Home Depot Inc (HD)
Cash ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,659,000 | 3,760,000 | 3,760,000 | 2,757,000 | 2,757,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 28,661,000 | 22,015,000 | 22,015,000 | 23,110,000 | 23,110,000 |
| Cash ratio | 0.06 | 0.17 | 0.17 | 0.12 | 0.12 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,659,000K
+ $—K)
÷ $28,661,000K
= 0.06
The cash ratio of Home Depot Inc has shown some fluctuations over the past few years. In January 2023 and January 2024, the cash ratio stood at 0.12 and 0.17 respectively, indicating that the company had $0.12 and $0.17 in cash and cash equivalents for every $1 of current liabilities. However, by January 2025, the cash ratio decreased significantly to 0.06, suggesting a lower liquidity position compared to the previous years.
It is important to note that a higher cash ratio is generally preferred as it implies a stronger ability to cover short-term liabilities with cash on hand. Therefore, the declining trend in Home Depot's cash ratio from 2024 to 2025 may be a point of concern regarding its liquidity position that should be closely monitored.
Peer comparison
Jan 31, 2025