1. How much and what percentage of Home Depot?s long-term debt matures during the next five fiscal years?2. What are the average annual maturities? In other words, how much of Home Depot's debt matures in each of the next five years?3. Approximately how much is annual interest expense (in dollars)?4. Based on its long-term debt maturities and the company?s cash flows, is Home Depot?s debt manageable? Why or why not do you think so?

Debt Profile

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Fiscal Year 1) Calculate Current Ratio Current Assets Current Liabilities Current Ratio 2) Calculate Leverage Ratios Short Term plus Long Term Debt Total Liabilities Stockholders' Equity Short Term plus Long Term Debt to Stockholder's Equity Total Liabilities to Equity 2019 19,810 18,375 1.08 29,620 54,352 -3,116 N/A N/A 2018 18,529 16,716 1.11 29,202 45,881 -1,878 N/A N/A 2017 18,933 16,194 1.17 27,028 43,075 1,454 18.59 29.63 2016 17,724 14,133 1.25 23,601 38,633 4,333 5.45 8.92 2015 16,484 12,5265 1.32 21,3155 35,657 6,316: 3.375 5.65: 3) Calculate Times Interest Earned Ratio Earnings before Income Taxes Interest Expense Times Interest Earned Ratio 4) Calculate EBITDA to Interest Expense Operating Income + Depreciation and amortization (from cash flow statement) = EBITDA Interest Expense EBITDA to Interest Expense 14,715 1,201 13.25 15,843 2,296 18,139 1,201 15.10 14,556 1,051 14.85 15,530 2,152 17,682 1,051 16.82 13,698 1,057 13.96 14,681 2,062 16,743 1,057 15.84 12,491 972 13.85 13,427 1,973 15,400 972 15.84 11,021 919 12.99 11,774; 1,863 13,637 919 14.84 5) Calculate Short and Long Term Debt to EBITDA Short Term plus Long Term Debt EBITDA Short and Long Term Debt to EBITDA 6) Calculate Short and Long Term Debt to Discretionary Cash Flow Short Term plus Long Term Debt Net Cash Provided by Operating Activities - Capital Expenditures - Cash Divdends Paid = Discretionary Cash Flow Short and Long Term Debt to Discretionary Cash Flow 29,620 18,139 1.63 29,620 13,723 2,678 5,958 5,087 5.82 29,202 17,682 1.65 29,202 13,038 2,442 4,704 5,892 4.96 27,028 16,743 1.61 27,028 12,031 1,897 4,212 5,922 4.56 23,601 15,400 1.53 23,601 9,783 1,621 3,404: 4,758 4.96 21,315 13,637 1.56 21,315 9,373 1,503: 3,031 4,839 4.40 Description Senior Notes Floating Rate Notes Senior Notes Senior Notes Senior Notes Senior Notes Floating Rate Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Principal 500 750 500 1,000 1,350 300 700 1,250 1,000 1,100 1,000 1,300 1,000 1,000 1,000 1,750 3,000 Coupon 2.00% 1.80% 3.95% 4.40% 2.00% 2.00% 3.25% 2.63% 2.70% 3.75% 3.35% 3.00% 2.13% 2.80% 3.90% 2.95% 5.88% Month 6 6 9 4 4 3 3 6 4 2 Maturity 9 4 9 9 12 6 12 Year 2020 2020 2020 2021 2021 2022 2022 2022 2023 2024 2025 2026 2026 2027 2028 2029 2036 Annual Interest 10.00 13.50 19.75 44.00 27.00 6.00 22.75 32.81 27.00 41.25 33.50 39.00 21.25 28.00 39.00 51.63 176.25 2020 500 750 500 Maturities, Fiscal Years 2023 2021 1,000 1,350 2022 300 700 1,250 1,000 2024 1,100 Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Total * weighted average 500 1,000 1,000 1,000 1,000 1,600 1,150 1,500 1,250 1,000 29,500 5.40% 5.95% 4.20% 4.88% 4.40% 4.25% 3.90% 4.50% 3.13% 3.50% 3.76% * 9 4 4 2 3 4 6559 12 12 2040 2041 2043 2044 2045 2046 2047 2048 2049 2056 27.00 59.50 42.00 48.75 44.00 68.00 44.85 67.50 39.06 35.00 1,108.35 1,750 2,350 2,250 1,000 1,100 Fiscal Year 1) Calculate Current Ratio Current Assets Current Liabilities Current Ratio 2) Calculate Leverage Ratios Short Term plus Long Term Debt Total Liabilities Stockholders' Equity Short Term plus Long Term Debt to Stockholder's Equity Total Liabilities to Equity 2019 19,810 18,375 1.08 29,620 54,352 -3,116 N/A N/A 2018 18,529 16,716 1.11 29,202 45,881 -1,878 N/A N/A 2017 18,933 16,194 1.17 27,028 43,075 1,454 18.59 29.63 2016 17,724 14,133 1.25 23,601 38,633 4,333 5.45 8.92 2015 16,484 12,5265 1.32 21,3155 35,657 6,316: 3.375 5.65: 3) Calculate Times Interest Earned Ratio Earnings before Income Taxes Interest Expense Times Interest Earned Ratio 4) Calculate EBITDA to Interest Expense Operating Income + Depreciation and amortization (from cash flow statement) = EBITDA Interest Expense EBITDA to Interest Expense 14,715 1,201 13.25 15,843 2,296 18,139 1,201 15.10 14,556 1,051 14.85 15,530 2,152 17,682 1,051 16.82 13,698 1,057 13.96 14,681 2,062 16,743 1,057 15.84 12,491 972 13.85 13,427 1,973 15,400 972 15.84 11,021 919 12.99 11,774; 1,863 13,637 919 14.84 5) Calculate Short and Long Term Debt to EBITDA Short Term plus Long Term Debt EBITDA Short and Long Term Debt to EBITDA 6) Calculate Short and Long Term Debt to Discretionary Cash Flow Short Term plus Long Term Debt Net Cash Provided by Operating Activities - Capital Expenditures - Cash Divdends Paid = Discretionary Cash Flow Short and Long Term Debt to Discretionary Cash Flow 29,620 18,139 1.63 29,620 13,723 2,678 5,958 5,087 5.82 29,202 17,682 1.65 29,202 13,038 2,442 4,704 5,892 4.96 27,028 16,743 1.61 27,028 12,031 1,897 4,212 5,922 4.56 23,601 15,400 1.53 23,601 9,783 1,621 3,404: 4,758 4.96 21,315 13,637 1.56 21,315 9,373 1,503: 3,031 4,839 4.40 Description Senior Notes Floating Rate Notes Senior Notes Senior Notes Senior Notes Senior Notes Floating Rate Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Principal 500 750 500 1,000 1,350 300 700 1,250 1,000 1,100 1,000 1,300 1,000 1,000 1,000 1,750 3,000 Coupon 2.00% 1.80% 3.95% 4.40% 2.00% 2.00% 3.25% 2.63% 2.70% 3.75% 3.35% 3.00% 2.13% 2.80% 3.90% 2.95% 5.88% Month 6 6 9 4 4 3 3 6 4 2 Maturity 9 4 9 9 12 6 12 Year 2020 2020 2020 2021 2021 2022 2022 2022 2023 2024 2025 2026 2026 2027 2028 2029 2036 Annual Interest 10.00 13.50 19.75 44.00 27.00 6.00 22.75 32.81 27.00 41.25 33.50 39.00 21.25 28.00 39.00 51.63 176.25 2020 500 750 500 Maturities, Fiscal Years 2023 2021 1,000 1,350 2022 300 700 1,250 1,000 2024 1,100 Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Total * weighted average 500 1,000 1,000 1,000 1,000 1,600 1,150 1,500 1,250 1,000 29,500 5.40% 5.95% 4.20% 4.88% 4.40% 4.25% 3.90% 4.50% 3.13% 3.50% 3.76% * 9 4 4 2 3 4 6559 12 12 2040 2041 2043 2044 2045 2046 2047 2048 2049 2056 27.00 59.50 42.00 48.75 44.00 68.00 44.85 67.50 39.06 35.00 1,108.35 1,750 2,350 2,250 1,000 1,100

Answer rating: 100% (QA)

Required 1 Year Amount of maturity of maturity 2020 175... View the full answer