Please justify the following in 250 words.

The note should have intext citations. For example, anything with numbers or quotes per paragraph. The intent citation just needs to be the Author's last name and year it was published. Please also include REFERENCES. Thanks.

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I have chosen General Motors and Home Depot as my two companies to compare. Each of these companies falls under different sectors of the economy. General Motors is an American multinational manufacturing company and one of the largest automakers in the world. Until 2008 General Motors was the largest automaker before Toyota took the top spot. General Motors is still the largest automaker in the United States.

General Motors' capital structure consists of $62 billion of total debt and 65.1 billion of book equity, $4 billion obtained in the form of US Government funding, $27.8 billion of trade payable assets, $9 billion in global warranty obligations, and numerous other minor factors. General Motors debt consists of interest-bearing debt including those from the automotive and GM Financial business segments. In this context, GM's total debt includes only current and long-term debt instruments such as company-issued bonds, leases, and credit revolvers that bear interest charges. General Motors' capital structure of GM is composite and rather complicated as the assets and debts of the company are comprised of the company's activities, governmental assistance, obligations, and GM shares. It also has to include the failure or success of their vehicles which will ultimately be the reason for the company to maintain obligations and facilities used to make the vehicles. So, looking at these figures and the possibility of product issues with government regulations it seems GM's debt definitely outweighs its assets.

Home Depot is an American multinational home improvement retail corporation that sells tools, construction products, appliances, and services, including fuel and transportation rentals. Home Depot is the largest home improvement retailer in the United States. In 2021, the company had 490,600 employees and more than $151 billion in revenue from its products. Home Depot capital structure total debt to total equity 3,224.33total debt to total capital 96.99 total debt to total assets 65.88 Interest Coverage 14.87 lLong-term debt to equity 3,085.02 long-term debt to total capital 92.80 long-term debt to Assets 0.63. Home Depot's capital structure is significantly more debt-intensive and creates more risk for Home Depot equity holders in the case that a catastrophic event or a protracted lean period was to cripple the company. Since Hone Depot is publicly traded Home Depot shares are worth a very impressive total of US$426.7b, it seems unlikely that this level of liabilities would be a major threat. Although it is clear that Home Depot should continue to monitor its balance sheet, lest it change for the worse.

Reference:

general motors capital structure - Search (bing.com)

home depot capital structure - Search (bing.com)