Home Depot Inc (HD)

Debt-to-equity 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-equity ratio		0.00	0.00	—	0.00	—

January 28, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,044,000K
= 0.00

The debt-to-equity ratio for Home Depot Inc has been consistently reported as 0.00 for the past five years, as indicated in the data provided. This suggests that the company has no debt on its balance sheet relative to its equity during these periods. A debt-to-equity ratio of 0.00 may indicate a conservative financial structure, where the company relies more on equity financing rather than debt. It implies that the company is using predominantly equity to fund its operations and growth, which can signify financial stability and lower financial risk, as there is no debt to repay or interest payments to manage. Investors and stakeholders may view a low or zero debt-to-equity ratio positively, as it reflects a strong financial position and the ability to weather economic downturns or financial challenges. However, it's essential to consider the industry norms and company-specific circumstances when interpreting this ratio, as certain industries may naturally have higher levels of debt for strategic reasons.