Home Depot Inc. (NYSE:HD)

Debt to Equity

The debt to equity ratio demonstrates significant volatility, with values ranging from double-digit highs above 100 to single digits toward the most recent periods. Initial data from early periods show fluctuating ratios between approximately 11 and 43, spiking dramatically to over 173, followed by a sharp decline and stabilization within a range around 4.9 to 42 thereafter. This indicates fluctuating leverage positions, with periods of high indebtedness relative to equity followed by marked deleveraging over time.

Debt to Equity (Including Operating Lease Liability)

When incorporating operating lease liabilities, the debt to equity ratio reflects similar volatility but at marginally higher levels. Patterns mirror the non-inclusive ratio, with peaks reaching nearly 200 and troughs dropping near 5.75, confirming that lease obligations contribute noticeably to overall leverage but the general trend of high leverage followed by substantial reduction remains consistent.

Debt to Capital

The debt to capital ratio remains relatively stable overall, typically staying close to 0.9 to 1.0, with minor fluctuations. This stability suggests a consistent capital structure with debt forming a significant but steady portion of total capital. The values do not exhibit the extreme volatility seen in debt to equity ratios, indicating more balanced changes in equity and debt position.

Debt to Capital (Including Operating Lease Liability)

Including operating leases results in a slight increase in the debt to capital ratio, but the levels and general trends remain consistent with the standard debt to capital figures. This confirms operating lease obligations have a moderate, stable impact on overall capital structure without causing substantial swings.

Debt to Assets

The debt to assets ratio varies between approximately 0.49 and 0.61 in most periods, indicating that debt consistently makes up roughly half of the company's assets. This ratio exhibits minor fluctuation but no extreme volatility, suggesting steady asset financing practices over time.

Debt to Assets (Including Operating Lease Liability)

Adjusting for operating lease liabilities moderately increases the debt to assets ratio by several percentage points, positioning it closer to a range of approximately 0.58 to 0.71. This underscores the material effect of lease liabilities on total debt when assessed against asset values, though the trend remains relatively consistent with slight variations.

Financial Leverage

Financial leverage ratios show pronounced volatility similar to debt to equity ratios, with large peaks exceeding 300 and troughs falling below 10. These variations suggest periods marked by extremely high leverage, possibly due to short-term financial strategies or market conditions, followed by phases of significant deleveraging and improved equity cushions.

Interest Coverage

The interest coverage ratio exhibits a declining trend over the periods, starting above 12 and declining steadily to under 9 in the most recent data points. Despite the decline, coverage remains above 8, indicating that earnings before interest and taxes still exceed interest obligations by a significant margin, although the trend signals decreasing ability to service interest expense comfortably.

Total Debt

The total debt demonstrates a generally increasing trend over the observed periods. Starting at approximately $35.8 billion, it experiences some fluctuations but largely rises to a peak of about $55.7 billion in the third quarter of 2024, before slightly declining to around $52.3 billion by the last reported period. This increase in total debt indicates an expansion in borrowing or leverage, potentially reflecting strategic investments or operational financing needs.

Stockholders’ Equity (Deficit)

Stockholders' equity shows significant volatility throughout the periods. Initially negative at nearly -$3.5 billion, it moves toward positive territory, reaching approximately $3.3 billion by early 2021. However, it fluctuates over subsequent quarters, including dips into negative values again. From mid-2023 onward, there is a marked improvement with equity steadily increasing to about $10.7 billion by the last period. This pattern suggests periods of financial stress followed by recovery and strengthening of the equity base.

Debt to Equity Ratio

The debt to equity ratio exhibits extreme variability, reflecting the instability in the equity base. Early in the timeline, this ratio attains very high values, with recorded peaks exceeding 170 at certain points, indicative of high leverage and low or negative equity. Over time, as equity improves, the ratio declines substantially, falling below 5 by the latest periods, which suggests a significant reduction in leverage risk and improved balance sheet stability. Nonetheless, the ratio spikes at several intervals, emphasizing the volatility in capital structure.

Overall Analysis

The financial data reveal a company managing fluctuating equity levels alongside an increasing debt load. The high debt to equity ratios at times reflect periods of heightened leverage and potential financial risk. However, the notable recovery in equity and subsequent decrease in leverage ratios later in the timeline indicate successful efforts to stabilize and strengthen the financial position. The overall trend points to a transition from financial volatility toward improved balance sheet health, though the elevated debt levels warrant ongoing monitoring.

The financial data reveals several notable trends in the company's leverage and equity position over the examined periods. The total debt, including operating lease liabilities, has shown a generally increasing trend with some fluctuations. Starting from approximately $41.8 billion in early 2020, the total debt reached a peak of around $64.6 billion in mid-2024 before slightly declining but remaining elevated near $61.3 billion toward mid-2025.

In contrast, stockholders’ equity demonstrated substantial volatility and improvement over time. Initially reporting a negative equity deficit of $3.49 billion in early 2020, the equity position turned positive by late 2020 and maintained positive values thereafter with periodic fluctuations. From roughly $1.5 billion in late 2020, equity increased steadily, reaching above $10.6 billion by mid-2025.

The debt-to-equity ratio, incorporating operating lease liabilities, exhibits considerable swings and significant peaks at various points. Early ratios in late 2020 showed extremely high levels, for example around 26.74 and 13.16, reflecting negative or very low equity in relation to debt. Following this, the ratio fluctuated markedly, reaching extremely elevated levels at certain dates like nearly 200 in mid-2022 and 136.54 in early 2023, indicative of a temporarily strained equity base paired with substantial debt. However, after these peaks, the ratio trended downward significantly, suggesting an improvement in the relative equity position against debt. By mid-2025, the ratio had decreased to around 5.75, indicating a more balanced capital structure.

Overall, the data suggests that although the company maintained high absolute levels of debt throughout the periods covered, its equity position strengthened notably after early 2020. The volatility seen in the debt-to-equity ratio appears driven largely by shifts in equity values rather than large abrupt changes in debt. The observed improvement in equity and the consequent decline in leverage ratios toward the end of the period represent a positive financial stabilization and deleveraging trend.

Total debt

Generally rising over time with a peak near $64.6 billion in mid-2024, followed by slight decreases but remaining elevated.

Stockholders’ equity

Transitioned from negative to positive values beginning late 2020, with a gradual and sustained increase reaching over $10 billion by mid-2025.

Debt-to-equity ratio

Highly volatile with extreme peaks reflecting low equity periods, followed by a significant downward trend indicating improved equity relative to debt by mid-2025.

Total Debt

The total debt demonstrates an overall increasing trend over the analyzed periods. Starting at approximately $35.8 billion, it exhibits fluctuations with some interim decreases but generally escalates towards the later quarters. Notably, there is a significant jump observed around mid-2024, where total debt increases from about $42.8 billion to over $55.7 billion. Following this peak, there is a gradual decline, ending near $52.3 billion in the most recent period. This indicates periods of increased leverage, followed by efforts to reduce debt levels slightly.

Total Capital

Total capital also shows a rising trajectory, albeit with varying momentum. Initial values are around $32.3 billion, progressively climbing in most quarters, with intermittent dips. A marked increase is visible around mid-2024, where total capital surges from approximately $44.7 billion to over $60.1 billion. The capital figures stabilize at a higher plateau thereafter, concluding at close to $63 billion. This pattern suggests capital expansion consistent with debt increases, implying debt-fueled capital growth and likely investment or expansion activities.

Debt to Capital Ratio

The debt to capital ratio starts above 1 at 1.11, indicating total debt exceeding total capital initially. This ratio decreases fairly steadily over time, crossing below 1 by late 2020 and continuing a downward trend thereafter. By mid-2024, the ratio drops to approximately 0.93 and continues declining, reaching about 0.83 in the latest period. This downward trend in the ratio despite rising debt suggests that total capital is increasing at a faster rate than debt, improving the company's leverage position. The reduction in this ratio signals enhanced capital structure strength and potentially reduced financial risk.

Summary of Financial Trends

The analyzed financial data reveal a dynamic capital management scenario, with both total debt and total capital generally increasing over the periods. The notable surge in both metrics around mid-2024 points to a phase of intensified capital deployment, possibly for expansion or strategic initiatives. Concurrently, the steady decline in the debt to capital ratio reflects an improving balance sheet, where capital growth outpaces debt accumulation. This improvement in leverage ratio indicates progress towards a more sustainable financial structure, mitigating concerns over high indebtedness. Overall, the data depict a company actively managing its capital financing mix, with a gradual shift toward lower relative debt levels while supporting capital growth.

The financial data reveals several important trends regarding the company's debt levels and capital structure over the observed periods.

Total Debt (including operating lease liability)

The total debt figures exhibit a fluctuating but generally upward trajectory over the timeline. Starting from approximately $41.75 billion, the debt experienced minor decreases and subsequent increases, reaching peaks above $64.6 billion in mid-2024. Following this peak, there was a gradual decrease toward approximately $61.3 billion by the last reported period. This pattern indicates changes in leverage and borrowing activities with periodic adjustments possibly linked to operational or strategic financing needs.

Total Capital (including operating lease liability)

The total capital figures demonstrate a steadily increasing trend overall, beginning near $38.26 billion and ascending to a level exceeding $71.9 billion by the end of the timeline. While the growth is generally consistent, some quarters show modest declines or stabilization phases, suggesting controlled capital expansion. The rising capital base supports the company's financing capacity and investment capabilities.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio shows a marked improvement in leverage management over time. Initially exceeding 1.0, which indicates debt surpassing total capital, the ratio steadily declines to approximately 0.85 by the final period. This downward trend reflects a relative reduction in debt compared to capital, suggesting enhanced financial stability and potentially lower risk. The gradual ratio decrease highlights efforts to balance leverage prudently despite the absolute increases in debt and capital values.

In summary, the company's financial position displays rising capital levels accompanied by fluctuating but controlled debt increments. The declining debt to capital ratio underscores improving leverage ratios, which may be favorable for long-term financial health and resilience. These trends suggest disciplined capital management amid changing market conditions and strategic financial decisions.

The financial data reveals several notable trends related to the company's debt levels and asset base over the observed periods. Total debt exhibits a general upward trajectory with periodic fluctuations. Following a modest decline from May 2020 to August 2020, total debt gradually increased through the subsequent years, peaking significantly around July 2024 before stabilizing slightly by August 2025.

Total assets show a consistent growth trend throughout the periods under review. Starting from approximately $58.7 billion, the asset base expanded steadily, indicating ongoing investments or asset accumulation. This growth trajectory accelerates markedly from early 2024, culminating in assets exceeding $100 billion by mid-2025.

The ratio of debt to assets demonstrates variability but remains within a relatively narrow range between 0.49 and 0.61. Notably, this ratio declines from 0.61 in May 2020 to a low near 0.49 in May 2021, reflecting a period where asset growth outpaced debt accumulation or possibly debt reduction. Subsequently, the ratio experiences an upward adjustment, peaking around 0.58 in early 2024, coinciding with the sharp increase in total debt levels. Toward the end of the period, there is a slight decrease in the debt to assets ratio, suggesting marginal improvement in financial leverage despite elevated debt balances.

Overall, the analysis points to a company that has consistently increased its asset holdings over the past five years while managing its debt levels with some fluctuations. The debt to asset ratio indicates a moderate leverage position that has generally remained stable, without significant deterioration, despite the notable rise in absolute debt figures in recent periods.

Total Debt Trend

Shows an overall increase with periodic moderate fluctuations, reaching its highest levels in mid-2024 before slightly stabilizing.

Total Asset Trend

Exhibits steady and continuous growth, with accelerated expansion in 2024, surpassing the $100 billion mark by mid-2025.

Debt to Asset Ratio

Varies between 0.49 and 0.61, initially decreasing indicating improved leverage, then increasing coinciding with rising debt, and finally exhibiting signs of stabilization or modest improvement towards the end.

Financial Position Insights

The company maintains moderate leverage with a careful balance between debt levels and asset growth, suggesting prudent financial management despite increased borrowing in recent periods.

Total Debt (including operating lease liability)

The total debt exhibits a fluctuating but generally increasing trend over the observed periods. Starting from approximately $41.75 billion, it decreases slightly and remains relatively stable around the $41 billion to $45 billion range through early 2022. From mid-2022 onward, the debt level experiences a noticeable increase, peaking at $64.6 billion in mid-2024 before gradually declining to around $61.3 billion by mid-2025. This suggests periods of borrowing activity followed by partial repayments or stabilization.

Total Assets

Total assets show a steady upward trajectory throughout the timeline. Beginning at about $58.7 billion, assets increase consistently with minor fluctuations and reach nearly $100 billion by the latest period. This gradual growth reflects asset accumulation possibly through investment, expansion, or appreciation of existing assets. The steady increase in total assets juxtaposed with rising total debt highlights an expanding balance sheet.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio begins at a high level of 0.71 and then declines over the next year to a low near 0.58. Afterwards, it stabilizes around the 0.60 to 0.65 range with some moderate volatility. From early 2024, the ratio rises again to levels near 0.67 before decreasing slightly to 0.61 by mid-2025. This ratio trend indicates that although total debt increased significantly in certain periods, the growth of assets kept pace sufficiently to prevent a proportional increase in leverage. The recent elevated ratio suggests increased leverage risk but remains within a moderate range.

Summary of Financial Position Trends

The data depicts a company with a growing asset base and fluctuating debt levels. The steady asset growth juxtaposed with variable but generally increasing debt indicates strategic leverage usage to support expansion or other financial objectives. The debt to assets ratio remains relatively stable with modest leverage increases at specific intervals, suggesting a balanced approach to managing capital structure. The peak in debt around mid-2024 followed by a decline implies debt management actions were taken to optimize financing costs or risk exposure. Overall, the financial leverage appears controlled while supporting continued asset growth.

Total Assets

Total assets display a generally increasing trend over the observed periods, starting at 58,737 million USD and reaching over 100,000 million USD by the latest dates. There are intermittent fluctuations, such as slight declines or plateauing in certain quarters, but the overall trajectory is upward, indicating ongoing asset growth and expansion over time.

Stockholders’ Equity (Deficit)

Stockholders’ equity shows considerable variability, initially negative and then moving into positive territory around the middle of the timeframe. Following a low point below zero, equity fluctuates but generally trends upward towards positive values, reaching above 10,000 million USD by the latest quarters. This reflects an improvement in net worth attributable to shareholders, suggesting a strengthening financial position but with some volatility in earlier periods.

Financial Leverage

The financial leverage ratio exhibits significant volatility throughout the periods. Early in the data, leverage values fluctuate widely, with spikes to very high ratios indicating increased use of debt relative to equity. In the later periods, there is a noticeable declining trend in leverage, dropping from extremely high levels down to more moderate values around 9 to 12 times. This trend points towards a reduction in financial risk as the company manages to decrease its reliance on debt financing relative to equity.

Summary Insights

The data collectively indicate a company that has been expanding its total asset base consistently over time. The transition from negative to positive stockholders’ equity and its subsequent rise suggest improved financial health and capital structure. The initial high and volatile financial leverage ratios imply that there was a period of elevated financial risk, likely related to the fluctuations in equity levels. However, the reduction in leverage towards the end of the periods measured illustrates heightened financial stability and possibly a strategic shift in capital management.

Earnings Before Interest and Tax (EBIT)

The EBIT values demonstrate a fluctuating pattern over the examined periods. Initially, there is a significant increase from 3,293 million US dollars in May 2020 to a peak of 7,212 million US dollars in July 2022. Following this peak, EBIT shows a general decline with occasional minor recoveries, dropping to 4,198 million US dollars in January 2024 before slightly increasing again to 6,580 million US dollars by August 2025. This volatility suggests variability in operational profitability over time, with identified periods of strong performance followed by notable downturns.

Interest Expense

The interest expense remains relatively stable initially but shows a gradual upward trend throughout the timeline. Starting at 324 million US dollars in May 2020, interest expenses increase consistently and reach a high of 638 million US dollars in February 2025, before a moderate decrease to 575 million US dollars in August 2025. This trend indicates rising financing costs, which could be due to increased debt levels or higher interest rates over the periods analyzed.

Interest Coverage Ratio

The interest coverage ratio exhibits a declining trend despite fluctuations in EBIT and rising interest expenses. From a strong coverage ratio of approximately 12.61 in May 2020, the ratio improves to its peak near 17.14 in January 2022, indicating robust ability to cover interest expenses. However, subsequent periods reveal a steady decrease, ending at about 8.85 in August 2025. This decline suggests decreasing operational profitability relative to interest obligations, potentially signaling increased financial risk or reduced buffer to meet debt servicing requirements.

Overall Trends and Insights

The data reveals an overall increase in operating earnings with significant volatility, coupled with a steady rise in interest expenses. The diminishing interest coverage ratio towards the later periods illustrates a weakening margin of safety for interest payments, reflecting a potential strain on financial health. These trends underscore the necessity for ongoing monitoring of operational efficiency and financing costs to ensure sustainable profitability and manageable financial risk.