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.