Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

Analysis of Liquidity Ratios 

Microsoft Excel

Liquidity Ratios (Summary)

Home Depot Inc., liquidity ratios

Microsoft Excel
Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018
Current ratio 1.41 1.01 1.23 1.08 1.11 1.17
Quick ratio 0.26 0.20 0.47 0.23 0.22 0.34
Cash ratio 0.12 0.08 0.34 0.12 0.11 0.22

Based on: 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), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Home Depot Inc. current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Home Depot Inc. quick ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Home Depot Inc. cash ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Current Ratio

Home Depot Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018
Selected Financial Data (US$ in millions)
Current assets 32,471 29,055 28,477 19,810 18,529 18,933
Current liabilities 23,110 28,693 23,166 18,375 16,716 16,194
Liquidity Ratio
Current ratio1 1.41 1.01 1.23 1.08 1.11 1.17
Benchmarks
Current Ratio, Competitors2
Amazon.com Inc. 1.05 0.94 1.14 1.05 1.10
Lowe’s Cos. Inc. 1.10 1.02 1.19 1.01 0.98 1.06
TJX Cos. Inc. 1.21 1.27 1.46 1.24 1.53 1.66
Current Ratio, Sector
Consumer Discretionary Distribution & Retail 1.10 0.98 1.17 1.06 1.10
Current Ratio, Industry
Consumer Discretionary 1.18 1.14 1.24 1.18 1.08

Based on: 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), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 32,471 ÷ 23,110 = 1.41

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Home Depot Inc. current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Quick Ratio

Home Depot Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,757 2,343 7,895 2,133 1,778 3,595
Receivables, net 3,317 3,426 2,992 2,106 1,936 1,952
Total quick assets 6,074 5,769 10,887 4,239 3,714 5,547
 
Current liabilities 23,110 28,693 23,166 18,375 16,716 16,194
Liquidity Ratio
Quick ratio1 0.26 0.20 0.47 0.23 0.22 0.34
Benchmarks
Quick Ratio, Competitors2
Amazon.com Inc. 0.81 0.69 0.86 0.83 0.83
Lowe’s Cos. Inc. 0.09 0.07 0.28 0.06 0.05 0.06
TJX Cos. Inc. 0.59 0.64 1.01 0.50 0.61 0.70
Quick Ratio, Sector
Consumer Discretionary Distribution & Retail 0.68 0.57 0.77 0.68 0.65
Quick Ratio, Industry
Consumer Discretionary 0.84 0.81 0.92 0.89 0.77

Based on: 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), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28).

1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,074 ÷ 23,110 = 0.26

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Home Depot Inc. quick ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Cash Ratio

Home Depot Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,757 2,343 7,895 2,133 1,778 3,595
Total cash assets 2,757 2,343 7,895 2,133 1,778 3,595
 
Current liabilities 23,110 28,693 23,166 18,375 16,716 16,194
Liquidity Ratio
Cash ratio1 0.12 0.08 0.34 0.12 0.11 0.22
Benchmarks
Cash Ratio, Competitors2
Amazon.com Inc. 0.53 0.45 0.68 0.67 0.63
Lowe’s Cos. Inc. 0.09 0.07 0.28 0.06 0.05 0.06
TJX Cos. Inc. 0.53 0.59 0.97 0.45 0.55 0.64
Cash Ratio, Sector
Consumer Discretionary Distribution & Retail 0.44 0.37 0.61 0.54 0.49
Cash Ratio, Industry
Consumer Discretionary 0.57 0.55 0.71 0.70 0.56

Based on: 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), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28).

1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,757 ÷ 23,110 = 0.12

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Home Depot Inc. cash ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.