Home Depot, Inc. (HD) operates as a home improvement retailer primarily in the United States, Canada, and
Question:
Home Depot, Inc. (HD) operates as a home improvement retailer primarily in the United States, Canada, and Mexico. The balance sheet for Home Depot, Inc. (HD) for February 3, 2008, included the following liabilities and owner’s equity:
In Thossands of Dollars Financial Structure
Liabilities
Current liabilities
Accounts payable ............$ 9,185,000
Short-term/current debt ......... 2,047,000
Other current liabilities ......... 1,474,000
Total current liabilities .........$ 12,706,000
Long-term debt ............ 11,383,000
Other long-term liabilities ......... 2,521,000
Long-term liabilities ...........$13,904,000
Stockholder equity ...........$17,714,000
Total .................$44,324,000
a. What are Home Depot’s debt ratio and interest-bearing debt ratio?
b. If the market value of Home Depot’s common equity is $44.90 billion and assuming that Home Depot has no excess cash, what is the firm’s debt-to-enterprise-value ratio?
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
A Home Depots debt ratio is from equation 151 If we consider only its interestbearing debt ...View the full answer
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin
