Home Depot Inc (HD)
Debt-to-capital ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,044,000 | 1,562,000 | -1,696,000 | 3,299,000 | -3,116,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | — | 0.00 | — |
January 28, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,044,000K)
= 0.00
The debt-to-capital ratio for Home Depot Inc has consistently been reported as 0.00 over the past five fiscal years, indicating that the company has not had any debt on its balance sheet in relation to its capital during this period. A debt-to-capital ratio of 0.00 suggests that the company has financed its operations primarily through equity rather than debt, reflecting a strong financial position and potentially lower financial risk. It is important to note that while a low debt-to-capital ratio may be seen as favorable, it can also signify missed opportunities for leveraging debt for potential growth or tax advantages. Despite this, Home Depot Inc's consistent 0.00 debt-to-capital ratio demonstrates a conservative approach to capital structure management over the past five years.
Peer comparison
Jan 28, 2024