Home Depot Inc (HD)
Current ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 31,683,000 | 29,775,000 | 29,775,000 | 32,471,000 | 32,471,000 |
| Total current liabilities | US$ in thousands | 28,661,000 | 22,015,000 | 22,015,000 | 23,110,000 | 23,110,000 |
| Current ratio | 1.11 | 1.35 | 1.35 | 1.41 | 1.41 |
January 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $31,683,000K ÷ $28,661,000K
= 1.11
Based on the provided data, Home Depot Inc's current ratio has been somewhat consistent over the past few years. The current ratio measures the company's ability to cover its short-term obligations with its current assets. Home Depot's current ratio was 1.41 as of January 29, 2023, and January 31, 2023, indicating that for every dollar of current liabilities, the company had $1.41 in current assets.
However, the current ratio decreased slightly to 1.35 as of January 28, 2024, and January 31, 2024, suggesting a slight decrease in the company's ability to cover its short-term obligations with its current assets. This could be attributed to changes in the composition of current assets or liabilities during that period.
As of January 31, 2025, Home Depot Inc's current ratio further declined to 1.11. This decrease indicates that the company may have a lower level of current assets relative to its current liabilities, which could potentially raise concerns about its short-term liquidity position. It would be important for stakeholders to closely monitor this trend in the current ratio to assess Home Depot's liquidity and ability to meet its short-term obligations.
Peer comparison
Jan 31, 2025