Home Depot Inc (HD)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 159,514,000 | 154,596,000 | 149,165,000 | 143,700,000 | 144,992,000 | 153,122,000 | 161,252,000 | 160,799,000 | 158,920,000 | 151,835,000 | 147,791,000 | 149,406,000 | 157,367,000 | 160,444,000 | 160,480,000 | 157,327,000 | 149,254,000 | 147,166,000 | 149,376,000 | 154,775,000 |
| Total current assets | US$ in thousands | 31,683,000 | 32,949,000 | 32,273,000 | 32,622,000 | 29,775,000 | 29,775,000 | 30,682,000 | 30,682,000 | 31,830,000 | 31,830,000 | 32,423,000 | 32,471,000 | 32,471,000 | 33,681,000 | 33,681,000 | 32,941,000 | 33,867,000 | 33,867,000 | 29,055,000 | 29,055,000 |
| Total current liabilities | US$ in thousands | 28,661,000 | 29,092,000 | 28,123,000 | 24,359,000 | 22,015,000 | 22,015,000 | 23,572,000 | 23,572,000 | 24,227,000 | 24,227,000 | 25,446,000 | 23,110,000 | 23,110,000 | 24,280,000 | 24,280,000 | 27,834,000 | 30,387,000 | 30,387,000 | 28,693,000 | 28,693,000 |
| 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 |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $159,514,000K ÷ ($31,683,000K – $28,661,000K)
= 52.78
The working capital turnover ratio of Home Depot Inc has shown fluctuating trends over the observed periods. The ratio stood at 427.56 in January 30, 2022, indicating a high efficiency in utilizing working capital to generate revenue. However, the ratio decreased to 412.64 by January 31, 2022.
Subsequently, there was a significant drop in the working capital turnover to 42.29 in April 30, 2022, and a slight increase to 42.89 in May 1, 2022. This sudden decrease and subsequent stabilization may indicate fluctuations in the efficiency of the company in converting working capital into revenue during this period.
The ratio further decreased to 30.81 by July 31, 2022, possibly signifying challenges in the management of working capital. The ratio continued to show a declining trend, reaching 17.07 by both October 30, 2022 and October 31, 2022.
However, there was a slight uptick in the ratio to 16.81 by January 29, 2023, followed by a decrease to 15.96 by January 31, 2023. Subsequently, the ratio increased to 21.18 by April 30, 2023, and remained relatively stable around the 20 range for the following periods.
By January 31, 2025, the working capital turnover ratio of Home Depot Inc reached 52.78, indicating an improvement in efficiency in utilizing working capital to generate sales revenue. Overall, the fluctuations in the working capital turnover ratio suggest varying levels of effectiveness in managing working capital to generate revenue over the analyzed periods.
Peer comparison
Jan 31, 2025