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: 2026-05-03), 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 a period of volatility with a distinct peak in early 2023, followed by a gradual decline toward the end of the observed period. While short-term solvency is maintained as the primary liquidity metric remains above 1.0, the narrowing margins suggest a tightening of available liquid assets relative to current obligations.
- Current Ratio Trends
- The current ratio fluctuated between a low of 1.01 in January 2022 and a peak of 1.41 in January 2023. Following this peak, a sustained downward trend is observed, with the ratio receding from 1.35 in January 2024 to 1.04 by May 2026. This indicates a reduction in the cushion of current assets available to cover current liabilities.
- Quick Ratio Analysis
- The quick ratio remained consistently low, starting at 0.37 in May 2021 and reaching a minimum of 0.18 in July 2022. A recovery peaked at 0.34 in April 2023 before stabilizing in a range between 0.22 and 0.28. The persistent gap between the current ratio and the quick ratio highlights a heavy reliance on inventory to meet short-term obligations.
- Cash Ratio Observations
- The cash ratio demonstrates the highest level of volatility and the lowest overall values. From a starting point of 0.24 in May 2021, the ratio frequently dropped to levels between 0.04 and 0.06, specifically in July 2022, April 2023, and throughout much of 2025 and 2026. This suggests a lean approach to cash holdings relative to immediate liabilities.
- Comparative Liquidity Insight
- A comparative analysis of the three ratios reveals that liquidity is heavily concentrated in non-cash current assets, primarily inventory. The significant divergence between the current ratio (ending at 1.04) and the quick ratio (ending at 0.23) confirms that the company's short-term financial flexibility is contingent upon the efficient conversion of inventory into cash.
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Current Ratio
Home Depot Inc., current ratio calculation (quarterly data)
| 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 | 37,172) | 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 | 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 | 1.04 | 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. | — | — | — | — | 1.18 | 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. | 1.09 | 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. | 1.14 | 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: 2026-05-03), 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 Q1 2027 Calculation
Current ratio = Current assets ÷ Current liabilities
= 37,172 ÷ 35,580 = 1.04
2 Click competitor name to see calculations.
Analysis of the liquidity position reveals a cyclical trend in the current ratio, characterized by a period of significant strengthening followed by a gradual normalization. The current ratio remained above 1.00 throughout the entire analyzed period, indicating a consistent ability to cover short-term obligations with short-term assets.
- Current Ratio Fluctuations
- The current ratio exhibited a notable upward trajectory beginning in mid-2022, reaching a peak of 1.41 in January 2023. This peak represented a period of heightened liquidity. However, starting in April 2023, a downward trend is observed, with the ratio gradually declining to 1.04 by May 2026. This movement suggests a shift from a conservative liquidity cushion back toward a leaner operational baseline.
- Current Asset Trajectory
- Current assets demonstrated a general long-term increase, rising from US$ 30,672 million in May 2021 to US$ 37,172 million by May 2026. While quarterly fluctuations occurred—such as the dip to US$ 28,262 million in August 2021—the overall trend indicates an expansion of the short-term asset base over the five-year period.
- Current Liability Dynamics
- Current liabilities displayed significant volatility. A period of contraction occurred between May 2022 and January 2024, with liabilities falling from US$ 30,387 million to a period low of US$ 22,015 million. This reduction in liabilities was a primary driver of the peak in the current ratio during 2023. Subsequently, liabilities rose sharply, reaching US$ 35,580 million by May 2026, which contributed to the compression of the liquidity ratio in the final quarters of the analysis.
- Liquidity Correlation Analysis
- The divergence between asset growth and liability growth is most evident in the most recent periods. Between January 2024 and May 2026, current liabilities increased by approximately US$ 13,565 million, while current assets increased by approximately US$ 7,397 million. This disproportionate increase in short-term obligations relative to asset growth explains the decline of the current ratio from 1.35 to 1.04 during this window.
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Quick Ratio
Home Depot Inc., quick ratio calculation (quarterly data)
| 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 | 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 | 6,624) | 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 | 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 | 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 | 0.23 | 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. | — | — | — | — | 0.66 | 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. | 0.12 | 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. | 0.48 | 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: 2026-05-03), 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 Q1 2027 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 8,225 ÷ 35,580 = 0.23
2 Click competitor name to see calculations.
The liquidity profile exhibits consistent volatility, with the quick ratio remaining significantly below 1.00 across all reported quarters. This indicates a structural reliance on inventory turnover to satisfy short-term obligations, as the most liquid assets are insufficient to cover current liabilities on a standalone basis.
- Quick Ratio Trajectory
- A downward trend is observed during the initial period, with the ratio declining from 0.37 in May 2021 to a minimum of 0.18 in July 2022. A subsequent recovery phase saw the ratio rise to a peak of 0.34 by January 2024. In the final stages of the period, the ratio stabilized within a narrower band between 0.22 and 0.28, suggesting a consistent level of liquidity constraint.
- Quick Asset Dynamics
- Total quick assets demonstrated significant fluctuation, falling from $10.27 billion in May 2021 to $4.98 billion in July 2022. Although a recovery occurred, with assets reaching $8.68 billion in August 2025, the overall asset levels remained lower than the initial 2021 peak for the majority of the timeline.
- Current Liabilities Expansion
- Current liabilities showed a general upward trend in the latter half of the analysis. After reaching a low of $22.02 billion in January 2023, liabilities grew steadily to $35.58 billion by May 2026. This expansion of short-term obligations offset gains in quick assets, contributing to the stagnation of the quick ratio in the most recent quarters.
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Cash Ratio
Home Depot Inc., cash ratio calculation (quarterly data)
| May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 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 | 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 | 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 | 0.04 | 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. | — | — | — | — | 0.66 | 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. | 0.06 | 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. | 0.43 | 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: 2026-05-03), 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 Q1 2027 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,601 ÷ 35,580 = 0.04
2 Click competitor name to see calculations.
The liquidity profile exhibits a general downward trajectory over the observed period, with the cash ratio declining from a peak of 0.24 in May 2021 to a low of 0.04 by May 2026. This progression indicates a diminishing capacity to settle immediate short-term obligations using only cash and cash equivalents.
- Cash Ratio Trends
- A significant reduction in the cash ratio is evident, characterized by periodic volatility. After an initial decline in 2021, the ratio reached a critical low of 0.05 in July 2022 and April 2023. A temporary recovery occurred between January 2024 and April 2024, where the ratio peaked at 0.18, before returning to a suppressed range between 0.04 and 0.09 throughout 2025 and 2026.
- Total Cash Assets Analysis
- Cash reserves have experienced substantial contraction and fluctuation. The highest cash position was recorded in May 2021 at 6,648 million USD. Following this, assets frequently dropped toward the 1,200 million USD range, specifically in July 2022 and April 2023. While there was a moderate increase to 4,264 million USD by April 2024, the levels remained inconsistent, ending at 1,601 million USD in May 2026.
- Current Liabilities Evolution
- Short-term obligations demonstrated a general upward trend, particularly in the latter half of the timeline. Although liabilities dipped to a low of 23,110 million USD in January 2023, they climbed steadily thereafter, reaching a peak of 35,580 million USD by May 2026. This increase in liabilities, coupled with lower cash reserves, has been the primary driver of the deteriorating cash ratio.
- Liquidity Correlation
- The divergence between rising current liabilities and stagnant or declining cash assets has resulted in a sustained compression of liquidity. The most acute pressure is observed in the final quarters of the analysis, where the cash ratio remained stagnant at 0.04, reflecting a highly lean cash position relative to the company's short-term debt obligations.
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