Home Depot Inc (HD)
Solvency ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 14.48 | 73.30 | 73.30 | 48.94 | 48.94 |
Home Depot Inc has consistently maintained a strong solvency position, as indicated by its low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio over the periods provided. These ratios have remained at 0.00 across all years, reflecting that the company has minimal debt relative to its assets, capital, and equity.
However, it is worth noting that the financial leverage ratio has fluctuated over the years, with a significant increase from 48.94 in January 2023 to 73.30 in January 2024, before decreasing to 14.48 in January 2025. This suggests that the company's reliance on debt financing relative to its equity has varied. Overall, the data indicates that Home Depot Inc has effectively managed its debt levels and maintains a prudent balance between debt and equity in its capital structure.
Coverage ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Interest coverage | 9.36 | 11.16 | 11.25 | 14.90 | 14.90 |
Home Depot Inc's interest coverage ratio has shown a declining trend over the years based on the provided data. The ratio was 14.90 on both January 29 and 31, 2023, indicating the company's ability to cover its interest expenses approximately 14.90 times. However, there was a notable decrease in the ratio to 11.25 on January 28, 2024, and further to 11.16 on January 31, 2024. This suggests a slightly weakened ability to cover interest expenses during this period.
The trend continued with a decrease to 9.36 on January 31, 2025, indicating a further decline in Home Depot Inc's ability to cover its interest obligations. A lower interest coverage ratio may raise concerns about the company's financial health and its ability to meet debt obligations. It is important for stakeholders to monitor this ratio closely to assess the company's risk of potential financial distress.