Home Depot Inc (HD)
Current ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 29,775,000 | 32,471,000 | 29,055,000 | 28,477,000 | 19,810,000 |
| Total current liabilities | US$ in thousands | 22,015,000 | 23,110,000 | 28,693,000 | 23,166,000 | 18,375,000 |
| Current ratio | 1.35 | 1.41 | 1.01 | 1.23 | 1.08 |
January 28, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $29,775,000K ÷ $22,015,000K
= 1.35
The current ratio of Home Depot Inc has fluctuated over the past five years, indicating changes in its ability to meet its short-term obligations. In the most recent year, as of January 28, 2024, the current ratio stands at 1.35, suggesting that the company has $1.35 in current assets to cover each dollar of current liabilities. This current ratio is lower than the prior year's ratio of 1.41, indicating a slight decrease in liquidity.
Looking back further, the current ratio was relatively low at 1.01 on January 30, 2022, which may have raised concerns about the company's short-term liquidity position. However, the ratio improved in the subsequent years, reaching 1.23 on January 31, 2021, and 1.08 on February 2, 2020. These improvements suggest that Home Depot Inc enhanced its ability to meet its short-term obligations during those years.
Overall, while the current ratio has shown some variability, staying above 1 in each year implies that Home Depot Inc has generally maintained a sufficient level of current assets to cover its current liabilities. Investors and analysts should continue to monitor future trends in the current ratio to assess the company's liquidity position.
Peer comparison
Jan 28, 2024