Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Paying user area
Try for free
Home Depot Inc. pages available for free this week:
- Income Statement
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Net Profit Margin since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Home Depot Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Liquidity Ratios (Summary)
Home Depot Inc., liquidity ratios
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Current ratio | |||||||
| Quick ratio | |||||||
| Cash ratio |
Based on: 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), 10-K (reporting date: 2020-02-02).
- Current Ratio
- The current ratio exhibited fluctuations over the analyzed periods. It began at 1.08 in early 2020, increasing to a peak of 1.41 by early 2023. Following this, a slight decline was observed, with the ratio falling to 1.11 by early 2025. Overall, the current ratio shows an improvement in liquidity until 2023, followed by a moderate reduction, although it remains above 1 throughout most periods, indicating adequate short-term asset coverage against liabilities.
- Quick Ratio
- The quick ratio demonstrated considerable variability. Starting at a low value of 0.23 in 2020, it increased to 0.47 by early 2021, representing an improvement in the company's ability to cover immediate liabilities without relying on inventory. However, the ratio then declined sharply to 0.20 by early 2022, before showing a gradual recovery to 0.32 in early 2024. The most recent figure for early 2025 declined again to 0.23, returning to its initial level. These fluctuations indicate inconsistency in liquid asset availability over the years.
- Cash Ratio
- The cash ratio generally remained low across the periods, indicating a limited amount of cash and cash equivalents relative to current liabilities. The ratio improved from 0.12 in early 2020 to a high of 0.34 in early 2021, but subsequently declined to 0.08 by early 2022. Minor increases followed in early 2023 and early 2024 (0.12 and 0.17 respectively), before a sharp decline to 0.06 in early 2025. This downward trend in the most recent period suggests a decrease in the most liquid assets available to cover short-term obligations.
Current Ratio
Home Depot Inc., current ratio calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Current ratio1 | |||||||
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| TJX Cos. Inc. | |||||||
| Current Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Current Ratio, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 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), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets demonstrate an overall upward trend with fluctuations across the periods analyzed. Starting at 19,810 million USD in early 2020, there was a significant increase in 2021 to 28,477 million USD, followed by a slight rise to 29,055 million USD in 2022. The assets peaked at 32,471 million USD in 2023, then decreased to 29,775 million USD in 2024 before rising again to 31,683 million USD in 2025. This pattern suggests a general growth in short-term asset holdings with periodic adjustments.
- Current Liabilities
- Current liabilities also present a varying pattern, beginning at 18,375 million USD in 2020 and increasing substantially to 23,166 million USD in 2021. A notable rise is observed in 2022 where liabilities peaked at 28,693 million USD, but there was a pronounced decline to 23,110 million USD in 2023 and a continued decrease to 22,015 million USD in 2024. However, the most recent figure for 2025 shows a sharp increase back to 28,661 million USD. This variability indicates fluctuations in short-term obligations over the years.
- Current Ratio
- The current ratio, which measures the company’s ability to cover short-term liabilities with short-term assets, exhibits notable volatility. It started at 1.08 in 2020, improved to 1.23 in 2021, then declined significantly to 1.01 in 2022, indicating almost no margin between assets and liabilities. The ratio then improved markedly to 1.41 in 2023 and slightly decreased to 1.35 in 2024, before dropping again to 1.11 in 2025. These fluctuations suggest intermittent periods of stronger liquidity and periods where the company’s short-term financial strength was more constrained.
Quick Ratio
Home Depot Inc., quick ratio calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | |||||||
| Receivables, net | |||||||
| Total quick assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Quick ratio1 | |||||||
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| TJX Cos. Inc. | |||||||
| Quick Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 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), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets exhibited a fluctuating trend over the analyzed periods. There was a substantial increase from 4,239 million USD in early 2020 to 10,887 million USD in early 2021. Subsequently, the value declined significantly to 5,769 million USD in early 2022, followed by a slight increase to 6,074 million USD in early 2023. The amount further rose to 7,088 million USD in early 2024 but then decreased again to 6,562 million USD in early 2025. Overall, quick assets showed volatility with no clear upward or downward trajectory.
- Current liabilities
- Current liabilities increased steadily from 18,375 million USD in early 2020 to 23,166 million USD in early 2021 and then rose further to 28,693 million USD in early 2022. After this peak, liabilities decreased to 23,110 million USD in early 2023 and dropped slightly to 22,015 million USD in early 2024. However, liabilities surged again to 28,661 million USD in early 2025, nearly reaching the previous peak. The pattern indicates that current liabilities generally increased with some fluctuations, especially notable decreases in 2023 and 2024 before rising sharply again.
- Quick ratio
- The quick ratio, representing liquidity, started low at 0.23 in early 2020, more than doubling to 0.47 in early 2021, reflecting improved short-term financial position. This was followed by a sharp decline to 0.20 in early 2022, then a modest recovery to 0.26 in early 2023, and continued improvement to 0.32 in early 2024. Nonetheless, the ratio dropped again to 0.23 in early 2025, returning to the initial level observed in 2020. Overall, the quick ratio remained below 0.5 throughout the periods, indicating relatively low liquidity and notable volatility.
Cash Ratio
Home Depot Inc., cash ratio calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | |||||||
| Total cash assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Cash ratio1 | |||||||
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| TJX Cos. Inc. | |||||||
| Cash Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 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), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets exhibit significant fluctuations over the observed periods. Starting at 2,133 million USD in early 2020, there is a marked increase to 7,895 million USD by early 2021. This peak is followed by a sharp decline to 2,343 million USD in early 2022. Subsequent years show moderate variability, with cash assets rising again to 3,760 million USD in early 2024 before decreasing to 1,659 million USD by early 2025. Overall, the trend suggests notable volatility in cash holdings, with a particularly prominent spike in 2021.
- Current liabilities
- Current liabilities demonstrate an overall upward trend with some fluctuations throughout the period. Starting at 18,375 million USD in 2020, liabilities increased significantly to 23,166 million USD in 2021 and further to 28,693 million USD in 2022. However, a decrease is observed in 2023 to 23,110 million USD, followed by a slight reduction in 2024 to 22,015 million USD. By 2025, liabilities rise again to 28,661 million USD. This pattern indicates variability but a general increase in current liabilities over the six-year span.
- Cash ratio
- The cash ratio, which measures liquidity by comparing cash assets to current liabilities, follows a fluctuating but generally low pattern. It starts at 0.12 in 2020, increases to a peak of 0.34 in 2021 coinciding with the cash assets peak, then declines sharply to 0.08 in 2022. The ratio modestly recovers to 0.17 in 2024 but falls again to a low of 0.06 in 2025. The overall trend reflects challenges in maintaining high liquidity relative to current liabilities, with ratios consistently below 0.35 and trending downward in recent years.