Home Depot Inc (HD)
Financial leverage ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 76,530,000 | 76,445,000 | 71,876,000 | 70,581,000 | 51,236,000 |
| Total stockholders’ equity | US$ in thousands | 1,044,000 | 1,562,000 | -1,696,000 | 3,299,000 | -3,116,000 |
| Financial leverage ratio | 73.30 | 48.94 | — | 21.39 | — |
January 28, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $76,530,000K ÷ $1,044,000K
= 73.30
The financial leverage ratio of Home Depot Inc has exhibited variability over the years, as evidenced by the data provided. The ratio increased significantly from 21.39 in January 31, 2021, to 48.94 in January 29, 2023, before experiencing another notable upsurge to 73.30 in January 28, 2024. This indicates that the company has been utilizing more debt in its capital structure compared to equity in recent years, which can magnify returns to shareholders but also increase financial risk. The absence of data for January 30, 2022, and February 2, 2020, prevents a complete trend analysis but suggests potential fluctuations in the company's leverage position. Overall, attention should be paid to the evolving financial leverage of Home Depot Inc to assess its impact on the firm's financial stability and shareholder value.
Peer comparison
Jan 28, 2024