The Home Depot (BUE:HD) Debt-to-EBITDA : 2.60 (As of Jan. 2024)

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What is The Home Depot Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

The Home Depot's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was ARS1,954,832 Mil. The Home Depot's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was ARS40,281,020 Mil. The Home Depot's annualized EBITDA for the quarter that ended in Jan. 2024 was ARS16,266,014 Mil. The Home Depot's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 was 2.60.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

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

BUE:HD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.37 Med: 1.71 Max: 2.08
Current: 2.08

During the past 13 years, the highest Debt-to-EBITDA Ratio of The Home Depot was 2.08. The lowest was 1.37. And the median was 1.71.

BUE:HD's Debt-to-EBITDA is ranked better than
59.52% of 840 companies
in the Retail - Cyclical industry
Industry Median: 2.67 vs BUE:HD: 2.08

The Home Depot Debt-to-EBITDA Historical Data

The historical data trend for The Home Depot's Debt-to-EBITDA 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.

The Home Depot Debt-to-EBITDA Chart

The Home Depot Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Debt-to-EBITDA

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2.05

2.08

1.78

1.86

2.08

The Home Depot Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Debt-to-EBITDA	Get a 7-Day Free Trial															2.27	1.94	1.67	1.96	2.60

Competitive Comparison of The Home Depot's Debt-to-EBITDA

For the Home Improvement Retail subindustry, The Home Depot's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.

The Home Depot's Debt-to-EBITDA Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where The Home Depot's Debt-to-EBITDA falls into.

The Home Depot Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

The Home Depot's Debt-to-EBITDA for the fiscal year that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(1954832.061	+	40281020.448)	/	20303412.896
	=	2.08

The Home Depot's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(1954832.061	+	40281020.448)	/	16266013.676
	=	2.60

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jan. 2024) EBITDA data.

The Home Depot (BUE:HD) Debt-to-EBITDA Explanation

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

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The Home Depot Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of The Home Depot's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

The Home Depot (BUE:HD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The Home Depot Inc (BUE:HD) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

HD:USA HD:Peru HD:Mexico 1HD:Italy 0R1G:UK HDI:Germany HD:Canada HOME34:Brazil

Address

2455 Paces Ferry Road, Atlanta, GA, USA, 30339

Website

https://www.homedepot.com

Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.