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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

NAMEMARKET CAPINTEREST COVERAGE RATIOTTM3Y5Y
The Home Depot, Inc. (HD)8.66xN/AN/AN/A
Alibaba Group Holding Limited (BABA)$271.17B6.09x10.38x8.25x6.79x
McDonald's Corporation (MCD)$201.57B7.83x7.80x7.98x7.78x
The TJX Companies, Inc. (TJX)$184.59BN/A78.15x63.53x55.31x
Booking Holdings Inc. (BKNG)$124.69B5.74x5.79x7.78x7.72x
Lowe's Companies, Inc. (LOW)$120.69B7.22x7.05x8.26x9.97x
Starbucks Corporation (SBUX)$112.74B6.60x8.11x9.11x8.40x
Marriott International, Inc. (MAR)$101.90B5.12x5.27x6.49x5.06x
MercadoLibre, Inc. (MELI)$81.30B21.63x19.41x13.82x9.74x
Hilton Worldwide Holdings Inc. (HLT)$76.74B4.34x4.25x4.59x4.18x

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.

Atlanta, GA
470,100 employees
Consumer Cyclical / Home Improvement
Sector
Consumer Cyclical
Industry
Home Improvement
CEO
Edward Decker