Home Depot Inc (HD)
Financial leverage ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 96,119,000 | 76,530,000 | 76,530,000 | 76,445,000 | 76,445,000 |
| Total stockholders’ equity | US$ in thousands | 6,640,000 | 1,044,000 | 1,044,000 | 1,562,000 | 1,562,000 |
| Financial leverage ratio | 14.48 | 73.30 | 73.30 | 48.94 | 48.94 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $96,119,000K ÷ $6,640,000K
= 14.48
The financial leverage ratio of Home Depot Inc shows significant fluctuations over the analyzed period. Starting at 48.94 in January 2023, the ratio remained stable at the same level until January 2024, when it increased sharply to 73.30. This increase suggests a higher reliance on debt financing relative to equity during that period. However, by January 2025, the financial leverage ratio decreased substantially to 14.48, indicating a reduction in the company's debt relative to its equity. It is essential for investors and stakeholders to closely monitor these changes in the financial leverage ratio to assess Home Depot Inc's financial risk and stability.
Peer comparison
Jan 31, 2025