Stock Analysis on Net
Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

Common-Size Balance Sheet: Assets 

Home Depot Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Feb 1, 2026 Feb 2, 2025 Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021
Cash and cash equivalents 1.32 1.73 4.91 3.61 3.26 11.19
Receivables, net 5.33 5.10 4.35 4.34 4.77 4.24
Merchandise inventories 24.57 24.40 27.41 32.55 30.70 23.56
Other current assets 1.51 1.74 2.24 1.98 1.69 1.36
Current assets 32.72% 32.96% 38.91% 42.48% 40.42% 40.35%
Net property and equipment 26.66 27.78 34.17 33.53 35.06 35.00
Operating lease right-of-use assets 8.76 8.94 10.30 9.08 8.30 8.45
Goodwill 21.26 20.26 11.05 9.74 10.36 10.10
Intangible assets, net 9.83 9.35 4.71 4.35 4.87 5.12
Other assets 0.77 0.71 0.86 0.83 0.98 0.99
Long-term assets 67.28% 67.04% 61.09% 57.52% 59.58% 59.65%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2026-02-01), 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31).

The composition of assets has undergone notable shifts over the five-year period. A significant trend is the decreasing proportion of current assets relative to total assets, while long-term assets have generally increased. Within current assets, cash and cash equivalents experienced a substantial decline, while receivables and other current assets showed modest increases before stabilizing. Merchandise inventories initially rose significantly but have since decreased.

Liquidity Position
The percentage of assets held as cash and cash equivalents decreased considerably from 11.19% in 2021 to 1.32% in 2026. This suggests a shift away from highly liquid assets. Current assets as a percentage of total assets decreased from 40.35% to 32.72% over the same period, indicating a potentially reduced capacity to meet short-term obligations using current assets. Receivables, net, remained relatively stable, fluctuating between 4.24% and 5.33% of total assets.
Inventory Management
Merchandise inventories represented a substantial portion of assets, peaking at 32.55% in 2023. However, a decline is observed in subsequent years, falling to 24.57% in 2026. This could indicate improved inventory turnover or a strategic reduction in inventory levels.
Long-Term Investments
Net property and equipment initially remained stable, then decreased as a percentage of total assets from 35.00% to 26.66%. Operating lease right-of-use assets increased from 8.45% to 10.30% before decreasing to 8.76%, reflecting changes in lease accounting and potentially the company’s leasing strategy. Goodwill and intangible assets experienced a significant increase, particularly between 2023 and 2026, rising from 9.74% and 4.35% to 21.26% and 9.83% respectively. This suggests increased investment in, or valuation of, these long-term assets.

Overall, the asset allocation demonstrates a transition from a more liquid, inventory-heavy position to one with a greater emphasis on long-term assets, particularly goodwill and intangible assets. This shift may reflect a change in business strategy, potentially focusing on brand value and long-term growth initiatives rather than short-term liquidity and inventory holdings.

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