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: 2026-08-02), 10-Q (reporting date: 2026-05-03), 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 profile exhibits periodic fluctuations over the analyzed period, characterized by a stable current ratio but significantly lower quick and cash ratios. This pattern indicates a liquidity structure heavily dependent on inventory turnover to meet short-term obligations.
- Current Ratio
- The current ratio remained consistently above 1.0, ranging from a low of 1.01 in January 2022 to a peak of 1.41 in January 2023. A period of relative strength was observed between October 2022 and April 2024, where the ratio generally stayed above 1.25. In the subsequent periods leading to August 2026, the ratio stabilized within a tighter range of 1.04 to 1.15.
- Quick Ratio
- The quick ratio displayed a persistent gap compared to the current ratio, fluctuating between 0.18 and 0.37. A notable decline occurred between May 2021 and July 2022, reaching a minimum of 0.18. While there was a recovery peaking at 0.34 in April 2023, the ratio largely remained below 0.30 for the remainder of the period, ending at 0.26 in August 2026.
- Cash Ratio
- The cash ratio exhibited the highest volatility and the lowest overall values, with a range between 0.04 and 0.24. Significant contractions were observed in July 2022 (0.05) and again between February 2026 and May 2026 (0.04). Temporary spikes occurred in early 2021 and early 2023, but the ratio frequently trended toward a floor of 0.04 to 0.06.
The divergence between the current ratio and the quick ratio suggests that inventory comprises the vast majority of current assets. Furthermore, the consistently low cash ratio indicates a lean approach to cash holdings, suggesting that the organization relies on operational cash flow and inventory liquidation rather than cash reserves to maintain short-term solvency.
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Current Ratio
Home Depot Inc., current ratio calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | 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 | 37,720) | 37,172) | 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 | 34,988) | 35,580) | 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 | 1.08 | 1.04 | 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. | — | — | — | — | 1.03 | 1.18 | 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. | 1.10 | 1.09 | 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. | 1.15 | 1.14 | 1.14 | 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-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 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 Q2 2027 Calculation
Current ratio = Current assets ÷ Current liabilities
= 37,720 ÷ 34,988 = 1.08
2 Click competitor name to see calculations.
The liquidity position remains stable throughout the observed period, with the current ratio consistently maintaining a value above 1.00. This indicates a sustained capacity to cover short-term obligations with current assets, although the margin of liquidity fluctuates across different phases.
- Current Ratio Volatility and Trends
- The current ratio experienced three distinct phases. From May 2021 to January 2022, the ratio remained relatively tight, fluctuating between 1.01 and 1.13. A significant period of liquidity expansion occurred between October 2022 and January 2024, during which the ratio peaked at 1.41 in January 2023. Subsequently, from April 2024 through August 2026, the ratio returned to a more compressed range, fluctuating between 1.04 and 1.15.
- Analysis of Current Assets
- Current assets exhibit a general upward trajectory over the long term. Starting at 30,672 million US$ in May 2021, assets reached a peak of 37,720 million US$ by August 2026. Despite some quarterly volatility, the overall growth in assets suggests an expansion of the company's short-term resource base.
- Analysis of Current Liabilities
- Current liabilities demonstrate more pronounced volatility than assets. A notable reduction in liabilities occurred between October 2022 and January 2024, hitting a period low of 22,015 million US$ in January 2024. This decline was the primary driver behind the peak in the current ratio. However, liabilities increased sharply thereafter, rising to a peak of 34,367 million US$ by November 2025, which exerted downward pressure on the liquidity ratio in the final stages of the period.
- Liquidity Correlation
- The correlation between assets and liabilities indicates that the peak liquidity observed in 2023 was driven more by the aggressive reduction of short-term debt and obligations than by a surge in assets. In the 2024-2026 period, the growth in current assets was offset by a proportional increase in current liabilities, resulting in a stabilization of the current ratio near the 1.04 to 1.15 range.
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Quick Ratio
Home Depot Inc., quick ratio calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | 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 | 2,085) | 1,601) | 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 | 6,963) | 6,624) | 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 | 9,048) | 8,225) | 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 | 34,988) | 35,580) | 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 | 0.26 | 0.23 | 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. | — | — | — | — | 0.51 | 0.66 | 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. | 0.22 | 0.12 | 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. | 0.50 | 0.48 | 0.51 | 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-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 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 Q2 2027 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,048 ÷ 34,988 = 0.26
2 Click competitor name to see calculations.
The analysis of liquidity reveals a consistent trend where quick assets remain significantly lower than current liabilities, resulting in a quick ratio that stays below 1.0 throughout the observed period. This indicates an operational reliance on inventory turnover or external financing to meet short-term obligations, as the most liquid assets are insufficient to cover current liabilities on a standalone basis.
- Initial Decline and Liquidity Minimums
- A downward trend in liquidity is observed from May 2021 through July 2022. The quick ratio declined from 0.37 to a period low of 0.18. This contraction was primarily driven by a sharp reduction in total quick assets, which fell from $10,272 million to $4,984 million, while current liabilities remained relatively stable, fluctuating between $26,666 million and $30,387 million.
- Recovery and Mid-term Stabilization
- A recovery phase followed the mid-2022 low, with the quick ratio gradually improving to reach a peak of 0.34 by April 2024. This improvement was supported by a strategic increase in quick assets, which climbed back to $8,369 million by January 2024, and a temporary reduction in current liabilities, which dipped to $22,015 million in October 2022.
- Recent Trends and Asset-Liability Correlation
- Between July 2024 and August 2026, the quick ratio exhibited moderate volatility, oscillating between 0.22 and 0.28. While total quick assets showed a general upward trajectory, reaching $9,048 million by August 2026, the liquidity ratio was constrained by a simultaneous increase in current liabilities, which rose to $34,988 million. The correlation suggests that asset growth was offset by an increase in short-term obligations, preventing a significant improvement in the overall liquidity position.
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Cash Ratio
Home Depot Inc., cash ratio calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 2,085) | 1,601) | 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 | 2,085) | 1,601) | 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 | 34,988) | 35,580) | 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 | 0.06 | 0.04 | 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. | — | — | — | — | 0.51 | 0.66 | 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. | 0.16 | 0.06 | 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. | 0.45 | 0.43 | 0.47 | 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-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 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 Q2 2027 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,085 ÷ 34,988 = 0.06
2 Click competitor name to see calculations.
The analysis of liquidity metrics reveals a significant long-term decline in the cash ratio, which transitioned from a peak of 0.24 in May 2021 to a stabilized low range between 0.04 and 0.06 by mid-2026. This downward trajectory indicates a reduction in the proportion of immediate cash available to cover short-term obligations.
- Cash Ratio Volatility and Trends
- The cash ratio exhibited substantial fluctuations between 2021 and 2024. After an initial decline to 0.05 in July 2022, a recovery phase occurred, peaking at 0.18 in April 2023. However, this recovery was temporary, as the ratio plummeted again to 0.05 by October 2024 and remained consistently depressed, reaching a low of 0.04 in February and May 2026.
- Total Cash Asset Fluctuations
- Cash holdings demonstrated high volatility throughout the observed period. The highest cash position was recorded in May 2021 at 6,648 million US$. Subsequently, assets frequently fluctuated between 1,200 million US$ and 4,300 million US$. By the final quarters of 2025 and 2026, cash assets remained relatively low, generally oscillating between 1,389 million US$ and 2,085 million US$.
- Current Liabilities Expansion
- Current liabilities showed a general upward trend over the long term. While liabilities dipped to a low of 22,015 million US$ in January 2023, they climbed steadily thereafter, exceeding 30,000 million US$ in 2025 and peaking at 35,580 million US$ in February 2026. This expansion of short-term obligations has acted as a primary driver in suppressing the cash ratio.
- Liquidity Position Assessment
- The persistent low cash ratio in the final two years of the data suggests a lean liquidity strategy. The widening gap between increasing current liabilities and stagnant or declining cash assets implies a heavier reliance on other current assets or continuous operational cash flow to meet immediate financial commitments rather than maintaining high cash reserves.
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