Home Depot Inc (HD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | — | — | — | — | — | — |
| 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 | — | — | — | — | — | — |
| 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 | — | — | — | — | — | — |
Home Depot Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has consistently been reported as 0.00, suggesting that the company relies minimally on debt to finance its assets.
The debt-to-capital and debt-to-equity ratios have also been consistently reported as 0.00, indicating a low level or absence of debt in the capital structure. However, there are instances where the data is missing (denoted by "-"), which may limit the complete assessment of these ratios.
The financial leverage ratio has varied significantly over the periods analyzed, with values ranging from 21.39 to 319.94. This indicates fluctuations in the company's reliance on debt to finance its operations and investments. The spike to 319.94 in April 2023 could be a cause for concern as it suggests a substantial increase in financial leverage during that period.
Overall, the consistently low debt ratios suggest a strong financial position in terms of solvency. However, the significant fluctuations in the financial leverage ratio warrant further investigation to understand the underlying reasons for these changes in leverage over time.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.25 | 11.94 | 12.82 | 13.81 | 14.90 | 16.02 | 16.58 | 16.83 | 17.14 | 16.63 | 15.94 | 15.29 | 13.60 | 13.38 | 13.08 | 12.61 | 13.25 | 13.68 | 14.26 | 14.67 |
The interest coverage ratio for Home Depot Inc has displayed a generally positive trend over the past 20 quarters, indicating the company's ability to meet its interest expenses with its operating income. The ratio has consistently remained above 10, reflecting a strong financial position and operational efficiency.
The sustained increase in the interest coverage ratio from 11.25 in Jan 28, 2024, to 14.67 in May 5, 2019, suggests an improving ability to cover interest expenses. Although there have been slight fluctuations, the overall trend is upwards, showcasing the company's consistent performance in generating earnings relative to its interest obligations.
With the interest coverage consistently above 10 over the observed period, Home Depot Inc has demonstrated resilience and financial stability. This ratio indicates the company's capacity to fulfill its interest payments comfortably, minimizing the risk of default and showing a sound financial health.