Home Depot Inc (HD)
Quick ratio
| 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 | US$ in thousands | 1,659,000 | 1,531,000 | 1,613,000 | 4,264,000 | 3,760,000 | 3,760,000 | 2,058,000 | 2,058,000 | 2,814,000 | 2,814,000 | 1,260,000 | 2,757,000 | 2,757,000 | 2,462,000 | 2,462,000 | 1,259,000 | 2,844,000 | 2,844,000 | 2,343,000 | 2,343,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | 3,328,000 | — | 3,932,000 | — | 3,836,000 | — | — | 3,317,000 | — | 3,732,000 | — | — | — | — | 3,426,000 |
| Total current liabilities | US$ in thousands | 28,661,000 | 29,092,000 | 28,123,000 | 24,359,000 | 22,015,000 | 22,015,000 | 23,572,000 | 23,572,000 | 24,227,000 | 24,227,000 | 25,446,000 | 23,110,000 | 23,110,000 | 24,280,000 | 24,280,000 | 27,834,000 | 30,387,000 | 30,387,000 | 28,693,000 | 28,693,000 |
| 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 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,659,000K
+ $—K
+ $—K)
÷ $28,661,000K
= 0.06
The quick ratio of Home Depot Inc has exhibited varying trends over the period under review. As of January 30, 2022, the quick ratio stood at 0.20, indicating that the company may have had difficulties in meeting its short-term obligations solely with its most liquid assets. This trend continued into the subsequent months, with the quick ratio dropping to 0.08 by January 31, 2022.
Throughout the following quarters, Home Depot's quick ratio remained relatively low, hovering around 0.09 to 0.12, which suggests a potential liquidity challenge in the short term. However, there was a notable improvement in the quick ratio by October 30, 2022, reaching 0.26, indicating an increase in the company's ability to cover its current liabilities with its quick assets.
The trend of improvement in liquidity continued into the following quarters, with the quick ratio consistently above 0.20 until October 31, 2023, when it dipped to 0.09. Subsequently, there was a sharp increase in the quick ratio to 0.32 by January 28, 2024, indicating a significant strengthening of Home Depot's liquidity position.
In the last few reporting periods, the quick ratio remained relatively stable, ranging between 0.05 to 0.18, with a slight dip to 0.05 by October 31, 2024. This may suggest some fluctuation in the company's ability to cover its short-term obligations with its quick assets.
Overall, Home Depot Inc's quick ratio has shown fluctuations over the period, reflecting varying levels of liquidity and the company's ability to meet its short-term obligations with its liquid assets. Analysts may further investigate the factors contributing to these fluctuations to assess the company's financial health and liquidity management.
Peer comparison
Jan 31, 2025