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.