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By Ericka

How can the Home Depot reduce Debt?

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I am writing a term paper on how home depot can reduce its debt. Can you provide some examples of this which I will go into depth when completing it? Sources for this information would help as well.

Answer(s)

Answered by Professional Tutor: Mary

Home Depot, like most big companies, carries a lot of debt. It can reduce debt by raising prices or paying lower wages, but those aren't going to work as long term solutions. To avoid shortchanging customers, which can really cause cash flow problems, Home Depot will need to reduce its spending in a way that doesn't affect customers. That can mean restructuring, refinancing, closing stores that are not profitable, lowering the salaries of top executives, and finding related ways to spend less while continuing to keep money coming in. Other stores have done this successfully. You may want to start here for information: http://americasmarkets.usatoday.com/2014/08/20/debt-busters-these-companies-slashed-their-long-term-debt-to-zero/

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