Home Depot Inc (HD)
Financial leverage ratio
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 96,119,000 | 97,264,000 | 96,846,000 | 79,230,000 | 76,530,000 | 76,530,000 | 75,577,000 | 75,577,000 | 76,387,000 | 76,387,000 | 76,386,000 | 76,445,000 | 76,445,000 | 76,866,000 | 76,866,000 | 75,825,000 | 76,567,000 | 76,567,000 | 71,876,000 | 71,876,000 |
| Total stockholders’ equity | US$ in thousands | 6,640,000 | 5,786,000 | 4,420,000 | 1,820,000 | 1,044,000 | 1,044,000 | 1,430,000 | 1,430,000 | 1,335,000 | 1,335,000 | 362,000 | 1,562,000 | 1,562,000 | 1,298,000 | 1,298,000 | 237,000 | -1,709,000 | -1,709,000 | -1,696,000 | -1,696,000 |
| Financial leverage ratio | 14.48 | 16.81 | 21.91 | 43.53 | 73.30 | 73.30 | 52.85 | 52.85 | 57.22 | 57.22 | 211.01 | 48.94 | 48.94 | 59.22 | 59.22 | 319.94 | — | — | — | — |
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 has shown fluctuations over the years. As of January 31, 2025, the financial leverage ratio stands at 14.48, indicating that the company has a relatively conservative approach to utilizing debt in its capital structure.
Looking at the historical trend, we observe that the financial leverage ratio hit a peak in April 2023 at 211.01, suggesting a higher reliance on debt at that point in time. However, the company gradually reduced its leverage ratio to 16.81 by October 2024, signifying a deleveraging strategy.
Overall, a lower financial leverage ratio implies that Home Depot Inc relies more on equity financing rather than debt to fund its operations and investments, which can enhance financial stability and reduce the risk of financial distress in challenging economic environments. It is essential for investors and stakeholders to monitor the financial leverage ratio in conjunction with other financial metrics to assess the company's capital structure and risk profile effectively.
Peer comparison
Jan 31, 2025