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).
- Current Ratio
-
The current ratio exhibits moderate fluctuations throughout the periods. Initially, it increased from 1.17 to a peak of 1.41 between May 2020 and January 2023, indicating an improvement in the company’s short-term liquidity and ability to cover current liabilities with current assets. After this peak, the ratio showed a slight downward trend, declining to 1.09 by August 2025. Despite this decrease, the ratio remains above 1, suggesting continued adequate liquidity, although the declining trend may warrant closer monitoring of working capital management in later periods.
- Quick Ratio
-
The quick ratio demonstrates a significant decline over the full time frame. Starting from 0.48 in May 2020, it rises initially and reaches a high of 0.69 by August 2020, then generally trends downward with some volatility. From early 2021 through mid-2025, it fluctuates mostly between 0.2 and 0.34, ending at 0.28 in August 2025. This lower level compared to the start indicates reduced immediate liquidity available without relying on inventory, pointing to potential challenges in covering short-term obligations quickly as inventory levels influence liquidity.
- Cash Ratio
-
The cash ratio reveals a pronounced decline over the observed periods. Beginning at 0.37 in May 2020, it initially increased to 0.58 by August and November 2020, but then steadily declined to a low of 0.04 in August 2025. This ratio remains significantly lower than the current and quick ratios, signaling that cash and cash equivalents constitute a small portion of current liabilities coverage. The persistent low cash ratio suggests limited highly liquid reserves, which may raise concerns regarding immediate cash availability for sudden financial obligations.
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | |||||||
| 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) | |||||||
| 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 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | 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 | 1.14 | 1.12 | 1.20 | 1.05 | |||||||
| 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 | |||||||
| TJX Cos. Inc. | 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 | 1.46 | 1.41 | 1.51 | 2.20 | |||||||
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).
1 Q2 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 35,391 ÷ 30,846 = 1.15
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit a fluctuating trend over the observed periods. Initially, there is an upward movement from approximately $27.3 billion to a peak of around $34.5 billion between May 2020 and November 2020. This peak is followed by a decline, reaching a lower level near $28.5 billion by January 2021. Subsequently, the current assets show a cyclical pattern with moderate increases and decreases, stabilizing around the $32 billion to $34 billion range in the later periods through mid-2025. This indicates that the company has maintained a relatively stable liquidity base with some variability that may correlate with seasonal or operational factors.
- Current Liabilities
- Current liabilities demonstrate a gradually increasing trend with periodic fluctuations. Starting at about $23.3 billion in May 2020, liabilities rise and fall but generally move upward to reach over $31 billion by mid-2025. Notably, there are peaks around May 2021 and again towards the end of the series, suggesting increased obligations or payables during these intervals. The rising trend, despite some volatility, implies a growing level of short-term financial commitments.
- Current Ratio
- The current ratio exhibits variability around the benchmark value of 1, indicating changes in liquidity position over time. It starts moderately strong at 1.17 in May 2020, improves to a high of approximately 1.41 by January 2023, showing enhanced short-term financial health, then gradually declines to values near 1.09 by August 2025. Throughout the periods, the ratio remains mostly above 1, demonstrating that current assets consistently exceed current liabilities, though the narrowing gap towards 2025 may warrant attention to liquidity risks.
- Overall Insights
- The data reveals that the company has maintained adequate liquidity across the analyzed quarters, with current assets generally exceeding current liabilities. Despite some periods of decline in current assets and rises in current liabilities, the current ratio has mostly stayed above 1, reflecting a capacity to cover short-term obligations. The peak in the current ratio in early 2023 could suggest operational or financial improvements during that time. However, the slow downward trend in the current ratio towards the latest periods indicates a potential tightening of liquidity, which should be monitored closely to ensure ongoing financial stability.
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | |||||||
| 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) | |||||||
| 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) | |||||||
| 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) | |||||||
| 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 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | 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 | 0.68 | 0.64 | 0.76 | 0.63 | |||||||
| 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 | |||||||
| TJX Cos. Inc. | 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 | 1.01 | 0.93 | 0.92 | 0.96 | |||||||
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).
1 Q2 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 8,682 ÷ 30,846 = 0.28
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in liquidity metrics over the reported periods.
- Total Quick Assets
- The total quick assets exhibit a fluctuating pattern from May 2020 through August 2025. Initially, there was an increase, reaching a peak in late 2020, followed by a substantial decline through early 2022. Subsequently, the quick assets showed moderate recovery and intermittent fluctuations, with no consistent upward or downward trajectory in the latter periods. This indicates variability in liquid asset availability over time.
- Current Liabilities
- The current liabilities trend displays a general upward movement from May 2020 to mid-2024, peaking around this period. Although there are periodic declines, the overall direction remains an increase in short-term obligations. This suggests increasing pressure on the company’s liquidity and financial obligations within these quarters.
- Quick Ratio
- The quick ratio, a key liquidity indicator derived from the relationship between quick assets and current liabilities, consistently remains below 1.0 throughout the periods. Starting at 0.48 in early 2020, it briefly rose near 0.69 before experiencing a continuous decline to a low of around 0.18 by mid-2022. Afterwards, it stabilizes with minor fluctuations ranging approximately between 0.22 and 0.34. Overall, the low quick ratio levels reflect a persistent challenge in covering current liabilities with liquid assets, implying liquidity constraints.
- Insight
- The juxtaposition of increasing current liabilities against generally volatile yet insufficient quick assets culminates in relatively low quick ratios. This scenario may point to the necessity for enhanced short-term financial management or refinancing strategies. The company faces liquidity risk given these ratios consistently remain below the comfortable benchmark of 1.0, potentially affecting its ability to meet immediate obligations without liquidating inventory or securing additional financing.
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | |||||||
| 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) | |||||||
| 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) | |||||||
| 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 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | 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 | 0.68 | 0.64 | 0.76 | 0.63 | |||||||
| 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 | |||||||
| TJX Cos. Inc. | 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 | 0.97 | 0.90 | 0.87 | 0.92 | |||||||
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).
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 financial data reveals significant volatility in the company's liquidity position over the observed periods.
- Total Cash Assets
- The total cash assets demonstrate a fluctuating pattern with an initial peak followed by general decline and intermittent recoveries. Notably, cash assets reached a high point around August and November 2020, followed by a pronounced decline into early 2022. Subsequent data indicates periods of modest increases interspersed with declines, with cash holdings in recent periods displaying relatively lower values compared to the earlier peak.
- Current Liabilities
- Current liabilities exhibit a generally upward trend with periodic fluctuations. Starting from approximately 23 billion US dollars, liabilities increased steadily over the quarters, peaking above 30 billion US dollars in mid to late 2025. This rising trend indicates an expansion in short-term obligations, suggesting increasing operational scale or higher short-term debt levels.
- Cash Ratio
- The cash ratio, which measures liquidity by comparing cash assets to current liabilities, shows a decreasing trend over time, indicating tightening liquidity. The ratio peaked near 0.58 during mid to late 2020 but declined sharply thereafter to very low values around 0.04 to 0.09 in the most recent periods. This suggests that despite fluctuations in cash holdings, current liabilities have grown disproportionately, reducing the buffer provided by cash assets relative to short-term liabilities.
Overall, the data suggests the company has faced progressively tighter liquidity conditions over the periods analyzed, with cash reserves not keeping pace with the growth in current liabilities. Such a trend may necessitate careful liquidity management to maintain operational stability and meet short-term obligations effectively.