Home Depot Inc (HD)
Cash ratio
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,760,000 | 2,058,000 | 2,814,000 | 1,260,000 | 2,757,000 | 2,462,000 | 1,259,000 | 2,844,000 | 2,343,000 | 5,067,000 | 4,566,000 | 6,648,000 | 7,895,000 | 14,652,000 | 14,139,000 | 8,696,000 | 2,133,000 | 2,193,000 | 2,547,000 | 1,882,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 22,015,000 | 23,572,000 | 24,227,000 | 25,446,000 | 23,110,000 | 24,280,000 | 27,834,000 | 30,387,000 | 28,693,000 | 26,903,000 | 26,666,000 | 27,758,000 | 23,166,000 | 25,395,000 | 24,199,000 | 23,348,000 | 18,375,000 | 19,565,000 | 18,798,000 | 19,673,000 |
| Cash ratio | 0.17 | 0.09 | 0.12 | 0.05 | 0.12 | 0.10 | 0.05 | 0.09 | 0.08 | 0.19 | 0.17 | 0.24 | 0.34 | 0.58 | 0.58 | 0.37 | 0.12 | 0.11 | 0.14 | 0.10 |
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 measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a more liquid position and a lower risk of financial distress.
Analyzing the cash ratio of Home Depot Inc over the past several quarters, we observe fluctuations in the ratio. The ratio ranged from 0.05 to 0.58 during the period under review. Notably, the ratio was relatively low in some quarters, such as April 2023 and May 2020, indicating lower cash reserves compared to current liabilities. On the other hand, the ratio reached its peak in November 2020 at 0.58, indicating a strong ability to cover short-term obligations with cash.
Overall, the varying cash ratio of Home Depot Inc suggests fluctuations in its liquidity position over the quarters. Investors and analysts may further examine the company's cash management strategies and overall financial health to understand these fluctuations in the cash ratio.
Peer comparison
Jan 28, 2024