Home Depot Inc (HD)

Financial leverage ratio

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Total assets	US$ in thousands	76,530,000	75,577,000	76,387,000	76,386,000	76,445,000	76,866,000	75,825,000	76,567,000	71,876,000	73,031,000	70,769,000	72,567,000	70,581,000	66,919,000	63,349,000	58,737,000	51,236,000	52,309,000	52,010,000	51,515,000
Total stockholders’ equity	US$ in thousands	1,044,000	1,430,000	1,335,000	362,000	1,562,000	1,298,000	237,000	-1,709,000	-1,696,000	1,035,000	2,069,000	1,748,000	3,299,000	1,535,000	-414,000	-3,490,000	-3,116,000	-1,082,000	-1,160,000	-2,143,000
Financial leverage ratio		73.30	52.85	57.22	211.01	48.94	59.22	319.94	—	—	70.56	34.20	41.51	21.39	43.60	—	—	—	—	—	—

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 shown fluctuations over the past several quarters. The ratio was at its highest in April 2023, reaching a value of 211.01, indicating that the company relied heavily on debt to finance its operations during that period. Subsequently, the ratio decreased in the following quarters, with a notable decline to 21.39 in January 2021, suggesting a reduction in the company's debt levels relative to its equity.

Overall, the financial leverage ratio of Home Depot Inc has demonstrated variability, with peaks and troughs observed in different quarters. It is essential for stakeholders to track this ratio over time to assess the company's capital structure and financial risk management strategies.