Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Home Depot Inc., solvency ratios
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Home Depot Inc. debt to equity ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Home Depot Inc. debt to equity ratio (including operating lease liability) deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Home Depot Inc. debt to capital ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Home Depot Inc. debt to capital ratio (including operating lease liability) deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Home Depot Inc. debt to assets ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Home Depot Inc. debt to assets ratio (including operating lease liability) deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Home Depot Inc. financial leverage ratio increased from 2023 to 2024 but then decreased significantly from 2024 to 2025. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Home Depot Inc. interest coverage ratio deteriorated from 2023 to 2024 and from 2024 to 2025. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Home Depot Inc. fixed charge coverage ratio deteriorated from 2023 to 2024 and from 2024 to 2025. |
Debt to Equity
Home Depot Inc., debt to equity calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 316) | —) | —) | 1,035) | —) | 974) | |
| Current installments of long-term debt | 4,582) | 1,368) | 1,231) | 2,447) | 1,416) | 1,839) | |
| Long-term debt, excluding current installments | 48,485) | 42,743) | 41,962) | 36,604) | 35,822) | 28,670) | |
| Total debt | 53,383) | 44,111) | 43,193) | 40,086) | 37,238) | 31,483) | |
| Stockholders’ equity (deficit) | 6,640) | 1,044) | 1,562) | (1,696) | 3,299) | (3,116) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 8.04 | 42.25 | 27.65 | — | 11.29 | — | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.24 | 0.39 | 0.59 | 0.54 | 0.66 | |
| Lowe’s Cos. Inc. | — | — | — | — | 15.16 | 9.79 | |
| TJX Cos. Inc. | 0.34 | 0.39 | 0.53 | 0.56 | 1.04 | 0.38 | |
| Debt to Equity, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 0.54 | 0.82 | 1.06 | 0.93 | 1.17 | |
| Debt to Equity, Industry | |||||||
| Consumer Discretionary | — | 1.12 | 1.37 | 1.54 | 1.52 | 2.37 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 53,383 ÷ 6,640 = 8.04
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Home Depot Inc. debt to equity ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
Debt to Equity (including Operating Lease Liability)
Home Depot Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 316) | —) | —) | 1,035) | —) | 974) | |
| Current installments of long-term debt | 4,582) | 1,368) | 1,231) | 2,447) | 1,416) | 1,839) | |
| Long-term debt, excluding current installments | 48,485) | 42,743) | 41,962) | 36,604) | 35,822) | 28,670) | |
| Total debt | 53,383) | 44,111) | 43,193) | 40,086) | 37,238) | 31,483) | |
| Current operating lease liabilities | 1,274) | 1,050) | 945) | 830) | 828) | 828) | |
| Long-term operating lease liabilities | 7,633) | 7,082) | 6,226) | 5,353) | 5,356) | 5,066) | |
| Total debt (including operating lease liability) | 62,290) | 52,243) | 50,364) | 46,269) | 43,422) | 37,377) | |
| Stockholders’ equity (deficit) | 6,640) | 1,044) | 1,562) | (1,696) | 3,299) | (3,116) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 9.38 | 50.04 | 32.24 | — | 13.16 | — | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | — | 0.52 | 0.77 | 1.06 | 0.96 | 1.08 | |
| Lowe’s Cos. Inc. | — | — | — | — | 18.24 | 12.04 | |
| TJX Cos. Inc. | 1.52 | 1.72 | 2.00 | 2.08 | 2.66 | 1.93 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 0.91 | 1.31 | 1.67 | 1.46 | 1.76 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | — | 1.42 | 1.72 | 1.94 | 1.90 | 2.84 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= 62,290 ÷ 6,640 = 9.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Home Depot Inc. debt to equity ratio (including operating lease liability) deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
Debt to Capital
Home Depot Inc., debt to capital calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 316) | —) | —) | 1,035) | —) | 974) | |
| Current installments of long-term debt | 4,582) | 1,368) | 1,231) | 2,447) | 1,416) | 1,839) | |
| Long-term debt, excluding current installments | 48,485) | 42,743) | 41,962) | 36,604) | 35,822) | 28,670) | |
| Total debt | 53,383) | 44,111) | 43,193) | 40,086) | 37,238) | 31,483) | |
| Stockholders’ equity (deficit) | 6,640) | 1,044) | 1,562) | (1,696) | 3,299) | (3,116) | |
| Total capital | 60,023) | 45,155) | 44,755) | 38,390) | 40,537) | 28,367) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.89 | 0.98 | 0.97 | 1.04 | 0.92 | 1.11 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.19 | 0.28 | 0.37 | 0.35 | 0.40 | |
| Lowe’s Cos. Inc. | 1.67 | 1.72 | 1.72 | 1.24 | 0.94 | 0.91 | |
| TJX Cos. Inc. | 0.25 | 0.28 | 0.35 | 0.36 | 0.51 | 0.27 | |
| Debt to Capital, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 0.35 | 0.45 | 0.51 | 0.48 | 0.54 | |
| Debt to Capital, Industry | |||||||
| Consumer Discretionary | — | 0.53 | 0.58 | 0.61 | 0.60 | 0.70 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 53,383 ÷ 60,023 = 0.89
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Home Depot Inc. debt to capital ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
Debt to Capital (including Operating Lease Liability)
Home Depot Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 316) | —) | —) | 1,035) | —) | 974) | |
| Current installments of long-term debt | 4,582) | 1,368) | 1,231) | 2,447) | 1,416) | 1,839) | |
| Long-term debt, excluding current installments | 48,485) | 42,743) | 41,962) | 36,604) | 35,822) | 28,670) | |
| Total debt | 53,383) | 44,111) | 43,193) | 40,086) | 37,238) | 31,483) | |
| Current operating lease liabilities | 1,274) | 1,050) | 945) | 830) | 828) | 828) | |
| Long-term operating lease liabilities | 7,633) | 7,082) | 6,226) | 5,353) | 5,356) | 5,066) | |
| Total debt (including operating lease liability) | 62,290) | 52,243) | 50,364) | 46,269) | 43,422) | 37,377) | |
| Stockholders’ equity (deficit) | 6,640) | 1,044) | 1,562) | (1,696) | 3,299) | (3,116) | |
| Total capital (including operating lease liability) | 68,930) | 53,287) | 51,926) | 44,573) | 46,721) | 34,261) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.90 | 0.98 | 0.97 | 1.04 | 0.93 | 1.09 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | — | 0.34 | 0.43 | 0.51 | 0.49 | 0.52 | |
| Lowe’s Cos. Inc. | 1.56 | 1.60 | 1.60 | 1.20 | 0.95 | 0.92 | |
| TJX Cos. Inc. | 0.60 | 0.63 | 0.67 | 0.68 | 0.73 | 0.66 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 0.48 | 0.57 | 0.63 | 0.59 | 0.64 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | — | 0.59 | 0.63 | 0.66 | 0.65 | 0.74 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 62,290 ÷ 68,930 = 0.90
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Home Depot Inc. debt to capital ratio (including operating lease liability) deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
Debt to Assets
Home Depot Inc., debt to assets calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 316) | —) | —) | 1,035) | —) | 974) | |
| Current installments of long-term debt | 4,582) | 1,368) | 1,231) | 2,447) | 1,416) | 1,839) | |
| Long-term debt, excluding current installments | 48,485) | 42,743) | 41,962) | 36,604) | 35,822) | 28,670) | |
| Total debt | 53,383) | 44,111) | 43,193) | 40,086) | 37,238) | 31,483) | |
| Total assets | 96,119) | 76,530) | 76,445) | 71,876) | 70,581) | 51,236) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.56 | 0.58 | 0.57 | 0.56 | 0.53 | 0.61 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.11 | 0.15 | 0.19 | 0.18 | 0.19 | |
| Lowe’s Cos. Inc. | 0.82 | 0.86 | 0.78 | 0.55 | 0.47 | 0.49 | |
| TJX Cos. Inc. | 0.09 | 0.10 | 0.12 | 0.12 | 0.20 | 0.09 | |
| Debt to Assets, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 0.20 | 0.24 | 0.25 | 0.24 | 0.26 | |
| Debt to Assets, Industry | |||||||
| Consumer Discretionary | — | 0.32 | 0.34 | 0.35 | 0.36 | 0.41 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 53,383 ÷ 96,119 = 0.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Home Depot Inc. debt to assets ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
Debt to Assets (including Operating Lease Liability)
Home Depot Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 316) | —) | —) | 1,035) | —) | 974) | |
| Current installments of long-term debt | 4,582) | 1,368) | 1,231) | 2,447) | 1,416) | 1,839) | |
| Long-term debt, excluding current installments | 48,485) | 42,743) | 41,962) | 36,604) | 35,822) | 28,670) | |
| Total debt | 53,383) | 44,111) | 43,193) | 40,086) | 37,238) | 31,483) | |
| Current operating lease liabilities | 1,274) | 1,050) | 945) | 830) | 828) | 828) | |
| Long-term operating lease liabilities | 7,633) | 7,082) | 6,226) | 5,353) | 5,356) | 5,066) | |
| Total debt (including operating lease liability) | 62,290) | 52,243) | 50,364) | 46,269) | 43,422) | 37,377) | |
| Total assets | 96,119) | 76,530) | 76,445) | 71,876) | 70,581) | 51,236) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.65 | 0.68 | 0.66 | 0.64 | 0.62 | 0.73 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | — | 0.24 | 0.29 | 0.33 | 0.31 | 0.31 | |
| Lowe’s Cos. Inc. | 0.92 | 0.96 | 0.87 | 0.66 | 0.56 | 0.60 | |
| TJX Cos. Inc. | 0.40 | 0.42 | 0.45 | 0.44 | 0.50 | 0.47 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 0.33 | 0.38 | 0.40 | 0.38 | 0.40 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | — | 0.41 | 0.43 | 0.44 | 0.45 | 0.50 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 62,290 ÷ 96,119 = 0.65
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Home Depot Inc. debt to assets ratio (including operating lease liability) deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level. |
Financial Leverage
Home Depot Inc., financial leverage calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 96,119) | 76,530) | 76,445) | 71,876) | 70,581) | 51,236) | |
| Stockholders’ equity (deficit) | 6,640) | 1,044) | 1,562) | (1,696) | 3,299) | (3,116) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 14.48 | 73.30 | 48.94 | — | 21.39 | — | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Amazon.com Inc. | — | 2.19 | 2.61 | 3.17 | 3.04 | 3.44 | |
| Lowe’s Cos. Inc. | — | — | — | — | 32.52 | 20.02 | |
| TJX Cos. Inc. | 3.78 | 4.07 | 4.45 | 4.74 | 5.28 | 4.06 | |
| Financial Leverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 2.77 | 3.46 | 4.18 | 3.82 | 4.44 | |
| Financial Leverage, Industry | |||||||
| Consumer Discretionary | — | 3.47 | 4.00 | 4.38 | 4.26 | 5.72 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 96,119 ÷ 6,640 = 14.48
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Home Depot Inc. financial leverage ratio increased from 2023 to 2024 but then decreased significantly from 2024 to 2025. |
Interest Coverage
Home Depot Inc., interest coverage calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings | 14,806) | 15,143) | 17,105) | 16,433) | 12,866) | 11,242) | |
| Add: Income tax expense | 4,600) | 4,781) | 5,372) | 5,304) | 4,112) | 3,473) | |
| Add: Interest expense | 2,321) | 1,943) | 1,617) | 1,347) | 1,347) | 1,201) | |
| Earnings before interest and tax (EBIT) | 21,727) | 21,867) | 24,094) | 23,084) | 18,325) | 15,916) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 9.36 | 11.25 | 14.90 | 17.14 | 13.60 | 13.25 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Amazon.com Inc. | — | 29.48 | 12.80 | -1.51 | 22.09 | 15.69 | |
| Lowe’s Cos. Inc. | 7.22 | 7.86 | 8.79 | 13.49 | 9.88 | 8.83 | |
| TJX Cos. Inc. | 86.30 | 76.53 | 56.19 | 37.80 | 1.46 | 75.57 | |
| Interest Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 18.69 | 13.19 | 7.64 | 15.91 | 14.50 | |
| Interest Coverage, Industry | |||||||
| Consumer Discretionary | — | 14.99 | 12.27 | 9.45 | 13.29 | 7.81 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 21,727 ÷ 2,321 = 9.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Home Depot Inc. interest coverage ratio deteriorated from 2023 to 2024 and from 2024 to 2025. |
Fixed Charge Coverage
Home Depot Inc., fixed charge coverage calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings | 14,806) | 15,143) | 17,105) | 16,433) | 12,866) | 11,242) | |
| Add: Income tax expense | 4,600) | 4,781) | 5,372) | 5,304) | 4,112) | 3,473) | |
| Add: Interest expense | 2,321) | 1,943) | 1,617) | 1,347) | 1,347) | 1,201) | |
| Earnings before interest and tax (EBIT) | 21,727) | 21,867) | 24,094) | 23,084) | 18,325) | 15,916) | |
| Add: Operating lease cost | 1,661) | 1,359) | 1,169) | 1,084) | 782) | 827) | |
| Earnings before fixed charges and tax | 23,388) | 23,226) | 25,263) | 24,168) | 19,107) | 16,743) | |
| Interest expense | 2,321) | 1,943) | 1,617) | 1,347) | 1,347) | 1,201) | |
| Operating lease cost | 1,661) | 1,359) | 1,169) | 1,084) | 782) | 827) | |
| Fixed charges | 3,982) | 3,302) | 2,786) | 2,431) | 2,129) | 2,028) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 5.87 | 7.03 | 9.07 | 9.94 | 8.97 | 8.26 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Amazon.com Inc. | — | 5.77 | 3.73 | 0.47 | 5.24 | 4.63 | |
| Lowe’s Cos. Inc. | 5.19 | 5.82 | 5.77 | 8.02 | 6.05 | 5.04 | |
| TJX Cos. Inc. | 3.98 | 3.85 | 3.31 | 3.17 | 1.04 | 3.43 | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 5.78 | 4.61 | 2.82 | 5.29 | 5.11 | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Discretionary | — | 5.96 | 4.98 | 3.70 | 5.63 | 3.72 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 23,388 ÷ 3,982 = 5.87
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Home Depot Inc. fixed charge coverage ratio deteriorated from 2023 to 2024 and from 2024 to 2025. |