Home Depot Inc (HD)

Activity ratios

Short-term

Turnover ratios

	Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Inventory turnover	4.56	4.33	4.34	4.29	4.60	4.86	4.71	4.70	4.56	4.35	3.87	3.98	4.20	4.14	4.14	4.01	3.92	3.86	4.51	4.67
Receivables turnover	—	—	—	—	—	46.01	—	40.89	—	39.58	—	—	47.44	—	43.00	—	—	—	—	45.18
Payables turnover	—	—	—	—	—	10.16	—	9.34	—	8.37	—	—	9.13	—	8.59	—	6.46	—	—	7.65
Working capital turnover	52.78	40.08	35.94	17.39	18.68	19.73	22.68	22.62	20.90	19.97	21.18	15.96	16.81	17.07	17.07	30.81	42.89	42.29	412.64	427.56

Based on the data provided, let's analyze the activity ratios of Home Depot Inc:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently the company manages its inventory. Home Depot's inventory turnover has been relatively stable over the periods, ranging from 3.86 to 4.86. A higher inventory turnover indicates better sales performance and efficient inventory management.

2. Receivables Turnover: Receivables turnover ratio reflects how quickly the company collects outstanding receivables. Home Depot's receivables turnover data is missing for most periods, except for a few points where it ranged from 39.58 to 47.44. A higher turnover ratio is generally preferable as it indicates faster collection of receivables.

3. Payables Turnover: Payables turnover ratio shows how quickly the company pays its suppliers. Home Depot's payables turnover data is mostly unavailable, with a few points recorded between 6.46 and 10.16. A higher payables turnover ratio suggests more efficient management of payables.

4. Working Capital Turnover: The working capital turnover ratio indicates how effectively the company utilizes its working capital to generate sales. Home Depot's working capital turnover has fluctuated over the periods, with values ranging from 15.96 to 52.78. A higher turnover ratio implies better utilization of working capital.

Overall, while the inventory turnover and working capital turnover ratios suggest efficient operations, the limited data for receivables and payables turnover makes it challenging to provide a comprehensive analysis of Home Depot Inc's activity ratios. A more consistent and complete dataset would be required for a more detailed assessment.

Average number of days

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Days of inventory on hand (DOH)	days	80.08	84.27	84.18	85.05	79.34	75.08	77.46	77.65	80.02	83.85	94.34	91.65	86.91	88.25	88.16	90.95	93.04	94.47	81.01	78.19
Days of sales outstanding (DSO)	days	—	—	—	—	—	7.93	—	8.93	—	9.22	—	—	7.69	—	8.49	—	—	—	—	8.08
Number of days of payables	days	—	—	—	—	—	35.92	—	39.08	—	43.63	—	—	39.96	—	42.51	—	56.52	—	—	47.70

Based on the provided data for Home Depot Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The average number of days the company holds inventory has been relatively stable over the years, ranging between 75 to 95 days.
- A decreasing trend can be observed in recent periods, indicating improved inventory management efficiency.
- Lower DOH values suggest the company is selling inventory faster, which could lead to lower carrying costs and potentially higher turnover.

2. Days of Sales Outstanding (DSO):
- DSO data is missing for most periods, indicating a lack of available information to assess accounts receivable collection efficiency.
- However, in periods where data is provided, the company maintained relatively low DSO values around 7 to 9 days, suggesting efficient collection of receivables.
- A consistently low DSO indicates that the company is effective in collecting payments from customers promptly.

3. Number of Days of Payables:
- Similar to DSO, data for the number of days of payables is largely missing, making it challenging to evaluate the company's payment practices to suppliers.
- However, the available data shows that the company has managed to keep the days of payables at relatively low levels around 36 to 57 days.
- A lower number of days of payables suggests favorable payment terms with suppliers, potentially enhancing liquidity and cash flow management.

Overall, based on the limited information provided, Home Depot Inc appears to have efficient inventory management and collection practices, as indicated by the stable to decreasing trends in DOH and low DSO values. Further insights could be gained with additional data points to provide a more comprehensive analysis of the company's activity ratios.

Long-term

	Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Fixed asset turnover	—	—	—	—	—	5.85	4.92	6.25	4.81	5.87	5.76	4.59	6.14	5.05	6.36	5.01	5.93	4.73	4.79	6.14
Total asset turnover	1.66	1.59	1.54	1.81	1.89	2.00	2.13	2.13	2.08	1.99	1.93	1.95	2.06	2.09	2.09	2.07	1.95	1.92	2.08	2.15

The Fixed Asset Turnover ratio measures a company's ability to generate sales from its investment in fixed assets. For Home Depot Inc, the ratio has fluctuated over the years. It was relatively high at 6.14 in January 2022, decreased to 4.59 in January 2023, and then improved to 6.25 in October 2023. However, as of January 2024 and onwards, the values are not available, possibly due to data unavailability.

On the other hand, the Total Asset Turnover ratio evaluates how efficiently a company utilizes its total assets to generate revenue. Home Depot Inc's Total Asset Turnover ratio has ranged from 1.81 to 2.15 during the period under consideration. The ratio shows some volatility, with a peak of 2.15 in January 2022 and a decrease to 1.54 in July 2024.

These ratios show that Home Depot Inc has been effectively utilizing its fixed assets to generate sales, with fluctuations in performance over time. Additionally, the company's overall efficiency in generating revenue from its total assets has shown variations, indicating different levels of asset utilization efficiency. Further analysis of the company's strategic decisions and operational performance would be needed to understand the reasons behind these fluctuations in the long-term activity ratios.