Home Depot Inc. (NYSE:HD)

Debt to Equity

The debt to equity ratio shows significant variability across the periods for which data is available, particularly from 23.01 in January 2021 to a striking peak of 173.11 in July 2022. Following this peak, the ratio declines considerably, dropping to 6.57 by May 2025. This indicates periods of extensive leverage followed by substantial deleveraging efforts over subsequent quarters.

Debt to Equity (Including Operating Lease Liability)

This ratio follows a similar pattern to the traditional debt to equity measure but consistently reports slightly higher values due to the inclusion of operating lease liabilities. Like the non-inclusive ratio, it peaks sharply around July 2022 at 199.91, before declining steadily to 7.7 by May 2025, reflecting the same cyclical adjustment in leverage with an emphasis on broader debt obligations.

Debt to Capital

The debt to capital ratio remains relatively stable throughout the periods, fluctuating within a narrow range from 0.87 to 1.11. A slight downward trend is noticeable in the later periods, declining to as low as 0.87 by May 2025. This consistency suggests a maintained balance between debt and equity components in the company’s capital structure.

Debt to Capital (Including Operating Lease Liability)

When including operating lease liabilities, the debt to capital ratio follows a pattern comparable to the standard debt to capital metric but slightly higher. It also reflects a modest decrease over time, ending at 0.89 in May 2025, indicating a stable but cautiously managed capital structure inclusive of lease obligations.

Debt to Assets

The debt to assets ratio shows moderate fluctuation, mostly ranging from 0.49 to 0.61, with some minor variations around these levels across the quarterly data. The ratio remains fairly constant, indicating a stable proportion of assets financed through debt over time, without dramatic shifts.

Debt to Assets (Including Operating Lease Liability)

This measure, which accounts for operating leases, exhibits higher values than the standard debt to assets ratio and fluctuates between 0.58 and 0.73. The trend remains relatively flat without substantial upward or downward movement, suggesting that lease liabilities consistently increase the debt-like obligations relative to total assets.

Financial Leverage

Financial leverage ratios display extreme volatility, particularly notable from January 2021 onwards. Values range from 12.46 to a peak of 319.94 in July 2022, then decrease sharply. This implies periods of unusually high leverage or measurement anomalies, followed by significant deleveraging or financial restructuring efforts, ultimately returning to more moderate levels by May 2025.

Interest Coverage

The interest coverage ratio peaks early in the observed timeline, reaching approximately 17.14 in May 2022, indicating strong ability to cover interest expenses during that period. However, it exhibits a steady downward trend afterwards, declining to a level of 8.87 by May 2025. This reduction suggests a gradual decrease in the company’s capacity to meet interest obligations from operating earnings over the later periods.

The data reveals significant fluctuations and trends in the financial leverage of the company over the analyzed periods. The total debt generally increases over time, with occasional decreases. Starting from approximately 28.3 billion USD in early 2019, total debt rises to peaks above 55 billion USD by mid-2024 before slightly declining towards mid-2025, indicating considerable debt accumulation over the years with some periods of debt reduction.

Stockholders' equity shows substantial volatility, shifting from negative values in 2019 and early 2020 to intermittent positive values thereafter. The equity moves from a deficit near -2.1 billion USD in mid-2019 to positive figures surpassing 7.9 billion USD by early 2025. This suggests periods of recovery and strengthening of equity following substantial deficits, indicating improved financial health in later stages.

The debt-to-equity ratio exhibits considerable variability, reflecting changes in both debt levels and equity positions. Early data points are missing, but from late 2020 onward, the ratio demonstrates marked oscillations. It reaches extremely high levels, such as 173.11 in mid-2022, primarily driven by very low or negative equity values. Later periods show a general declining trend in the ratio, descending from double-digit large multiples down to single digits by mid-2025, implying reduced financial risk and improved capitalization over time. However, some sharp spikes indicate temporary imbalances or fluctuations in equity relative to debt.

Total Debt

Overall upward trend with an increase from roughly 28 billion USD in 2019 to peaks over 55 billion USD by 2024, followed by slight decline.

Stockholders' Equity

Transition from negative to positive territory, reflecting periods of financial strain followed by recovery and equity strengthening.

Debt-to-Equity Ratio

High volatility with spikes correlating with low or negative equity, but a general trend toward reduced leverage and improved equity position by 2025.

The financial data reveals significant fluctuations in both total debt and stockholders’ equity over the observed periods. Total debt, expressed in millions of US dollars, shows a general upward trend with intermittent declines. Starting from approximately 34,198 million in early 2019, the debt levels reached a peak of around 64,612 million by mid-2024 before experiencing a slight decrease toward the final periods, ending near 61,291 million. This pattern indicates an overall increase in leverage over five years, though periodic reductions suggest efforts to manage or reduce obligations at times.

Stockholders’ equity presents a volatile and initially negative position that gradually improves across the timeline. Starting with a deficit of about -2,143 million in May 2019, equity remains negative and relatively unstable through early 2020, reaching a low near -3,490 million. From mid-2020 onward, the equity position shifts towards positive territory with increasing values, hitting approximately 7,955 million by early 2025. This positive turn reflects strengthening capital base or retained earnings accumulation, indicating an improvement in the financial foundation over time despite earlier challenges.

The debt to equity ratio, incorporating operating lease liabilities, underscores the interplay between liabilities and equity, revealing periods of extreme leverage. Data is intermittently available but shows very high ratios during some quarters, with notable spikes to levels above 100 and even nearly 200 in periods following early 2022. These spikes correspond to times when equity was near zero or negative, magnifying leverage ratios. Over the most recent periods, the ratio declines to single digits, coinciding with the recovery and growth of equity. This pattern suggests phases of financial stress or restructuring, followed by stabilization and strengthening of the equity base relative to debt.

Total Debt Trends

The overall increase in total debt across the timeline signals a rising dependence on borrowed capital; however, fluctuations indicate some active debt management.

Equity Movements

The transition from negative equity positions to positive values highlights a marked improvement in financial strength and net asset position over the observed periods.

Debt to Equity Ratio Variability

The extreme volatility and high peaks in this ratio reflect periods of financial imbalance, while recent declines demonstrate an improved and more balanced capital structure.

In summary, the data indicates a historical trend of increasing leverage accompanied by an initially weak but recovering equity position, ultimately leading to a more balanced financial structure in the latest periods analyzed.

Total Debt

The total debt exhibits a generally upward trend from May 2019 through the early part of 2021, rising from approximately $28.3 billion to over $39 billion by October 2021. Following this, the debt levels fluctuate moderately but maintain a relatively stable range around $41 billion through mid-2023. From that point onward, there is a notable increase, with total debt peaking at approximately $55.7 billion in July 2024 before slightly declining to about $52.3 billion by May 2025.

Total Capital

Total capital follows a similar overall upward movement but with less volatility compared to total debt. Starting near $26.1 billion in May 2019, it steadily increases to just over $40 billion by early 2022. Afterward, it continues to grow moderately, reaching around $45.1 billion by mid-2024. There is then a sharp rise to over $60 billion by late 2024, which stabilizes at roughly that level through the subsequent periods.

Debt to Capital Ratio

The debt to capital ratio starts at an elevated level above 1.0 in mid-2019, indicating total debt exceeding reported total capital during this period. It remains slightly above or around 1.0 until early 2020, after which the ratio steadily declines below 1.0 starting in mid-2020. From there, it continues a gradual downward trend with minor fluctuations, reaching approximately 0.87 by May 2025. This decline suggests that total capital has been increasing at a faster rate than debt over time, improving the company's capital structure relative to debt levels.

Overall Trends and Insights

The data indicates a significant expansion in both debt and capital over the examined period, with total capital showing a particularly strong increase in the later years. The reduction in the debt to capital ratio below 1.0 after mid-2020 marks a positive shift in financial leverage, suggesting improved balance sheet strength. The late 2024 surge in both debt and capital might indicate a major financing event or capital restructuring. Despite total debt reaching its highest levels in 2024, the proportionately larger capital base reduces leverage risk. Overall, the financial position reveals a trend toward enhanced capitalization with manageable debt levels relative to total capital.

The debt-related financial metrics exhibit discernible trends across the observed periods. Total debt, inclusive of operating lease liabilities, shows an overall increasing trajectory from May 2019 through May 2025, with values rising from approximately $34.2 billion to over $61.2 billion. There are fluctuations within this upward trend, including periods where debt levels slightly decline or stabilize, such as between May 2023 and October 2023, but the longer-term pattern is an increase in total debt obligations.

Total capital, also inclusive of operating lease liabilities, similarly demonstrates an increasing pattern over the timeline. Starting at around $32.1 billion in May 2019, total capital grows notably, surpassing $69 billion in 2024 and maintaining that level into early 2025. This growth in capital base aligns generally with the increase in total debt, indicating proportional expansion in the company's capital structure.

The debt-to-capital ratio provides insight into the relative proportion of debt in the company’s capital structure over time. Initially, the ratio exceeds 1.0 in early periods (above 1.07), implying that total debt surpassed total capital at these points. From late 2019 onward, a gradual reduction in this ratio is evident, descending closer to 0.9 by the latter periods of the dataset. This decline suggests a modest improvement in the capital structure, with debt constituting a smaller fraction of total capital. The ratio's downward trend indicates a potential strengthening of financial leverage, with the company managing to increase its capital base at a pace slightly higher than its debt growth in recent years.

In summary, the data indicates that while the company’s absolute total debt and capital have both increased substantially over the observed periods, the proportion of debt relative to total capital has trended downward. This may reflect a strategic approach to balancing leverage and capital financing, improving overall financial stability despite growing debt levels.

Total Debt

Overall increasing trend from $34.2 billion to over $61 billion with some intermediate fluctuations.

Total Capital

Growth from roughly $32.1 billion to about $69 billion, maintaining higher levels in 2024 and 2025.

Debt to Capital Ratio

Decrease from above 1.07 down to near 0.89–0.9, indicating reduced leverage ratio over time.

Debt Level Trends

Total debt exhibited an overall upward trajectory from May 2019 through May 2025, increasing from approximately $28.26 billion to about $52.27 billion. There were periods of relatively moderate changes, such as between May 2019 and February 2020, as well as more pronounced increases later, notably between July 2024 and October 2024 where debt surged from $42.83 billion to $55.74 billion. Some short-term variations are observable, but the long-term pattern reveals substantial growth in total debt levels.

Asset Base Developments

The asset base similarly increased over the course of the observation period, starting near $51.52 billion in May 2019 and reaching approximately $99.16 billion by May 2025. The asset growth was somewhat steady with occasional plateaus and small declines, for example a slight decrease between May 2021 and January 2022. The most notable surge in total assets occurred in the latter part of the period, particularly from July 2024 onward, indicating significant expansion or acquisition activity.

Debt to Assets Ratio Analysis

The debt to assets ratio fluctuated within a range roughly between 0.49 and 0.61 across the analyzed quarters. Early in the period, the ratio peaked at 0.61 in May and February 2020, signaling a higher leverage level relative to assets. Subsequently, the ratio declined to a low point of 0.49 in May 2021, indicating improved balance sheet strength through either asset gains, debt reductions, or both. From 2021 onwards, the ratio oscillated but remained mostly stable within the mid-50% range. The ratio rose again toward the end of the sample, reaching approximately 0.58 in October 2024, before mildly decreasing by May 2025 to 0.53. These movements suggest adjustments in capital structure but no extreme shifts in leverage levels.

Key Insights

The consistent growth in total assets accompanied by an increasing but managed total debt level reflects strategic leveraging to support expansion or operational needs. The stability in the debt to assets ratio despite rising absolute debt levels indicates that asset growth has largely kept pace with debt increments, maintaining a balanced financial risk profile over time. The short-term spikes in debt, particularly towards late 2024, merit attention for potential financing activities or investment initiatives. Overall, the financial structure maintains a moderate leverage position with an emphasis on scaling asset holdings.

Total Debt (including operating lease liability)

The total debt demonstrates an overall increasing trend over the reported intervals. Beginning at approximately $34,198 million in May 2019, it rises with some fluctuations, reaching a notable peak of $64,612 million in July 2024. After this peak, there is a slight decrease toward the end of the period, with total debt measured at $61,291 million by May 2025. Periods such as August 2020 to August 2021 show relative stability in debt levels, while the surge between August 2023 and July 2024 is particularly pronounced.

Total Assets

Total assets exhibit consistent growth throughout the periods evaluated. Starting at roughly $51,515 million in May 2019, assets steadily increase, albeit with minor fluctuations, peaking at approximately $97,264 million in October 2024. This growth aligns with the general expansion of the company's balance sheet. A slight decline follows the October 2024 peak, but total assets remain substantially higher than at the start, at nearly $99,157 million by May 2025.

Debt to Assets Ratio (including operating lease liability)

The debt-to-assets ratio has fluctuated over time, generally oscillating between approximately 0.58 and 0.73. The ratio started at 0.66 in May 2019 and peaked at 0.73 in February 2020. Following that peak, the ratio decreased to a low of 0.58 in May 2021, indicating a period in which asset growth outpaced debt accumulation. Subsequently, the ratio stabilizes around the mid-0.60s with minor variations, ending at 0.62 in May 2025. This suggests a relatively stable leverage position in the later periods despite the increases in both debt and assets.

Summary of Trends

The data reveals a pattern of growth in both debt and assets, with total assets growing at a pace that generally supports the increasing liabilities. The debt-to-assets ratio’s reduction and stabilization after the early 2020 peak indicates improved leverage management or asset accumulation offsetting debt growth. Significant jumps in total debt around mid-2024 do not correspond to proportional changes in the ratio, implying concomitant asset increases. Overall, the company shows an expanding financial scale with maintained leverage levels within a consistent range over the five-year period.

The financial data demonstrates notable fluctuations across several key metrics over the analyzed periods, reflecting varying financial conditions and capital structure dynamics.

Total Assets

The total assets showed a generally upward trend from May 2019 to May 2025. Starting at approximately 51.5 billion USD in May 2019, the assets increased to around 99.2 billion USD by May 2025. Despite some periods of slight decline or stagnation (notably around August 2021 and January 2022), the overall trajectory indicates growth in asset base, with significant jumps observed during late 2023 and early 2024 periods.

Stockholders’ Equity (Deficit)

Stockholders’ equity exhibited more variability. Initially negative and worsening from -2.1 billion USD in May 2019 to -3.4 billion USD by May 2020, it then reversed to positive territory from late 2020 onward. There was a peak at approximately 4.4 billion USD by July 2024 and a continued increase nearing 8.0 billion USD by May 2025. However, periods of negative equity persisted intermittently between mid-2021 and early 2022. The transition to stable positive equity in recent terms may suggest improved profitability, capital inflows, or deleveraging initiatives.

Financial Leverage

The financial leverage ratio was reported sporadically and reveals significant volatility. Initially absent, it showed extremely high values such as 319.94 at an unspecified date, contrasting with considerably lower ratios around 12.46 to 21.39 in the most recent periods. The presence of unusually high ratios and wide swings indicates fluctuations in the relationship between assets and equity, possibly driven by changes in equity levels or shifts in debt structure. The recent decline in leverage ratios reflects a trend towards reduced relative indebtedness or strengthened equity base.

In summary, the data indicates robust asset growth accompanied by a recovery and consolidation of equity positions after initial deficits. The financial leverage exhibited large swings, with recent trends pointing toward improved capital structure stability. These patterns suggest the entity underwent significant financial adjustments over the timeframe, possibly aiming to optimize leverage and enhance financial resilience.

Earnings before interest and tax (EBIT)

The EBIT values exhibit considerable variability over the analyzed periods. Initially, there is a marked increase from 3,612 million USD in May 2019 to a peak of 6,644 million USD in August 2021. This growth phase is interspersed with some fluctuations, notably a decline observed around February 2020 followed by a significant recovery. Post-August 2021, EBIT experiences oscillations with values alternating between moderate decreases and rebounds. The data suggests recurrent cyclical patterns with peaks roughly every year, followed by dips. Towards the most recent quarters, EBIT generally maintains values above 4,000 million USD, indicating sustained earnings capacity despite volatility.

Interest expense

The interest expense displays a steady upward trend throughout the timeline. Starting at 288 million USD in May 2019, the interest cost gradually increases with minor variations, peaking at 638 million USD in October 2024. This incremental rise reflects either increased borrowing, higher interest rates, or a combination of both. The consistency of the upward trend suggests a growing financial leverage or increased cost associated with debt servicing over time.

Interest coverage

Interest coverage ratios begin to appear from February 2020 onward and show a declining trend. The ratio starts at 13.25 and improves somewhat, reaching a high of 17.14 in May 2022, indicating a period where operating earnings substantially exceed interest obligations. However, after this peak, a steady decrease ensues, with the ratio falling to 8.87 by May 2025. This decline signals a diminishing buffer to cover interest expenses, likely due to the rising interest costs in conjunction with EBIT fluctuations. The lower interest coverage toward the end suggests increased financial risk or pressure on operational earnings relative to debt cost.