Home Depot Inc (HD)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,659,000 | 1,531,000 | 1,613,000 | 4,264,000 | 3,760,000 | 3,760,000 | 2,058,000 | 2,058,000 | 2,814,000 | 2,814,000 | 1,260,000 | 2,757,000 | 2,757,000 | 2,462,000 | 2,462,000 | 1,259,000 | 2,844,000 | 2,844,000 | 2,343,000 | 2,343,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.06 | 0.05 | 0.06 | 0.18 | 0.17 | 0.17 | 0.09 | 0.09 | 0.12 | 0.12 | 0.05 | 0.12 | 0.12 | 0.10 | 0.10 | 0.05 | 0.09 | 0.09 | 0.08 | 0.08 |
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. The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
From January 30, 2022, to May 1, 2022, the cash ratio remained steady at 0.08-0.09, indicating a stable liquidity position. However, there was a drop to 0.05 by July 31, 2022, suggesting a slight decrease in the company's ability to cover its short-term liabilities with cash.
The cash ratio then improved significantly to 0.10 by October 30, 2022, and continued to increase to 0.12 by January 31, 2023. This upward trend indicates a stronger liquidity position for Home Depot Inc during this period.
A slight dip to 0.05 was observed by April 30, 2023, but the ratio quickly recovered to 0.12 by July 31, 2023. This recovery demonstrated the company's ability to efficiently manage its cash position and meet its short-term obligations.
The cash ratio decreased to 0.09 by October 31, 2023, before reaching its highest level of 0.17 by January 31, 2024. This significant increase in the cash ratio indicates that Home Depot Inc had a substantial amount of cash and cash equivalents relative to its short-term liabilities at the end of January 2024.
The ratio dropped to 0.06 by July 31, 2024, and continued to decrease to 0.05 by October 31, 2024, indicating a slight decline in liquidity. As of January 31, 2025, the cash ratio improved slightly to 0.06, still below the peak observed in January 2024.
Overall, the cash ratio of Home Depot Inc has shown fluctuations, with periods of both improvement and decline. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's liquidity position and its ability to meet its short-term obligations.
Peer comparison
Jan 31, 2025