Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Home Depot Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
The liquidity position, as indicated by the current, quick, and cash ratios, exhibits fluctuations over the observed period. Generally, the ratios demonstrate a degree of cyclicality, potentially influenced by seasonal business patterns and strategic financial management.
- Current Ratio
- The current ratio initially decreased from 1.10 to 1.01 between May 2021 and January 2022. A subsequent increase was observed, peaking at 1.41 in January 2023, before declining to 1.11 by February 2026. This suggests periods of improved short-term asset coverage followed by stabilization or slight contraction. The ratio generally remains above 1.0, indicating sufficient current assets to cover current liabilities throughout the period, though the margin of coverage varies.
- Quick Ratio
- The quick ratio demonstrates a more pronounced downward trend from 0.37 in May 2021 to a low of 0.18 in July 2022. It experienced a modest recovery, reaching 0.34 in April 2023, but then decreased to 0.22 by February 2026. This indicates a diminishing ability to meet short-term obligations with the most liquid assets. The quick ratio consistently remains below 0.5, suggesting a reliance on inventory to meet current obligations.
- Cash Ratio
- The cash ratio exhibits the most volatility of the three ratios. It declined significantly from 0.24 in May 2021 to 0.05 in July 2022, before fluctuating between 0.04 and 0.18 over the subsequent periods. The ratio ended at 0.04 in February 2026. This suggests a conservative approach to cash holdings, with significant variations potentially linked to operational cash flow and investment activities. The consistently low values indicate a limited capacity to cover immediate liabilities solely with cash and cash equivalents.
Overall, while the current ratio suggests a generally healthy short-term solvency position, the declining trends in the quick and cash ratios warrant attention. The company appears to be managing its liquidity strategically, potentially prioritizing investments in other assets over maintaining high levels of readily available liquid assets. Continued monitoring of these ratios is recommended to assess any potential risks to short-term financial stability.
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Current Ratio
Home Depot Inc., current ratio calculation (quarterly data)
| Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 34,391) | 36,115) | 35,391) | 34,529) | 31,683) | 32,949) | 32,273) | 32,622) | 29,775) | 30,682) | 31,830) | 32,423) | 32,471) | 33,681) | 32,941) | 33,867) | 29,055) | 30,466) | 28,262) | 30,672) | ||||||
| Current liabilities | 32,424) | 34,367) | 30,846) | 31,589) | 28,661) | 29,092) | 28,123) | 24,359) | 22,015) | 23,572) | 24,227) | 25,446) | 23,110) | 24,280) | 27,834) | 30,387) | 28,693) | 26,903) | 26,666) | 27,758) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Current ratio1 | 1.06 | 1.05 | 1.15 | 1.09 | 1.11 | 1.13 | 1.15 | 1.34 | 1.35 | 1.30 | 1.31 | 1.27 | 1.41 | 1.39 | 1.18 | 1.11 | 1.01 | 1.13 | 1.06 | 1.10 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 1.05 | 1.01 | 1.02 | 1.05 | 1.06 | 1.09 | 1.10 | 1.07 | 1.05 | 0.98 | 0.95 | 0.92 | 0.94 | 0.94 | 0.95 | 0.96 | ||||||
| Lowe’s Cos. Inc. | 1.08 | 1.04 | 1.05 | 1.01 | 1.09 | 1.13 | 1.22 | 1.17 | 1.23 | 1.21 | 1.26 | 1.25 | 1.10 | 1.20 | 1.11 | 1.17 | 1.02 | 1.19 | 1.16 | 1.17 | ||||||
| TJX Cos. Inc. | — | 1.09 | 1.17 | 1.16 | 1.18 | 1.19 | 1.21 | 1.23 | 1.21 | 1.19 | 1.20 | 1.20 | 1.21 | 1.16 | 1.17 | 1.25 | 1.27 | 1.29 | 1.33 | 1.52 | ||||||
Based on: 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q4 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 34,391 ÷ 32,424 = 1.06
2 Click competitor name to see calculations.
The current ratio exhibited fluctuations over the analyzed period, generally indicating a healthy, though varying, ability to cover short-term liabilities with short-term assets. An initial decline is observed, followed by a period of improvement, and then a subsequent leveling off with some renewed volatility towards the end of the period.
- Initial Phase (May 2, 2021 – Jan 30, 2022)
- The current ratio began at 1.10 and decreased to a low of 1.01. This suggests a slight weakening in the company’s short-term liquidity position during this timeframe. While remaining above 1.0, indicating sufficient current assets to cover current liabilities, the decreasing trend warrants attention.
- Improvement Phase (May 1, 2022 – Oct 30, 2022)
- A notable improvement in the current ratio is evident, rising from 1.11 to a peak of 1.39. This indicates a strengthening of the company’s liquidity, potentially due to increased current asset levels or a reduction in current liabilities. The ratio consistently remained above 1.1, demonstrating a comfortable margin of liquidity.
- Stabilization and Volatility (Jan 29, 2023 – Nov 2, 2025)
- Following the peak, the current ratio experienced a period of stabilization, fluctuating between 1.27 and 1.41 before declining to 1.05. This suggests a normalization of liquidity levels. A subsequent increase to 1.15 is observed, followed by a decline to 1.06 and a final increase to 1.06. This recent volatility suggests potential shifts in working capital management or short-term financing strategies.
- Latest Period (Feb 1, 2026)
- The current ratio stands at 1.06, which is consistent with the recent fluctuations. This level suggests the company maintains a basic ability to meet its short-term obligations, but is not demonstrating significant liquidity strength.
Overall, the current ratio demonstrates a dynamic relationship between current assets and current liabilities. While generally healthy, the observed fluctuations suggest the company’s short-term liquidity position is subject to change and requires ongoing monitoring.
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Quick Ratio
Home Depot Inc., quick ratio calculation (quarterly data)
| Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 1,389) | 1,684) | 2,804) | 1,369) | 1,659) | 1,531) | 1,613) | 4,264) | 3,760) | 2,058) | 2,814) | 1,260) | 2,757) | 2,462) | 1,259) | 2,844) | 2,343) | 5,067) | 4,566) | 6,648) | ||||||
| Receivables, net | 5,597) | 6,765) | 5,878) | 5,886) | 4,903) | 5,782) | 5,503) | 4,105) | 3,328) | 3,932) | 3,836) | 4,213) | 3,317) | 3,732) | 3,725) | 3,936) | 3,426) | 3,533) | 3,322) | 3,624) | ||||||
| Total quick assets | 6,986) | 8,449) | 8,682) | 7,255) | 6,562) | 7,313) | 7,116) | 8,369) | 7,088) | 5,990) | 6,650) | 5,473) | 6,074) | 6,194) | 4,984) | 6,780) | 5,769) | 8,600) | 7,888) | 10,272) | ||||||
| Current liabilities | 32,424) | 34,367) | 30,846) | 31,589) | 28,661) | 29,092) | 28,123) | 24,359) | 22,015) | 23,572) | 24,227) | 25,446) | 23,110) | 24,280) | 27,834) | 30,387) | 28,693) | 26,903) | 26,666) | 27,758) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Quick ratio1 | 0.22 | 0.25 | 0.28 | 0.23 | 0.23 | 0.25 | 0.25 | 0.34 | 0.32 | 0.25 | 0.27 | 0.22 | 0.26 | 0.26 | 0.18 | 0.22 | 0.20 | 0.32 | 0.30 | 0.37 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.56 | 0.48 | 0.50 | 0.54 | 0.56 | 0.55 | 0.56 | 0.56 | 0.53 | 0.44 | 0.43 | 0.44 | 0.45 | 0.42 | 0.43 | 0.48 | ||||||
| Lowe’s Cos. Inc. | 0.13 | 0.12 | 0.24 | 0.15 | 0.11 | 0.19 | 0.26 | 0.18 | 0.08 | 0.09 | 0.22 | 0.18 | 0.09 | 0.18 | 0.09 | 0.17 | 0.07 | 0.32 | 0.29 | 0.31 | ||||||
| TJX Cos. Inc. | — | 0.38 | 0.46 | 0.45 | 0.53 | 0.44 | 0.54 | 0.55 | 0.59 | 0.42 | 0.49 | 0.53 | 0.59 | 0.35 | 0.40 | 0.49 | 0.64 | 0.65 | 0.77 | 0.95 | ||||||
Based on: 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q4 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,986 ÷ 32,424 = 0.22
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates fluctuations, generally remaining below 0.5. This indicates a limited ability to meet short-term obligations with the most liquid assets. A review of the trend reveals periods of relative stability interspersed with notable declines and modest recoveries.
- Overall Trend
- The quick ratio experienced a decline from 0.37 in May 2021 to a low of 0.20 in January 2022. A subsequent recovery occurred, peaking at 0.34 in April 2023, before decreasing again to 0.22 in February 2026. The ratio generally oscillates between 0.22 and 0.34 throughout the observed timeframe.
- Short-Term Volatility
- Significant volatility is observed in the earlier portion of the period. The ratio decreased substantially from May 2021 to January 2022, suggesting a potential weakening in the company’s immediate liquidity position during that time. The subsequent increase indicates a partial correction, but the ratio did not return to its initial level.
- Recent Performance
- From October 2023 through February 2026, the quick ratio exhibited a more moderate range of fluctuation, primarily between 0.25 and 0.32. However, the final reported value of 0.22 in February 2026 represents a return towards the lower end of the observed range, potentially signaling a renewed liquidity concern.
- Asset and Liability Relationship
- The values for total quick assets generally remained relatively stable, with fluctuations appearing to be more closely tied to changes in current liabilities. Increases in current liabilities, particularly those observed around May 2022, coincided with decreases in the quick ratio. Conversely, reductions in current liabilities, as seen in late 2022 and early 2023, were associated with improvements in the ratio.
In conclusion, the quick ratio suggests the company maintains a constrained short-term liquidity position. While fluctuations occur, the ratio consistently remains below the commonly cited benchmark of 1.0, indicating a reliance on inventory or other less liquid assets to cover immediate liabilities. Continued monitoring of this ratio, alongside its component parts, is recommended.
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Cash Ratio
Home Depot Inc., cash ratio calculation (quarterly data)
| Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 1,389) | 1,684) | 2,804) | 1,369) | 1,659) | 1,531) | 1,613) | 4,264) | 3,760) | 2,058) | 2,814) | 1,260) | 2,757) | 2,462) | 1,259) | 2,844) | 2,343) | 5,067) | 4,566) | 6,648) | ||||||
| Total cash assets | 1,389) | 1,684) | 2,804) | 1,369) | 1,659) | 1,531) | 1,613) | 4,264) | 3,760) | 2,058) | 2,814) | 1,260) | 2,757) | 2,462) | 1,259) | 2,844) | 2,343) | 5,067) | 4,566) | 6,648) | ||||||
| Current liabilities | 32,424) | 34,367) | 30,846) | 31,589) | 28,661) | 29,092) | 28,123) | 24,359) | 22,015) | 23,572) | 24,227) | 25,446) | 23,110) | 24,280) | 27,834) | 30,387) | 28,693) | 26,903) | 26,666) | 27,758) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Cash ratio1 | 0.04 | 0.05 | 0.09 | 0.04 | 0.06 | 0.05 | 0.06 | 0.18 | 0.17 | 0.09 | 0.12 | 0.05 | 0.12 | 0.10 | 0.05 | 0.09 | 0.08 | 0.19 | 0.17 | 0.24 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.56 | 0.48 | 0.50 | 0.54 | 0.56 | 0.55 | 0.56 | 0.56 | 0.53 | 0.44 | 0.43 | 0.44 | 0.45 | 0.42 | 0.43 | 0.48 | ||||||
| Lowe’s Cos. Inc. | 0.07 | 0.05 | 0.24 | 0.15 | 0.11 | 0.19 | 0.26 | 0.18 | 0.08 | 0.09 | 0.22 | 0.18 | 0.09 | 0.18 | 0.09 | 0.17 | 0.07 | 0.32 | 0.29 | 0.31 | ||||||
| TJX Cos. Inc. | — | 0.33 | 0.41 | 0.39 | 0.48 | 0.39 | 0.49 | 0.50 | 0.54 | 0.37 | 0.44 | 0.48 | 0.53 | 0.30 | 0.35 | 0.43 | 0.59 | 0.60 | 0.71 | 0.89 | ||||||
Based on: 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q4 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,389 ÷ 32,424 = 0.04
2 Click competitor name to see calculations.
The cash ratio for the analyzed period demonstrates considerable fluctuation. Initially, the ratio begins at 0.24 and generally declines over the subsequent quarters, reaching a low of 0.05 in July 2022. A modest recovery is then observed, peaking at 0.18 in January 2024, before again decreasing to 0.04 by February 2026. This pattern suggests potential shifts in the company’s immediate liquidity position and its reliance on cash to cover short-term obligations.
- Overall Trend
- The overall trend indicates a generally low and volatile cash ratio. While there are periods of slight improvement, the ratio consistently remains below 0.20 for the majority of the analyzed timeframe. This suggests the company does not consistently hold a substantial amount of cash relative to its current liabilities.
- Initial Decline (May 2021 – July 2022)
- From May 2021 to July 2022, the cash ratio experiences a significant decline from 0.24 to 0.05. This decrease coincides with a relatively stable level of current liabilities, suggesting a more substantial reduction in total cash assets during this period. This could be attributed to investments, debt repayment, or operational expenditures.
- Fluctuations and Recovery (October 2022 – January 2024)
- Following the low in July 2022, the cash ratio exhibits some volatility, increasing to 0.12 by January 2023 and further to 0.18 by January 2024. This improvement is likely due to an increase in total cash assets, coupled with a decrease in current liabilities during certain quarters within this timeframe. However, this recovery is not sustained.
- Recent Performance (February 2024 – February 2026)
- From February 2024 to February 2026, the cash ratio demonstrates a renewed downward trend, falling from 0.17 to 0.04. This decline occurs alongside fluctuating current liabilities and total cash assets, indicating a potential weakening in the company’s ability to meet its short-term obligations with readily available cash. The final reported value of 0.04 represents the lowest point in the analyzed period.
The observed fluctuations in the cash ratio warrant further investigation into the underlying factors driving these changes, including cash flow patterns, investment strategies, and short-term debt management practices. The consistently low ratio suggests a reliance on other liquid assets or access to credit to meet immediate obligations.
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