Home Depot Inc (HD)
Payables turnover
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 101,709,000 | 102,336,000 | 103,012,000 | 103,562,000 | 104,625,000 | 104,577,000 | 103,186,000 | 101,330,000 | 100,325,000 | 97,898,000 | 95,721,000 | 93,380,000 | 87,257,000 | 82,873,000 | 78,629,000 | 73,924,000 | 72,653,000 | 73,071,000 | 72,386,000 | 72,077,000 |
| Payables | US$ in thousands | 10,037,000 | 11,478,000 | 12,104,000 | 12,630,000 | 11,443,000 | 12,402,000 | 14,348,000 | 15,367,000 | 13,462,000 | 13,375,000 | 12,817,000 | 14,494,000 | 11,606,000 | 12,899,000 | 11,691,000 | 10,056,000 | 7,787,000 | 9,240,000 | 9,494,000 | 10,311,000 |
| Payables turnover | 10.13 | 8.92 | 8.51 | 8.20 | 9.14 | 8.43 | 7.19 | 6.59 | 7.45 | 7.32 | 7.47 | 6.44 | 7.52 | 6.42 | 6.73 | 7.35 | 9.33 | 7.91 | 7.62 | 6.99 |
January 28, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $101,709,000K ÷ $10,037,000K
= 10.13
The payables turnover ratio for Home Depot Inc has been fluctuating over the past few periods, indicating variations in how efficiently the company manages its accounts payable. The ratio ranged from 6.42 to 10.13 over the last 20 quarters, with an average of approximately 7.77.
A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently throughout the year, which could be an indication of strong liquidity and efficient management of working capital.
On the other hand, a lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could reflect either extended payment terms negotiated with suppliers or potential cash flow constraints.
It is essential to analyze the trend in payables turnover over time and in conjunction with other financial metrics to get a comprehensive understanding of Home Depot Inc's financial health and efficiency in managing its accounts payable.
Peer comparison
Jan 28, 2024