumer Discretionary Distribution & Retail 0.82 1.06 0.93 1.17 1.44
Debt to Equity, Industry
Consumer Discretionary 1.37 1.54 1.52 2.37 2.78

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 44,111 ÷ 1,044 = 42.25

2 Click competitor name to see calculations.


Debt to Equity (including Operating Lease Liability)

Home Depot Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Selected Financial Data (US$ in millions)
Short-term debt 1,035 974 1,339
Current installments of long-term debt 1,368 1,231 2,447 1,416 1,839 1,056
Long-term debt, excluding current installments 42,743 41,962 36,604 35,822 28,670 26,807
Total debt 44,111 43,193 40,086 37,238 31,483 29,202
Current operating lease liabilities 1,050 945 830 828 828
Long-term operating lease liabilities 7,082 6,226 5,353 5,356 5,066
Total debt (including operating lease liability) 52,243 50,364 46,269 43,422 37,377 29,202
 
Stockholders’ equity (deficit) 1,044 1,562 (1,696) 3,299 (3,116) (1,878)
Solvency Ratio
Debt to equity (including operating lease liability)1 50.04 32.24 13.16
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Amazon.com Inc. 0.77 1.06 0.96 1.08 1.25
Lowe’s Cos. Inc. 18.24 12.04 4.45
TJX Cos. Inc. 1.72 2.00 2.08 2.66 1.93 0.44
Debt to Equity (including Operating Lease Liability), Sector
Consumer Discretionary Distribution & Retail 1.31 1.67 1.46 1.76 1.82
Debt to Equity (including Operating Lease Liability), Industry
Consumer Discretionary 1.72 1.94 1.90 2.84 3.08

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= 52,243 ÷ 1,044 = 50.04

2 Click competitor name to see calculations.


Debt to Capital

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

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Selected Financial Data (US$ in millions)
Short-term debt 1,035 974 1,339
Current installments of long-term debt 1,368 1,231 2,447 1,416 1,839 1,056
Long-term debt, excluding current installments 42,743 41,962 36,604 35,822 28,670 26,807
Total debt 44,111 43,193 40,086 37,238 31,483 29,202
Stockholders’ equity (deficit) 1,044 1,562 (1,696) 3,299 (3,116) (1,878)
Total capital 45,155 44,755 38,390 40,537 28,367 27,324
Solvency Ratio
Debt to capital1 0.98 0.97 1.04 0.92 1.11 1.07
Benchmarks
Debt to Capital, Competitors2
Amazon.com Inc. 0.28 0.37 0.35 0.40 0.45
Lowe’s Cos. Inc. 1.72 1.72 1.24 0.94 0.91 0.82
TJX Cos. Inc. 0.28 0.35 0.36 0.51 0.27 0.31
Debt to Capital, Sector
Consumer Discretionary Distribution & Retail 0.45 0.51 0.48 0.54 0.59
Debt to Capital, Industry
Consumer Discretionary 0.58 0.61 0.60 0.70 0.74

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 44,111 ÷ 45,155 = 0.98

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. Home Depot Inc. debt to capital ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Debt to Capital (including Operating Lease Liability)

Home Depot Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Selected Financial Data (US$ in millions)
Short-term debt 1,035 974 1,339
Current installments of long-term debt 1,368 1,231 2,447 1,416 1,839 1,056
Long-term debt, excluding current installments 42,743 41,962 36,604 35,822 28,670 26,807
Total debt 44,111 43,193 40,086 37,238 31,483 29,202
Current operating lease liabilities 1,050 945 830 828 828
Long-term operating lease liabilities 7,082 6,226 5,353 5,356 5,066
Total debt (including operating lease liability) 52,243 50,364 46,269 43,422 37,377 29,202
Stockholders’ equity (deficit) 1,044 1,562 (1,696) 3,299 (3,116) (1,878)
Total capital (including operating lease liability) 53,287 51,926 44,573 46,721 34,261 27,324
Solvency Ratio
Debt to capital (including operating lease liability)1 0.98 0.97 1.04 0.93 1.09 1.07
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Amazon.com Inc. 0.43 0.51 0.49 0.52 0.56
Lowe’s Cos. Inc. 1.60 1.60 1.20 0.95 0.92 0.82
TJX Cos. Inc. 0.63 0.67 0.68 0.73 0.66 0.31
Debt to Capital (including Operating Lease Liability), Sector
Consumer Discretionary Distribution & Retail 0.57 0.63 0.59 0.64 0.65
Debt to Capital (including Operating Lease Liability), Industry
Consumer Discretionary 0.63 0.66 0.65 0.74 0.76

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 52,243 ÷ 53,287 = 0.98

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Home Depot Inc. debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Debt to Assets

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

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Selected Financial Data (US$ in millions)
Short-term debt 1,035 974 1,339
Current installments of long-term debt 1,368 1,231 2,447 1,416 1,839 1,056
Long-term debt, excluding current installments 42,743 41,962 36,604 35,822 28,670 26,807
Total debt 44,111 43,193 40,086 37,238 31,483 29,202
 
Total assets 76,530 76,445 71,876 70,581 51,236 44,003
Solvency Ratio
Debt to assets1 0.58 0.57 0.56 0.53 0.61 0.66
Benchmarks
Debt to Assets, Competitors2
Amazon.com Inc. 0.15 0.19 0.18 0.19 0.23
Lowe’s Cos. Inc. 0.86 0.78 0.55 0.47 0.49 0.47
TJX Cos. Inc. 0.10 0.12 0.12 0.20 0.09 0.16
Debt to Assets, Sector
Consumer Discretionary Distribution & Retail 0.24 0.25 0.24 0.26 0.31
Debt to Assets, Industry
Consumer Discretionary 0.34 0.35 0.36 0.41 0.45

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 44,111 ÷ 76,530 = 0.58

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. Home Depot Inc. debt to assets ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Debt to Assets (including Operating Lease Liability)

Home Depot Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Selected Financial Data (US$ in millions)
Short-term debt 1,035 974 1,339
Current installments of long-term debt 1,368 1,231 2,447 1,416 1,839 1,056
Long-term debt, excluding current installments 42,743 41,962 36,604 35,822 28,670 26,807
Total debt 44,111 43,193 40,086 37,238 31,483 29,202
Current operating lease liabilities 1,050 945 830 828 828
Long-term operating lease liabilities 7,082 6,226 5,353 5,356 5,066
Total debt (including operating lease liability) 52,243 50,364 46,269 43,422 37,377 29,202
 
Total assets 76,530 76,445 71,876 70,581 51,236 44,003
Solvency Ratio
Debt to assets (including operating lease liability)1 0.68 0.66 0.64 0.62 0.73 0.66
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Amazon.com Inc. 0.29 0.33 0.31 0.31 0.34
Lowe’s Cos. Inc. 0.96 0.87 0.66 0.56 0.60 0.47
TJX Cos. Inc. 0.42 0.45 0.44 0.50 0.47 0.16
Debt to Assets (including Operating Lease Liability), Sector
Consumer Discretionary Distribution & Retail 0.38 0.40 0.38 0.40 0.39
Debt to Assets (including Operating Lease Liability), Industry
Consumer Discretionary 0.43 0.44 0.45 0.50 0.50

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 52,243 ÷ 76,530 = 0.68

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Home Depot Inc. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 and from 2023 to 2024.

Financial Leverage

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

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Selected Financial Data (US$ in millions)
Total assets 76,530 76,445 71,876 70,581 51,236 44,003
Stockholders’ equity (deficit) 1,044 1,562 (1,696) 3,299 (3,116) (1,878)
Solvency Ratio
Financial leverage1 73.30 48.94 21.39
Benchmarks
Financial Leverage, Competitors2
Amazon.com Inc. 2.61 3.17 3.04 3.44 3.63
Lowe’s Cos. Inc. 32.52 20.02 9.47
TJX Cos. Inc. 4.07 4.45 4.74 5.28 4.06 2.84
Financial Leverage, Sector
Consumer Discretionary Distribution & Retail 3.46 4.18 3.82 4.44 4.62
Financial Leverage, Industry
Consumer Discretionary 4.00 4.38 4.26 5.72 6.22

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 76,530 ÷ 1,044 = 73.30

2 Click competitor name to see calculations.


Interest Coverage

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

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Selected Financial Data (US$ in millions)
Net earnings 15,143 17,105 16,433 12,866 11,242 11,121
Add: Income tax expense 4,781 5,372 5,304 4,112 3,473 3,435
Add: Interest expense 1,943 1,617 1,347 1,347 1,201 1,051
Earnings before interest and tax (EBIT) 21,867 24,094 23,084 18,325 15,916 15,607
Solvency Ratio
Interest coverage1 11.25 14.90 17.14 13.60 13.25 14.85
Benchmarks
Interest Coverage, Competitors2
Amazon.com Inc. 12.80 -1.51 22.09 15.69 9.73
Lowe’s Cos. Inc. 7.86 8.79 13.49 9.88 8.83 6.21
TJX Cos. Inc. 76.53 56.19 37.80 1.46 75.57 65.36
Interest Coverage, Sector
Consumer Discretionary Distribution & Retail 13.19 7.64 15.91 14.50 11.71
Interest Coverage, Industry
Consumer Discretionary 12.27 9.45 13.29 7.81 9.65

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 21,867 ÷ 1,943 = 11.25

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. interest coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Fixed Charge Coverage

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

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Selected Financial Data (US$ in millions)
Net earnings 15,143 17,105 16,433 12,866 11,242 11,121
Add: Income tax expense 4,781 5,372 5,304 4,112 3,473 3,435
Add: Interest expense 1,943 1,617 1,347 1,347 1,201 1,051
Earnings before interest and tax (EBIT) 21,867 24,094 23,084 18,325 15,916 15,607
Add: Operating lease cost 1,359 1,169 1,084 782 827 1,091
Earnings before fixed charges and tax 23,226 25,263 24,168 19,107 16,743 16,698
 
Interest expense 1,943 1,617 1,347 1,347 1,201 1,051
Operating lease cost 1,359 1,169 1,084 782 827 1,091
Fixed charges 3,302 2,786 2,431 2,129 2,028 2,142
Solvency Ratio
Fixed charge coverage1 7.03 9.07 9.94 8.97 8.26 7.80
Benchmarks
Fixed Charge Coverage, Competitors2
Amazon.com Inc. 3.73 0.47 5.24 4.63 3.65
Lowe’s Cos. Inc. 5.82 5.77 8.02 6.05 5.04 3.68
TJX Cos. Inc. 3.85 3.31 3.17 1.04 3.43 3.39
Fixed Charge Coverage, Sector
Consumer Discretionary Distribution & Retail 4.61 2.82 5.29 5.11 4.46
Fixed Charge Coverage, Industry
Consumer Discretionary 4.98 3.70 5.63 3.72 4.20

Based on: 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), 10-K (reporting date: 2019-02-03).

1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 23,226 ÷ 3,302 = 7.03

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. fixed charge coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.