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-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), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05).
The analysis of liquidity ratios over the presented periods reveals several noteworthy trends in the company's short-term financial health.
- Current Ratio
- The current ratio exhibits a generally stable pattern with fluctuations ranging mostly between 1.0 and 1.4. Starting at 1.04 in early May 2019, it experienced a gradual increase reaching a peak of approximately 1.41 by January 2023. Thereafter, the ratio shows a slight decline with moderated variability, ending near 1.15 in August 2025. This suggests consistent ability to cover current liabilities with current assets, with some tightening in more recent periods.
- Quick Ratio
- The quick ratio, which excludes inventory from current assets, displays more pronounced variability. Initially low at 0.21 in May 2019, the ratio increased sharply to a high of 0.69 around August 2020, indicating improved immediate liquidity during that time. Subsequently, it declined and stabilized mostly between 0.2 and 0.3, with a mild upward trend again near mid-2024 and mid-2025. This indicates fluctuations in highly liquid assets relative to current liabilities, with no sustained strong trend but periods of enhanced liquidity.
- Cash Ratio
- The cash ratio starts quite low around 0.1 in May 2019, then rises markedly to a peak of 0.58 in late 2020, demonstrating a significant increase in cash and cash equivalents relative to current liabilities during that period. Following this peak, the ratio diminishes substantially, frequently dropping below 0.1, reaching as low as 0.04 by mid-2025. This indicates reduced cash liquidity in the most recent periods, with cash reserves being a smaller fraction of current obligations.
Overall, the data portrays a company maintaining adequate current assets to cover current liabilities consistently, as reflected by the current ratio remaining above 1. However, the quick and cash ratios highlight considerable variability in the composition of liquidity, suggesting shifts in inventory levels and cash holdings over time. Periods of elevated quick and cash ratios around 2020 may reflect strategic liquidity management possibly influenced by external market conditions. Later trends show a return to more conservative liquidity levels, with cash holdings particularly diminished relative to liabilities, emphasizing the importance of ongoing monitoring of liquid asset buffers.
Current Ratio
Home Depot Inc., current ratio calculation (quarterly data)
| 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 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Current assets | 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) | 28,477) | 34,505) | 31,361) | 27,277) | 19,810) | 21,174) | 20,699) | 20,553) | ||||||||
| Current liabilities | 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) | 23,166) | 25,395) | 24,199) | 23,348) | 18,375) | 19,565) | 18,798) | 19,673) | ||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||||||
| Current ratio1 | 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 | 1.23 | 1.36 | 1.30 | 1.17 | 1.08 | 1.08 | 1.10 | 1.04 | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 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 | 1.14 | 1.12 | 1.20 | 1.05 | 1.05 | 1.11 | 1.18 | 1.08 | ||||||||
| Lowe’s Cos. Inc. | 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 | 1.19 | 1.38 | 1.30 | 1.20 | 1.01 | 1.04 | 1.06 | 1.09 | ||||||||
| TJX Cos. Inc. | — | 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 | 1.46 | 1.41 | 1.51 | 2.20 | 1.24 | 1.22 | 1.25 | 1.23 | ||||||||
Based on: 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), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05).
1 Q2 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 35,391 ÷ 30,846 = 1.15
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct trends in current assets, current liabilities, and the current ratio over the observed periods.
- Current Assets
- Current assets exhibited notable fluctuations throughout the periods. Starting near 20,553 million USD in early 2019, assets increased significantly around mid-2020, reaching a peak of approximately 34,505 million USD in late 2020. After this peak, current assets experienced some variability but generally maintained a high level, fluctuating between approximately 29,000 million USD and 34,000 million USD through 2022 and 2023. In the most recent periods of 2024 and early 2025, current assets show a slightly increasing trend again, reaching around 35,391 million USD, indicating sustained strength in liquid asset holdings.
- Current Liabilities
- Current liabilities started around 19,673 million USD in early 2019 and demonstrated an ongoing upward trend through to 2025. The liabilities increased steadily, peaking at approximately 31,589 million USD by May 2025. There were minor short-term decreases and fluctuations, such as in periods around early 2023, but overall the trend indicates a rising level of short-term financial obligations. This increase in liabilities coincides with the rising level of current assets, suggesting expansion or increased operational scale requiring more resources but also generating more obligations.
- Current Ratio
- The current ratio indicates the company's short-term liquidity position relative to its immediate liabilities. Initially around 1.04 to 1.08 in early 2019 and early 2020, the current ratio improved investment in liquidity during 2020, peaking at approximately 1.41 in early 2023. This peak reflects greater current assets relative to current liabilities and thus a stronger liquidity position. Subsequently, the ratio shows a slight decline but remains above 1.0, fluctuating around 1.1 to 1.15 through 2024 and into early 2025, which still indicates a position of current assets exceeding current liabilities but with reduced buffer compared to the peak.
In summary, the data points to a company experiencing growth in both assets and liabilities, with liquidity levels strengthening significantly during 2020 and early 2023 before normalizing somewhat. The current ratio consistently remaining above 1.0 suggests continuing ability to meet short-term obligations, despite increasing liability levels. The fluctuations in current assets and liabilities indicate active management of working capital, possibly reflecting seasonal or operational cycles.
Quick Ratio
Home Depot Inc., quick ratio calculation (quarterly data)
| 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 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 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) | 7,895) | 14,652) | 14,139) | 8,696) | 2,133) | 2,193) | 2,547) | 1,882) | ||||||||
| Receivables, net | 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) | 2,992) | 2,666) | 2,562) | 2,610) | 2,106) | 2,231) | 2,274) | 2,317) | ||||||||
| Total quick assets | 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) | 10,887) | 17,318) | 16,701) | 11,306) | 4,239) | 4,424) | 4,821) | 4,199) | ||||||||
| Current liabilities | 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) | 23,166) | 25,395) | 24,199) | 23,348) | 18,375) | 19,565) | 18,798) | 19,673) | ||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||||||
| Quick ratio1 | 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 | 0.47 | 0.68 | 0.69 | 0.48 | 0.23 | 0.23 | 0.26 | 0.21 | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 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 | 0.68 | 0.64 | 0.76 | 0.63 | 0.67 | 0.67 | 0.76 | 0.62 | ||||||||
| Lowe’s Cos. Inc. | 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 | 0.28 | 0.52 | 0.60 | 0.34 | 0.06 | 0.06 | 0.13 | 0.18 | ||||||||
| TJX Cos. Inc. | — | 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 | 1.01 | 0.93 | 0.92 | 0.96 | 0.50 | 0.33 | 0.39 | 0.40 | ||||||||
Based on: 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), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05).
1 Q2 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 8,682 ÷ 30,846 = 0.28
2 Click competitor name to see calculations.
- Quick Assets Trend
- The total quick assets demonstrate notable fluctuations over the observed periods. There is a substantial increase from early 2020 through late 2020, peaking around August and November 2020. Following this, quick assets decline sharply entering 2022, with values oscillating between approximately 5,000 to 7,000 million US dollars thereafter. A renewed upward trend is evident starting mid-2023, culminating in another peak close to 8,600 million US dollars in August 2025.
- Current Liabilities Trend
- Current liabilities exhibit a generally increasing trajectory, with some variability. Initially, liabilities remain around 18,000 to 19,000 million US dollars during 2019 and early 2020, then escalate markedly, reaching highs above 30,000 million US dollars by mid-2022. A decline occurs after this peak, followed by another increase from early 2024 onwards, maintaining figures near or above 28,000 million US dollars, indicating a rising short-term obligation load over the period.
- Quick Ratio Analysis
- The quick ratio reflects the relationship between quick assets and current liabilities, ranging mostly between 0.2 and 0.7. It peaks in mid to late 2020 coinciding with peak quick assets and slightly moderated liabilities, indicating improved short-term liquidity during that time. Subsequently, the ratio declines and stabilizes near 0.2 to 0.3 in the years following, suggesting tighter liquidity conditions. Minor improvements are seen again towards mid-2024 and 2025, but the ratio remains below 0.35, indicating relatively low coverage of current liabilities by quick assets across all periods.
- Overall Insights
- The data depicts significant volatility in quick assets and current liabilities, with liabilities generally growing faster than liquid assets. The resulting low quick ratio highlights potential liquidity constraints or aggressive short-term financing strategies. Periods of improved liquidity in 2020 and late 2024 appear transient. Monitoring this ratio is advisable to ensure adequate capacity to meet short-term obligations, as the ratios consistently remain below the benchmark indicative of strong liquidity (generally considered to be 1.0 or higher).
Cash Ratio
Home Depot Inc., cash ratio calculation (quarterly data)
| 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 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 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) | 7,895) | 14,652) | 14,139) | 8,696) | 2,133) | 2,193) | 2,547) | 1,882) | ||||||||
| Total cash assets | 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) | 7,895) | 14,652) | 14,139) | 8,696) | 2,133) | 2,193) | 2,547) | 1,882) | ||||||||
| Current liabilities | 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) | 23,166) | 25,395) | 24,199) | 23,348) | 18,375) | 19,565) | 18,798) | 19,673) | ||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||||||
| Cash ratio1 | 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 | 0.34 | 0.58 | 0.58 | 0.37 | 0.12 | 0.11 | 0.14 | 0.10 | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 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 | 0.68 | 0.64 | 0.76 | 0.63 | 0.67 | 0.67 | 0.76 | 0.62 | ||||||||
| Lowe’s Cos. Inc. | 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 | 0.28 | 0.52 | 0.60 | 0.34 | 0.06 | 0.06 | 0.13 | 0.18 | ||||||||
| TJX Cos. Inc. | — | 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 | 0.97 | 0.90 | 0.87 | 0.92 | 0.45 | 0.27 | 0.33 | 0.34 | ||||||||
Based on: 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), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05).
1 Q2 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,804 ÷ 30,846 = 0.09
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's liquidity and short-term financial position over the observed periods.
- Total Cash Assets
- The total cash assets show significant fluctuations throughout the timeline. Initially, cash assets are relatively stable at around 2,000 million USD, then markedly increase to a peak of over 14,000 million USD during mid-2020, which likely reflects a temporary accumulation of liquidity potentially for strategic initiatives or as a buffer during uncertain times. Following this peak, cash assets generally decline, demonstrating volatility and falling back to levels closer to or below 3,000 million USD in the most recent periods. This pattern suggests cyclical liquidity adjustments or cash deployment after a period of accumulation.
- Current Liabilities
- Current liabilities exhibit a gradual upward trend with some variability. Starting near 19,000 million USD, they increase to surpass 30,000 million USD in several of the latest quarters, indicating an overall rise in short-term obligations. Despite fluctuations, the increase in liabilities implies either growth in operational activities leading to higher payables or a greater reliance on short-term funding. This rising trend in current liabilities may impact liquidity ratios if cash and equivalents do not increase proportionally.
- Cash Ratio
- The cash ratio, an indicator of immediate liquidity, shows a cyclical pattern consistent with the observed movements in cash assets. The ratio begins low, near 0.1, rises sharply to a range between 0.34 and 0.58 in mid-2020, mirroring the cash asset peak, then declines to very low levels between 0.04 and 0.1 in subsequent quarters. The low cash ratio in recent periods indicates that the company holds relatively less cash against its current liabilities, which could suggest tighter liquidity conditions or strategic use of cash for other investments or obligations.
In summary, the company's liquidity profile experienced a period of strong cash accumulation in 2020, which was not sustained. Current liabilities increased over time, leading to generally low cash ratios in recent periods and indicating more constrained immediate liquidity. These patterns suggest that the company may be balancing growth or operational needs with liquidity management in a fluctuating business environment.