Home Depot Inc (HD)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.11 | 1.13 | 1.15 | 1.34 | 1.35 | 1.35 | 1.30 | 1.30 | 1.31 | 1.31 | 1.27 | 1.41 | 1.41 | 1.39 | 1.39 | 1.18 | 1.11 | 1.11 | 1.01 | 1.01 |
| Quick ratio | 0.06 | 0.05 | 0.06 | 0.18 | 0.17 | 0.32 | 0.09 | 0.25 | 0.12 | 0.27 | 0.05 | 0.12 | 0.26 | 0.10 | 0.26 | 0.05 | 0.09 | 0.09 | 0.08 | 0.20 |
| 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 |
Home Depot Inc's liquidity ratios, specifically the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, shows a fluctuating trend over the reported periods. The current ratio has generally been above 1, indicating that Home Depot has had ample current assets to cover its current liabilities. However, there are some fluctuations in the ratio, with the ratio improving towards the end of the reporting period, suggesting a strengthened liquidity position.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, reveals a lower level of liquidity compared to the current ratio. The quick ratio has also shown variability over time, indicating fluctuations in the company's ability to cover its short-term obligations without relying on inventory.
Lastly, the cash ratio, which specifically focuses on the company's ability to cover current liabilities with cash and cash equivalents, has exhibited a similar trend to the quick ratio. The company has maintained a relatively low level of cash compared to its current liabilities, which could potentially indicate a reliance on other current assets to meet short-term obligations.
Overall, the liquidity ratios of Home Depot Inc suggest that the company has generally been able to meet its short-term obligations, albeit with some fluctuations in liquidity levels. Monitoring these ratios over time will be crucial to assess the company's ongoing ability to manage its short-term financial obligations effectively.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 80.08 | 84.27 | 84.18 | 85.05 | 79.34 | 47.08 | 77.46 | 47.50 | 80.02 | 49.45 | 94.34 | 91.65 | 54.64 | 88.25 | 54.14 | 90.95 | 36.52 | 94.47 | 81.01 | 38.57 |
The cash conversion cycle of Home Depot Inc fluctuated over the period analyzed. Starting at 38.57 days on January 30, 2022, the cycle increased to a peak of 94.47 days on April 30, 2022, before decreasing to 36.52 days on May 1, 2022. Subsequently, the cycle rose again to 90.95 days on July 31, 2022, before fluctuating between 54.14 days on October 30, 2022, and 88.25 days on October 31, 2022.
From January 29, 2023, to July 31, 2024, the cash conversion cycle fluctuated within a range of approximately 47 to 94 days, with various peaks and troughs observed. Notably, the cycle decreased to 47.08 days on January 28, 2024, and reached its lowest point of 36.52 days on May 1, 2022. It then increased gradually to 80.08 days on January 31, 2025.
Overall, the cash conversion cycle of Home Depot Inc showed fluctuations over the period analyzed, with peaks and troughs occurring intermittently. These variations may indicate changes in the company's efficiency in managing its working capital and converting its resources into cash effectively.