Home Depot Inc (HD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — |
| 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 | — | — | — | — |
Home Depot Inc's solvency ratios, as indicated by the provided data, demonstrate a strong financial position in terms of leverage and debt management. The Debt-to-assets ratio has consistently remained at 0.00, indicating that the company's total debt is negligible in relation to its total assets across multiple periods.
The Debt-to-capital ratio and Debt-to-equity ratio have also shown stability at 0.00 from July 31, 2022, onwards. These ratios suggest that Home Depot's proportion of debt and equity in its capital structure remains well-balanced and sustainable.
The Financial leverage ratio, which was high at 319.94 on July 31, 2022, has significantly decreased over time, reaching 14.48 on January 31, 2025. This downward trend indicates that the company has been effectively managing its debt levels to reduce financial risk and improve solvency.
Overall, based on these solvency ratios, Home Depot Inc appears to have a solid financial footing with low levels of debt relative to its assets and capital, reflecting a healthy balance sheet and prudent financial management practices.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.30 | 9.66 | 9.57 | 9.45 | 9.63 | 11.11 | 12.64 | 12.80 | 12.69 | 11.82 | 11.92 | 12.67 | 14.67 | 16.12 | 16.41 | 16.32 | 15.11 | 15.36 | 16.41 | 17.95 |
Based on the provided data on Home Depot Inc's interest coverage ratio over several periods, we can see that the company's ability to cover its interest expenses has decreased gradually over time.
From January 30, 2022, to January 31, 2025, the interest coverage ratio decreased from 17.95 to 9.30, indicating a decline in the company's ability to cover its interest payments. This trend suggests that Home Depot Inc may be experiencing challenges in generating enough operating income to meet its interest obligations.
The decreasing trend in the interest coverage ratio could be a concern for investors and creditors as it may indicate a higher risk of default on debt payments in the future. A declining interest coverage ratio could also signal potential financial distress or inefficiencies in managing the company's debt levels.
It is important for Home Depot Inc to closely monitor its interest coverage ratio and take necessary steps to improve its financial performance, such as increasing profitability, reducing debt levels, or refinancing debt at lower interest rates to enhance its ability to meet interest obligations and ensure long-term financial stability.