Home Depot Inc (HD)
Cash ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,760,000 | 2,757,000 | 2,343,000 | 7,895,000 | 2,133,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 22,015,000 | 23,110,000 | 28,693,000 | 23,166,000 | 18,375,000 |
| Cash ratio | 0.17 | 0.12 | 0.08 | 0.34 | 0.12 |
January 28, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,760,000K
+ $—K)
÷ $22,015,000K
= 0.17
The cash ratio of Home Depot Inc has fluctuated over the past five years, ranging from 0.08 in January 2022 to 0.34 in January 2021. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, suggesting that Home Depot had more cash on hand relative to its current liabilities in January 2021 compared to the other years analyzed. Conversely, the lower cash ratios in January 2022 and 2020 indicate a reduced ability to cover short-term obligations with cash alone during those periods. Overall, the varying cash ratios may reflect fluctuations in the company's cash holdings and short-term liabilities, highlighting the importance of closely monitoring changes in liquidity over time.
Peer comparison
Jan 28, 2024