The Home DepotXSWX:HD -0.82%83 Interest Coverage is 8.15 as of Apr. 2026, which is 40% below its 10-year median of 13.69. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF312.72. The stock has 3 warning signs investors should review. Among 826 Retail - Cyclical companies, The Home Depot ranks better than 51.94% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. The Home Depot's
Operating Income
for the
three
months ended in Apr. 2026 was CHF3,923 Mil. The Home Depot's Interest Expense for the
three
months ended in Apr. 2026 was CHF-481 Mil.
The Home Depot's interest coverage for the quarter that ended in Apr. 2026 was 8.15.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for The Home Depot's Interest Coverage or its related term are showing as below:
XSWX:HD'
s Interest Coverage Range Over the Past 10 Years
Min: 8.61 Med: 13.69 Max: 17.1
Current: 8.61
XSWX:HD's Interest Coverage is ranked better than 51.94% of 826
companies
in the Retail - Cyclical industry
Industry Median: 7.85
vs XSWX:HD: 8.61
The Home Depot (XSWX:HD) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
The Home Depot Interest Coverage Related Terms
The Home Depot Interest Coverage Historical Data
* Premium members only.
The historical data trend for The Home Depot's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XSWX:HD vs LOW, FND, HVT: Interest Coverage Comparison
For the Home Improvement Retail subindustry, The Home Depot's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Interest Coverage distribution charts can be found below:
* The bar in red indicates where The Home Depot's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
The Home Depot (XSWX:HD) has a Interest Coverage of 8.15 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Home Depot and its competitors. This is 40% below median its historical median of 13.69. Over the past decade, The Home Depot's Interest Coverage has ranged from 8.61 to 17.10. According to the industry distribution chart, The Home Depot ranks #397 out of 826 companies in the Retail - Cyclical industry, placing it in the top 48.1%.
Is The Home Depot's Interest Coverage too high?
The Home Depot's current Interest Coverage of 8.15 is 40% below median its 10-year median of 13.69. Over the past 10 years, this metric has ranged from a low of 8.61 to a high of 17.10. The Retail - Cyclical industry median Interest Coverage is 7.85. The Home Depot's value of 8.15 is 3.8% above this industry median. Based on the distribution chart, The Home Depot ranks #397 out of 826 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, The Home Depot has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does The Home Depot's Interest Coverage compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #397 out of 826 companies for Interest Coverage. This puts The Home Depot in the upper half of its industry. The industry median Interest Coverage is 7.85. The Home Depot's value of 8.15 is 3.8% above this benchmark. Historically, The Home Depot's own Interest Coverage has ranged from 8.61 to 17.10 over the past decade. While the company's 10-year median is 13.69 vs. the industry median of 7.85, The Home Depot has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.85, based on 826 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current Interest Coverage of 8.15 is 3.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current Interest Coverage is 8.15, which is 40% below median its own 10-year median of 13.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Home Depot stock overvalued right now?
The Home Depot (XSWX:HD) has a current Interest Coverage of 8.15. The stock's GF Value™ is CHF312.72, compared to a current price of CHF266.14 — trading 14.9% below its estimated fair value. The current Interest Coverage is 8.15, which is 40% below median its 10-year median of 13.69 and 3.8% above the Retail - Cyclical industry median of 7.85. The Home Depot's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Interest Coverage is 8.15 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Home Depot (XSWX:HD) Overvalued in 2026?
Based on GuruFocus' analysis, The Home Depot stock appears to be undervalued.
The current stock price of CHF266.14 is trading 14.9% below its estimated GF Value™ of CHF312.72.
Key valuation signals for XSWX:HD:
Interest Coverage: 8.15 (40% below median its 10-year median of 13.69)
GF Value™: CHF312.72 vs. price of CHF266.14 (14.9% below fair value)
Industry Position: 3.8% above the Retail - Cyclical median (#397 of 826)
No single metric tells the full story. See the XSWX:HD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Home Depot is the world's largest home improvement specialty retailer, operating 2,361 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, Canada, and Mexico. Its stores offer 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 Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The 2024 tie-up with SRS will help grow professional demand in roofing, pool, and landscaping projects, while the 2025 purchase of GMS will lift building product sales through 1,250 distribution locations.
83GF Score
Get the complete analysis for XSWX:HD
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:HD has been successfully added to your 
