Home Depot (The)

Balance sheet quality is strong for a retailer of this scale. Credit ratings in the A category and management’s stated leverage target around 2x provide flexibility.

As of Q3 fiscal 2025, short‑term debt was about 3.2 billion, current installments 6.5 billion, and long‑term debt 46.3 billion, offset by about 1.7 billion in cash, with active commercial paper backstops. TTM operating cash flow is approximately 17.65 billion and TTM capex about 3.72 billion, yielding TTM FCF near 13.93 billion before dividends.

The dividend of 9.20 per share annually is well covered, and buybacks remain paused to prioritize deleveraging after SRS and GMS. We see low refinancing risk and ample liquidity to fund capex, integration and steady dividends through cycles.