Financial Leverage Over Time
Interest burden is a component of DuPont return on equity analysis calculated by dividing Earnings before Tax
by Earning Before Interest and Taxes EBIT
. This will be 1 for a company with no Interest Expense
Leverage Ratio Over Time
Leverage Ratio is a measure of a firms financial leverage, calculated by dividing Average Assets
by Average Equity
. A component of DuPont return on equity analysis.
Home Depot Corporate Bonds Issued
Home Depot Debt Analysis
The company reports 24.97 B of total liabilities with total debt to equity ratio (D/E)
of 702.5 which implies that the company may not be able to produce enough cash to satisfy its debt commitments. The Home Depot Inc has Current Ratio
of 1.27 indicating that it is not liquid enough and may have problems to pay out
its debt commitments in time.