HD Debt-to-Equity Ratio Analysis
Higher than 0% of CONSUMER CYCLICAL sector peers
Updated 963h ago·SEC filings & market data
Key Takeaway
Debt-to-equity compares total liabilities to shareholder equity, so 3.18x means Home Depot carries $3.18 of debt for every $1 of equity — a high absolute leverage level.
Sector Performance
0th percentileHD
3.18x
Sector Median
3.18x
Sector Avg
3.18x
Prior Period
3.86x(Aug 2026)
Deep Analysis
Debt-to-equity compares total liabilities to shareholder equity, so 3.18x means Home Depot carries $3.18 of debt for every $1 of equity — a high absolute leverage level.
That figure sits exactly at the consumer cyclical sector median of 3.18x, and its 0th percentile rank means no peer carries more debt relative to equity. The metric dropped 17.6% quarter-over-quarter from 3.86x to 3.18x, showing rapid deleveraging despite missing year-over-year data. A high but sector-median level combined with a sharp downward trend lowers near-term financial risk as the balance sheet strengthens. This deleveraging contradicts the cautious overall verdict's implied worry
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about HD?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
How does HD's Debt-to-Equity Ratio compare to its sector?
HD's Debt-to-Equity Ratio of 3.18x compares to a CONSUMER CYCLICAL sector median of 3.18x, placing it in the 0th percentile.
Learn More About Debt-to-Equity Ratio
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Debt/Equity Ratio: How Much Debt Is Too Much?
The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
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3.18x
Sector Median
3.18x
Sector Avg
3.18x
How HD's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.