Home Capital Group (TSX:HCG) Debt-to-Equity : 2.72 (As of Jun. 2023)

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What is Home Capital Group Debt-to-Equity?

Home Capital Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was C$100.0 Mil. Home Capital Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was C$4,404.3 Mil. Home Capital Group's Total Stockholders Equity for the quarter that ended in Jun. 2023 was C$1,658.6 Mil. Home Capital Group's debt to equity for the quarter that ended in Jun. 2023 was 2.72.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Home Capital Group's Debt-to-Equity or its related term are showing as below:

TSX:HCG' s Debt-to-Equity Range Over the Past 10 Years
Min: 1.66 Med: 2.21 Max: 5.85
Current: 2.72

During the past 13 years, the highest Debt-to-Equity Ratio of Home Capital Group was 5.85. The lowest was 1.66. And the median was 2.21.

TSX:HCG's Debt-to-Equity is not ranked
in the Banks industry.
Industry Median: 0.66 vs TSX:HCG: 2.72

Home Capital Group Debt-to-Equity Historical Data

The historical data trend for Home Capital Group's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Home Capital Group Debt-to-Equity Chart

Home Capital Group Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Debt-to-Equity

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1.92

2.00

2.01

2.71

3.05

Home Capital Group Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Debt-to-Equity	Get a 7-Day Free Trial															3.28	3.12	3.05	2.88	2.72

Competitive Comparison of Home Capital Group's Debt-to-Equity

For the Mortgage Finance subindustry, Home Capital Group's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Home Capital Group's Debt-to-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Home Capital Group's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Home Capital Group's Debt-to-Equity falls into.

Home Capital Group Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Home Capital Group's Debt to Equity Ratio for the fiscal year that ended in Dec. 2022 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(0	+	4749.235)	/	1555.085
	=	3.05

Home Capital Group's Debt to Equity Ratio for the quarter that ended in Jun. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(100	+	4404.25)	/	1658.646
	=	2.72

Home Capital Group (TSX:HCG) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Home Capital Group Debt-to-Equity Related Terms

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Home Capital Group (TSX:HCG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Home Capital Group Inc (TSX:HCG) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

N/A

Address

145 King Street West, Suite 2300, Toronto, ON, CAN, M5H 1J8

Website

https://www.homecapital.com

Home Capital Group Inc is a specialty finance company that offers residential and commercial mortgage lending, securitization of insured mortgage products, consumer lending, and credit card services. The company also offers deposits via brokers and financial planners, and through its direct-to-consumer deposit brand, Oaken Financial. Home Capital's mortgage lending focuses on homeowners who typically do not meet all the lending criteria of traditional financial institutions.