The Home Depot, Inc. (HD) Interest Coverage Ratio: 8.66x
The interest coverage ratio for The Home Depot, Inc. (HD) is 8.66x as of Wednesday, June 10, 2026.
HD Interest Coverage Ratio Metrics
INTEREST COVERAGE RATIO
8.66x
HD Competitors' Interest Coverage Ratio
| NAME | MARKET CAP | INTEREST COVERAGE RATIO | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| The Home Depot, Inc. (HD) | — | 8.66x | N/A | N/A | N/A |
| Alibaba Group Holding Limited (BABA) | $271.17B | 6.09x | 10.38x | 8.25x | 6.79x |
| McDonald's Corporation (MCD) | $201.57B | 7.83x | 7.80x | 7.98x | 7.78x |
| The TJX Companies, Inc. (TJX) | $184.59B | N/A | 78.15x | 63.53x | 55.31x |
| Booking Holdings Inc. (BKNG) | $124.69B | 5.74x | 5.79x | 7.78x | 7.72x |
| Lowe's Companies, Inc. (LOW) | $120.69B | 7.22x | 7.05x | 8.26x | 9.97x |
| Starbucks Corporation (SBUX) | $112.74B | 6.60x | 8.11x | 9.11x | 8.40x |
| Marriott International, Inc. (MAR) | $101.90B | 5.12x | 5.27x | 6.49x | 5.06x |
| MercadoLibre, Inc. (MELI) | $81.30B | 21.63x | 19.41x | 13.82x | 9.74x |
| Hilton Worldwide Holdings Inc. (HLT) | $76.74B | 4.34x | 4.25x | 4.59x | 4.18x |
Financial Health Indicators
Interest Coverage
8.7x
Debt/Equity
5.10
Current Ratio
1.06
Formula: Interest Coverage = EBIT / Interest Expense
Reference ranges:
- < 1.5x: EBIT is less than 1.5 times interest expense
- 1.5x - 3x: EBIT is between 1.5 and 3 times interest expense
- 3x - 5x: EBIT is between 3 and 5 times interest expense
- > 5x: EBIT is more than 5 times interest expense
Note: Interest coverage should be compared with historical interest expense, operating income, and industry capital structure.
The Home Depot, Inc. Interest Coverage Ratio Formula & Definition
Interest Coverage = EBIT / Interest Expense
The interest coverage ratio measures operating earnings relative to interest expense.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
The Home Depot, Inc. Interest Coverage Ratio FAQ
- What is the interest coverage ratio for The Home Depot, Inc. (HD)?
- The interest coverage ratio for HD stock is 8.66x.
About The Home Depot, Inc.
The Home Depot, Inc. operates as a prominent retailer specializing in home renovation and improvement. Through its expansive network of "The Home Depot" stores, it furnishes consumers with an extensive array of goods, including building materials, home enhancement products, lawn and garden supplies, decorative items, and facilities maintenance, repair, and operational (MRO) supplies. In addition to selling products, the company extends professional installation services for key home features like flooring, cabinetry (including makeovers), countertops, furnaces and central air conditioning systems, and window replacements. Customers can also access tool and equipment rental options. Its diverse clientele includes both individual homeowners and a broad spectrum of professional clients, such as renovators, general contractors, maintenance personnel, handymen, property managers, building service contractors, and specialized tradespeople like electricians, plumbers, and painters. The firm also distributes its merchandise through several online platforms, notably homedepot.com, along with specialized sites such as blinds.com for bespoke window coverings and thecompanystore.com for home textiles and decorative goods. By the end of 2021, the corporation operated a total of 2,317 outlets across the United States. Incorporated in 1978, The Home Depot, Inc. maintains its corporate headquarters in Atlanta, Georgia.
- Sector
- Consumer Cyclical
- Industry
- Home Improvement
- CEO
- Edward Decker