Debt to Equity AnalysisDebt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Debt to Equity Over Time Pattern
About Debt to EquityHigh Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging barrowing against the capital invested by the owners.
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Home Depot Debt to Equity Assessment
According to company disclosure The Home Depot has Debt to Equity of 0.0%. This indicator is about the same for the Consumer Cyclical average (which is currently at 0.0) sector, and about the same as Home Improvement Stores (which currently averages 0.0) industry, This indicator is about the same for all stocks average (which is currently at 0.0).