Home Depot Inc. (HD)
Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Beginner level
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Home Depot Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28), 10-K (filing date: 2014-03-27), 10-Q (filing date: 2013-11-27), 10-Q (filing date: 2013-08-28), 10-Q (filing date: 2013-05-29).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Home Depot Inc.’s inventory turnover ratio improved from Q1 2020 to Q2 2020 but then deteriorated significantly from Q2 2020 to Q3 2020. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Home Depot Inc.’s receivables turnover ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Home Depot Inc.’s payables turnover ratio increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Home Depot Inc.’s working capital turnover ratio deteriorated from Q1 2020 to Q2 2020 but then slightly improved from Q2 2020 to Q3 2020. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Home Depot Inc.’s operating cycle improved from Q1 2020 to Q2 2020 but then slightly deteriorated from Q2 2020 to Q3 2020 not reaching Q1 2020 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Home Depot Inc.’s number of days of payables outstanding decreased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |
Inventory Turnover
Home Depot Inc., inventory turnover calculation (quarterly data)
| Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | Jan 28, 2018 | Oct 29, 2017 | Jul 30, 2017 | Apr 30, 2017 | Jan 29, 2017 | Oct 30, 2016 | Jul 31, 2016 | May 1, 2016 | Jan 31, 2016 | Nov 1, 2015 | Aug 2, 2015 | May 3, 2015 | Feb 1, 2015 | Nov 2, 2014 | Aug 3, 2014 | May 4, 2014 | Feb 2, 2014 | Nov 3, 2013 | Aug 4, 2013 | May 5, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cost of sales | 17,836 | 20,407 | 17,364 | 17,464 | 17,151 | 20,098 | 16,330 | 15,790 | 16,378 | 18,647 | 15,733 | 14,654 | 15,112 | 17,545 | 14,971 | 13,824 | 14,254 | 16,464 | 13,712 | 12,439 | 13,331 | 15,650 | 12,802 | 11,504 | 12,672 | 14,801 | 12,445 | |
| Merchandise inventories | 15,711 | 14,741 | 15,495 | 13,925 | 14,754 | 14,044 | 14,432 | 12,748 | 13,419 | 12,868 | 13,609 | 12,549 | 13,241 | 12,323 | 13,219 | 11,809 | 12,495 | 11,859 | 12,306 | 11,079 | 12,008 | 11,665 | 12,343 | 11,057 | 11,348 | 11,086 | 11,825 | |
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Inventory turnover1 | 4.65 | 4.91 | 4.65 | 5.10 | 4.70 | 4.88 | 4.65 | 5.22 | 4.87 | 4.98 | 4.63 | 4.96 | 4.64 | 4.92 | 4.50 | 4.93 | 4.55 | 4.72 | 4.48 | 4.89 | 4.44 | 4.51 | 4.20 | 4.65 | — | — | — | |
| Benchmarks | ||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 8.33 | 7.97 | 8.66 | 8.10 | 8.38 | 8.59 | 8.69 | 6.98 | 7.47 | 8.35 | 8.66 | 7.70 | 7.82 | 8.25 | 7.84 | 7.00 | 7.57 | 8.82 | 8.70 | 7.56 | — | — | — | |
| Costco Wholesale Corp. | — | — | — | 11.66 | 11.52 | 11.28 | 10.34 | 11.16 | 11.40 | 11.06 | 10.27 | 11.38 | 10.97 | 11.02 | 9.66 | 11.47 | 11.46 | 11.44 | 9.76 | 11.35 | 11.39 | 11.79 | 10.37 | 11.64 | — | — | — | |
| Lowe’s Cos. Inc. | 3.57 | 3.58 | 3.26 | 3.85 | 3.88 | 3.95 | 3.47 | 3.97 | 3.65 | 3.91 | 3.57 | 4.07 | 3.72 | 3.76 | 3.55 | 4.07 | 3.65 | 3.88 | 3.50 | 4.11 | 3.70 | 3.82 | 3.33 | 3.83 | — | — | — | |
| Target Corp. | 4.80 | 5.95 | 5.95 | 5.61 | 4.30 | 5.75 | 5.97 | 5.91 | 4.66 | 5.95 | 6.11 | 5.88 | 4.91 | 5.83 | 6.06 | 6.05 | 5.01 | 6.25 | 5.97 | 5.83 | 5.17 | 6.48 | 6.50 | 5.84 | — | — | — | |
| TJX Cos. Inc. | 4.64 | 5.64 | 5.59 | 6.08 | 4.99 | 5.96 | 5.98 | 6.09 | 5.17 | 6.24 | 6.35 | 6.47 | 5.28 | 5.90 | 5.76 | 5.96 | 4.86 | 5.68 | 5.95 | 6.46 | 5.17 | 5.96 | 6.19 | 6.61 | — | — | — | |
| Walmart Inc. | 7.60 | 8.81 | 8.64 | 8.70 | 7.60 | 9.09 | 8.72 | 8.53 | 7.35 | 8.39 | 8.36 | 8.39 | 7.24 | 8.30 | 8.11 | 8.12 | 7.16 | 8.11 | 7.88 | 8.09 | 7.07 | 7.95 | 7.92 | 7.98 | — | — | — | |
Based on: 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28), 10-K (filing date: 2014-03-27), 10-Q (filing date: 2013-11-27), 10-Q (filing date: 2013-08-28), 10-Q (filing date: 2013-05-29).
1 Q3 2020 Calculation
Inventory turnover
= (Cost of salesQ3 2020
+ Cost of salesQ2 2020
+ Cost of salesQ1 2020
+ Cost of salesQ4 2019)
÷ Merchandise inventories
= (17,836 + 20,407 + 17,364 + 17,464)
÷ 15,711 = 4.65
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Home Depot Inc.’s inventory turnover ratio improved from Q1 2020 to Q2 2020 but then deteriorated significantly from Q2 2020 to Q3 2020. |
Receivables Turnover
Home Depot Inc., receivables turnover calculation (quarterly data)
| Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | Jan 28, 2018 | Oct 29, 2017 | Jul 30, 2017 | Apr 30, 2017 | Jan 29, 2017 | Oct 30, 2016 | Jul 31, 2016 | May 1, 2016 | Jan 31, 2016 | Nov 1, 2015 | Aug 2, 2015 | May 3, 2015 | Feb 1, 2015 | Nov 2, 2014 | Aug 3, 2014 | May 4, 2014 | Feb 2, 2014 | Nov 3, 2013 | Aug 4, 2013 | May 5, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net sales | 27,223 | 30,839 | 26,381 | 26,491 | 26,302 | 30,463 | 24,947 | 23,883 | 25,026 | 28,108 | 23,887 | 22,207 | 23,154 | 26,472 | 22,762 | 20,980 | 21,819 | 24,829 | 20,891 | 19,162 | 20,516 | 23,811 | 19,687 | 17,696 | 19,470 | 22,522 | 19,124 | |
| Receivables, net | 2,231 | 2,274 | 2,317 | 1,936 | 2,171 | 2,164 | 2,296 | 1,952 | 2,166 | 2,187 | 2,164 | 2,029 | 1,995 | 1,995 | 1,989 | 1,890 | 1,942 | 1,696 | 1,839 | 1,484 | 1,611 | 1,637 | 1,831 | 1,398 | 1,606 | 1,542 | 1,658 | |
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Receivables turnover1 | 49.72 | 48.38 | 47.32 | 55.89 | 48.64 | 48.21 | 44.41 | 51.69 | 45.81 | 44.52 | 44.23 | 46.62 | 46.80 | 46.13 | 45.44 | 46.84 | 44.65 | 50.35 | 45.88 | 56.05 | 50.72 | 49.28 | 43.35 | 56.37 | — | — | — | |
| Benchmarks | ||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 97.30 | 85.87 | 72.17 | 78.90 | 82.94 | 85.61 | 66.45 | 83.27 | 88.11 | 82.45 | 74.19 | 78.05 | 92.71 | 88.72 | 78.94 | 83.89 | 92.86 | 94.92 | 87.91 | 89.77 | 96.00 | — | — | — | |
| eBay Inc. | — | — | — | — | 15.20 | 13.62 | 15.10 | 15.09 | 13.77 | 13.75 | 14.54 | 13.77 | 14.93 | 14.79 | 15.30 | 15.17 | 14.23 | 13.99 | 14.47 | 13.88 | 18.81 | 20.31 | 22.33 | 22.46 | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |
| TJX Cos. Inc. | 91.76 | 106.12 | 100.60 | 112.54 | 92.44 | 105.97 | 99.83 | 109.62 | 99.38 | 111.01 | 105.37 | 128.21 | 106.64 | 111.30 | 112.28 | 129.98 | 110.59 | 114.58 | 111.79 | 135.99 | 109.54 | 116.26 | 108.39 | 130.53 | — | — | — | |
| Walmart Inc. | 92.13 | 95.50 | 95.78 | 81.22 | 87.77 | 101.15 | 109.65 | 88.31 | 83.61 | 89.97 | 91.94 | 82.49 | 89.87 | 90.93 | 92.46 | 85.10 | 95.89 | 91.39 | 82.93 | 71.15 | 78.86 | 77.64 | 77.74 | 70.85 | — | — | — | |
Based on: 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28), 10-K (filing date: 2014-03-27), 10-Q (filing date: 2013-11-27), 10-Q (filing date: 2013-08-28), 10-Q (filing date: 2013-05-29).
1 Q3 2020 Calculation
Receivables turnover
= (Net salesQ3 2020
+ Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019)
÷ Receivables, net
= (27,223 + 30,839 + 26,381 + 26,491)
÷ 2,231 = 49.72
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Home Depot Inc.’s receivables turnover ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020. |
Payables Turnover
Home Depot Inc., payables turnover calculation (quarterly data)
| Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | Jan 28, 2018 | Oct 29, 2017 | Jul 30, 2017 | Apr 30, 2017 | Jan 29, 2017 | Oct 30, 2016 | Jul 31, 2016 | May 1, 2016 | Jan 31, 2016 | Nov 1, 2015 | Aug 2, 2015 | May 3, 2015 | Feb 1, 2015 | Nov 2, 2014 | Aug 3, 2014 | May 4, 2014 | Feb 2, 2014 | Nov 3, 2013 | Aug 4, 2013 | May 5, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cost of sales | 17,836 | 20,407 | 17,364 | 17,464 | 17,151 | 20,098 | 16,330 | 15,790 | 16,378 | 18,647 | 15,733 | 14,654 | 15,112 | 17,545 | 14,971 | 13,824 | 14,254 | 16,464 | 13,712 | 12,439 | 13,331 | 15,650 | 12,802 | 11,504 | 12,672 | 14,801 | 12,445 | |
| Accounts payable | 9,240 | 9,494 | 10,311 | 7,755 | 9,054 | 9,407 | 9,726 | 7,244 | 8,570 | 8,541 | 9,138 | 7,000 | 8,054 | 8,273 | 8,711 | 6,565 | 7,236 | 7,495 | 8,070 | 5,807 | 6,897 | 7,165 | 7,739 | 5,797 | 6,366 | 6,585 | 7,384 | |
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Payables turnover1 | 7.91 | 7.62 | 6.99 | 9.16 | 7.66 | 7.29 | 6.90 | 9.19 | 7.63 | 7.51 | 6.90 | 8.90 | 7.63 | 7.32 | 6.83 | 8.87 | 7.86 | 7.46 | 6.83 | 9.34 | 7.73 | 7.35 | 6.69 | 8.87 | — | — | — | |
| Benchmarks | ||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 4.37 | 4.11 | 4.47 | 3.64 | 4.30 | 4.61 | 4.78 | 3.23 | 3.93 | 4.48 | 4.86 | 3.49 | 4.45 | 4.91 | 5.01 | 3.51 | 4.71 | 5.31 | 5.38 | 3.81 | — | — | — | |
| Costco Wholesale Corp. | — | — | — | 11.38 | 11.49 | 11.96 | 9.61 | 10.96 | 11.32 | 11.73 | 9.61 | 11.64 | 11.34 | 11.98 | 9.41 | 13.52 | 11.59 | 12.39 | 9.76 | 11.22 | 11.36 | 12.15 | 10.22 | 11.60 | — | — | — | |
| eBay Inc. | — | — | — | — | 8.36 | 8.11 | 9.66 | 8.33 | 10.46 | 9.10 | 8.99 | 6.73 | 8.35 | 7.44 | 6.91 | 7.09 | 7.05 | 6.24 | 6.68 | 5.07 | 16.45 | 10.42 | 12.19 | 14.29 | — | — | — | |
| Lowe’s Cos. Inc. | 5.54 | 5.18 | 4.26 | 5.85 | 5.16 | 5.22 | 4.53 | 6.86 | 5.09 | 5.15 | 4.41 | 6.40 | 5.21 | 5.18 | 4.45 | 6.84 | 5.18 | 5.28 | 4.63 | 7.16 | 5.59 | 5.75 | 4.97 | 6.98 | — | — | — | |
| Netflix Inc. | — | — | — | — | 26.36 | 25.19 | 23.98 | 17.70 | 21.16 | 19.64 | 19.04 | 21.30 | 23.91 | 24.68 | 21.43 | 19.27 | 19.68 | 21.90 | 21.19 | 18.11 | 20.81 | 19.54 | 20.62 | 18.62 | — | — | — | |
| Target Corp. | 4.86 | 5.93 | 6.45 | 5.46 | 4.45 | 5.75 | 6.35 | 5.89 | 4.94 | 6.48 | 7.47 | 6.74 | 5.98 | 7.39 | 8.02 | 7.01 | 5.84 | 7.44 | 7.57 | 6.61 | 5.82 | 7.36 | 7.88 | 6.66 | — | — | — | |
| TJX Cos. Inc. | 8.45 | 11.00 | 10.97 | 10.53 | 8.28 | 9.99 | 10.42 | 10.25 | 8.18 | 10.28 | 10.91 | 10.56 | 8.62 | 10.11 | 10.52 | 10.00 | 8.01 | 9.43 | 9.76 | 10.35 | 8.01 | 9.40 | 10.15 | 11.07 | — | — | — | |
| Walmart Inc. | 7.87 | 8.48 | 8.57 | 8.19 | 7.70 | 8.84 | 8.46 | 8.10 | 7.74 | 8.60 | 8.76 | 8.72 | 8.39 | 9.03 | 9.50 | 9.38 | 8.95 | 9.80 | 9.80 | 9.50 | 9.18 | 9.81 | 9.87 | 9.57 | — | — | — | |
Based on: 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28), 10-K (filing date: 2014-03-27), 10-Q (filing date: 2013-11-27), 10-Q (filing date: 2013-08-28), 10-Q (filing date: 2013-05-29).
1 Q3 2020 Calculation
Payables turnover
= (Cost of salesQ3 2020
+ Cost of salesQ2 2020
+ Cost of salesQ1 2020
+ Cost of salesQ4 2019)
÷ Accounts payable
= (17,836 + 20,407 + 17,364 + 17,464)
÷ 9,240 = 7.91
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Home Depot Inc.’s payables turnover ratio increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020. |
Working Capital Turnover
Home Depot Inc., working capital turnover calculation (quarterly data)
| Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | Jan 28, 2018 | Oct 29, 2017 | Jul 30, 2017 | Apr 30, 2017 | Jan 29, 2017 | Oct 30, 2016 | Jul 31, 2016 | May 1, 2016 | Jan 31, 2016 | Nov 1, 2015 | Aug 2, 2015 | May 3, 2015 | Feb 1, 2015 | Nov 2, 2014 | Aug 3, 2014 | May 4, 2014 | Feb 2, 2014 | Nov 3, 2013 | Aug 4, 2013 | May 5, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 21,174 | 20,699 | 20,553 | 18,529 | 19,809 | 20,802 | 21,214 | 18,933 | 19,682 | 20,511 | 19,896 | 17,724 | 19,348 | 18,941 | 19,010 | 16,993 | 18,606 | 19,531 | 17,995 | 15,302 | 16,749 | 18,491 | 17,515 | 15,279 | 18,598 | 16,895 | 18,620 | |
| Less: Current liabilities | 19,565 | 18,798 | 19,673 | 16,716 | 18,196 | 18,426 | 18,133 | 16,194 | 16,002 | 15,823 | 16,438 | 14,133 | 14,431 | 14,525 | 15,149 | 12,526 | 15,976 | 16,399 | 17,005 | 11,269 | 12,260 | 12,839 | 13,265 | 10,749 | 12,529 | 12,995 | 14,018 | |
| Working capital | 1,609 | 1,901 | 880 | 1,813 | 1,613 | 2,376 | 3,081 | 2,739 | 3,680 | 4,688 | 3,458 | 3,591 | 4,917 | 4,416 | 3,861 | 4,467 | 2,630 | 3,132 | 990 | 4,033 | 4,489 | 5,652 | 4,250 | 4,530 | 6,069 | 3,900 | 4,602 | |
| Net sales | 27,223 | 30,839 | 26,381 | 26,491 | 26,302 | 30,463 | 24,947 | 23,883 | 25,026 | 28,108 | 23,887 | 22,207 | 23,154 | 26,472 | 22,762 | 20,980 | 21,819 | 24,829 | 20,891 | 19,162 | 20,516 | 23,811 | 19,687 | 17,696 | 19,470 | 22,522 | 19,124 | |
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Working capital turnover1 | 68.95 | 57.87 | 124.59 | 59.68 | 65.46 | 43.91 | 33.09 | 36.84 | 26.96 | 20.77 | 27.68 | 26.34 | 18.99 | 20.84 | 23.41 | 19.82 | 32.97 | 27.27 | 85.23 | 20.62 | 18.20 | 14.27 | 18.68 | 17.40 | — | — | — | |
| Benchmarks | ||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 38.37 | 35.44 | 42.11 | 34.71 | 48.44 | 56.56 | 69.39 | 76.87 | 107.01 | 308.26 | 69.18 | 69.20 | 60.63 | 45.82 | 48.76 | 41.56 | 45.89 | 38.65 | 33.50 | 27.48 | — | — | — | |
| Costco Wholesale Corp. | — | — | — | 602.22 | — | — | 294.44 | 381.36 | 483.61 | — | — | — | — | — | — | — | — | 1,194.83 | 201.79 | 149.76 | 126.31 | — | 35.71 | 34.70 | — | — | — | |
| eBay Inc. | — | — | — | — | 7.12 | 6.64 | 4.99 | 4.02 | 3.54 | 2.86 | 2.37 | 2.28 | 2.00 | 1.45 | 2.23 | 1.79 | 1.48 | 1.14 | 1.14 | 1.52 | 2.91 | 1.17 | 1.76 | 1.99 | — | — | — | |
| Lowe’s Cos. Inc. | 119.81 | 74.71 | 46.13 | — | 1,031.26 | 78.17 | 266.87 | 101.51 | 254.28 | 166.37 | 112.95 | 2,500.65 | 657.58 | 363.64 | 25.59 | 856.14 | 250.55 | — | — | 76.81 | 41.74 | 51.43 | 47.22 | 37.62 | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | — | 4.93 | 6.12 | 4.25 | 7.04 | 5.31 | 10.13 | 6.46 | 12.69 | 7.79 | 10.45 | 5.71 | 4.45 | 3.56 | 2.89 | 2.57 | 2.30 | 4.31 | — | — | — | |
| Target Corp. | — | — | — | — | — | — | — | — | — | — | — | — | 352.16 | 143.21 | 37.77 | 48.93 | 54.91 | 42.15 | 28.66 | 30.89 | 231.26 | 332.05 | — | — | — | — | — | |
| TJX Cos. Inc. | 24.08 | 23.99 | 26.62 | 13.27 | 11.75 | 11.43 | 10.67 | 10.67 | 11.76 | 11.64 | 11.36 | 11.09 | 10.72 | 12.87 | 12.25 | 13.06 | 11.57 | 11.34 | 10.77 | 10.44 | 10.34 | 10.18 | 10.96 | 10.75 | — | — | — | |
| Walmart Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |
Based on: 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28), 10-K (filing date: 2014-03-27), 10-Q (filing date: 2013-11-27), 10-Q (filing date: 2013-08-28), 10-Q (filing date: 2013-05-29).
1 Q3 2020 Calculation
Working capital turnover
= (Net salesQ3 2020
+ Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019)
÷ Working capital
= (27,223 + 30,839 + 26,381 + 26,491)
÷ 1,609 = 68.95
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Home Depot Inc.’s working capital turnover ratio deteriorated from Q1 2020 to Q2 2020 but then slightly improved from Q2 2020 to Q3 2020. |
Average Inventory Processing Period
Home Depot Inc., average inventory processing period calculation (quarterly data)
| Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | Jan 28, 2018 | Oct 29, 2017 | Jul 30, 2017 | Apr 30, 2017 | Jan 29, 2017 | Oct 30, 2016 | Jul 31, 2016 | May 1, 2016 | Jan 31, 2016 | Nov 1, 2015 | Aug 2, 2015 | May 3, 2015 | Feb 1, 2015 | Nov 2, 2014 | Aug 3, 2014 | May 4, 2014 | Feb 2, 2014 | Nov 3, 2013 | Aug 4, 2013 | May 5, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Inventory turnover | 4.65 | 4.91 | 4.65 | 5.10 | 4.70 | 4.88 | 4.65 | 5.22 | 4.87 | 4.98 | 4.63 | 4.96 | 4.64 | 4.92 | 4.50 | 4.93 | 4.55 | 4.72 | 4.48 | 4.89 | 4.44 | 4.51 | 4.20 | 4.65 | — | — | — | |
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average inventory processing period1 | 78 | 74 | 78 | 72 | 78 | 75 | 78 | 70 | 75 | 73 | 79 | 74 | 79 | 74 | 81 | 74 | 80 | 77 | 81 | 75 | 82 | 81 | 87 | 78 | — | — | — | |
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 44 | 46 | 42 | 45 | 44 | 42 | 42 | 52 | 49 | 44 | 42 | 47 | 47 | 44 | 47 | 52 | 48 | 41 | 42 | 48 | — | — | — | |
| Costco Wholesale Corp. | — | — | — | 31 | 32 | 32 | 35 | 33 | 32 | 33 | 36 | 32 | 33 | 33 | 38 | 32 | 32 | 32 | 37 | 32 | 32 | 31 | 35 | 31 | — | — | — | |
| Lowe’s Cos. Inc. | 102 | 102 | 112 | 95 | 94 | 92 | 105 | 92 | 100 | 93 | 102 | 90 | 98 | 97 | 103 | 90 | 100 | 94 | 104 | 89 | 99 | 95 | 109 | 95 | — | — | — | |
| Target Corp. | 76 | 61 | 61 | 65 | 85 | 63 | 61 | 62 | 78 | 61 | 60 | 62 | 74 | 63 | 60 | 60 | 73 | 58 | 61 | 63 | 71 | 56 | 56 | 63 | — | — | — | |
| TJX Cos. Inc. | 79 | 65 | 65 | 60 | 73 | 61 | 61 | 60 | 71 | 58 | 57 | 56 | 69 | 62 | 63 | 61 | 75 | 64 | 61 | 57 | 71 | 61 | 59 | 55 | — | — | — | |
| Walmart Inc. | 48 | 41 | 42 | 42 | 48 | 40 | 42 | 43 | 50 | 44 | 44 | 43 | 50 | 44 | 45 | 45 | 51 | 45 | 46 | 45 | 52 | 46 | 46 | 46 | — | — | — | |
Based on: 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28), 10-K (filing date: 2014-03-27), 10-Q (filing date: 2013-11-27), 10-Q (filing date: 2013-08-28), 10-Q (filing date: 2013-05-29).
1 Q3 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.65 = 78
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
Home Depot Inc., average receivable collection period calculation (quarterly data)
| Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | Jan 28, 2018 | Oct 29, 2017 | Jul 30, 2017 | Apr 30, 2017 | Jan 29, 2017 | Oct 30, 2016 | Jul 31, 2016 | May 1, 2016 | Jan 31, 2016 | Nov 1, 2015 | Aug 2, 2015 | May 3, 2015 | Feb 1, 2015 | Nov 2, 2014 | Aug 3, 2014 | May 4, 2014 | Feb 2, 2014 | Nov 3, 2013 | Aug 4, 2013 | May 5, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Receivables turnover | 49.72 | 48.38 | 47.32 | 55.89 | 48.64 | 48.21 | 44.41 | 51.69 | 45.81 | 44.52 | 44.23 | 46.62 | 46.80 | 46.13 | 45.44 | 46.84 | 44.65 | 50.35 | 45.88 | 56.05 | 50.72 | 49.28 | 43.35 | 56.37 | — | — | — | |
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average receivable collection period1 | 7 | 8 | 8 | 7 | 8 | 8 | 8 | 7 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 7 | 8 | 7 | 7 | 7 | 8 | 6 | — | — | — | |
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 4 | 4 | 5 | 5 | 4 | 4 | 5 | 4 | 4 | 4 | 5 | 5 | 4 | 4 | 5 | 4 | 4 | 4 | 4 | 4 | 4 | — | — | — | |
| eBay Inc. | — | — | — | — | 24 | 27 | 24 | 24 | 26 | 27 | 25 | 27 | 24 | 25 | 24 | 24 | 26 | 26 | 25 | 26 | 19 | 18 | 16 | 16 | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |
| TJX Cos. Inc. | 4 | 3 | 4 | 3 | 4 | 3 | 4 | 3 | 4 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | — | — | — | |
| Walmart Inc. | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 5 | 5 | 5 | 5 | 5 | — | — | — | |
Based on: 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28), 10-K (filing date: 2014-03-27), 10-Q (filing date: 2013-11-27), 10-Q (filing date: 2013-08-28), 10-Q (filing date: 2013-05-29).
1 Q3 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 49.72 = 7
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Home Depot Inc., operating cycle calculation (quarterly data)
No. days
| Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | Jan 28, 2018 | Oct 29, 2017 | Jul 30, 2017 | Apr 30, 2017 | Jan 29, 2017 | Oct 30, 2016 | Jul 31, 2016 | May 1, 2016 | Jan 31, 2016 | Nov 1, 2015 | Aug 2, 2015 | May 3, 2015 | Feb 1, 2015 | Nov 2, 2014 | Aug 3, 2014 | May 4, 2014 | Feb 2, 2014 | Nov 3, 2013 | Aug 4, 2013 | May 5, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Average inventory processing period | 78 | 74 | 78 | 72 | 78 | 75 | 78 | 70 | 75 | 73 | 79 | 74 | 79 | 74 | 81 | 74 | 80 | 77 | 81 | 75 | 82 | 81 | 87 | 78 | — | — | — | |
| Average receivable collection period | 7 | 8 | 8 | 7 | 8 | 8 | 8 | 7 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 7 | 8 | 7 | 7 | 7 | 8 | 6 | — | — | — | |
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Operating cycle1 | 85 | 82 | 86 | 79 | 86 | 83 | 86 | 77 | 83 | 81 | 87 | 82 | 87 | 82 | 89 | 82 | 88 | 84 | 89 | 82 | 89 | 88 | 95 | 84 | — | — | — | |
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 35 | 36 | 37 | 40 | 37 | 36 | 38 | 40 | 36 | 37 | 38 | 43 | 36 | 36 | 37 | 41 | 36 | 36 | 35 | 39 | 35 | — | — | — | |
| TJX Cos. Inc. | 83 | 68 | 69 | 63 | 77 | 64 | 65 | 63 | 75 | 61 | 60 | 59 | 72 | 65 | 66 | 64 | 78 | 67 | 64 | 60 | 74 | 64 | 62 | 58 | — | — | — | |
| Walmart Inc. | 52 | 45 | 46 | 46 | 52 | 44 | 45 | 47 | 54 | 48 | 48 | 47 | 54 | 48 | 49 | 49 | 55 | 49 | 50 | 50 | 57 | 51 | 51 | 51 | — | — | — | |
Based on: 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28), 10-K (filing date: 2014-03-27), 10-Q (filing date: 2013-11-27), 10-Q (filing date: 2013-08-28), 10-Q (filing date: 2013-05-29).
1 Q3 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 78 + 7 = 85
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Home Depot Inc.’s operating cycle improved from Q1 2020 to Q2 2020 but then slightly deteriorated from Q2 2020 to Q3 2020 not reaching Q1 2020 level. |
Average Payables Payment Period
Home Depot Inc., average payables payment period calculation (quarterly data)
| Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | Jan 28, 2018 | Oct 29, 2017 | Jul 30, 2017 | Apr 30, 2017 | Jan 29, 2017 | Oct 30, 2016 | Jul 31, 2016 | May 1, 2016 | Jan 31, 2016 | Nov 1, 2015 | Aug 2, 2015 | May 3, 2015 | Feb 1, 2015 | Nov 2, 2014 | Aug 3, 2014 | May 4, 2014 | Feb 2, 2014 | Nov 3, 2013 | Aug 4, 2013 | May 5, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Payables turnover | 7.91 | 7.62 | 6.99 | 9.16 | 7.66 | 7.29 | 6.90 | 9.19 | 7.63 | 7.51 | 6.90 | 8.90 | 7.63 | 7.32 | 6.83 | 8.87 | 7.86 | 7.46 | 6.83 | 9.34 | 7.73 | 7.35 | 6.69 | 8.87 | — | — | — | |
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average payables payment period1 | 46 | 48 | 52 | 40 | 48 | 50 | 53 | 40 | 48 | 49 | 53 | 41 | 48 | 50 | 53 | 41 | 46 | 49 | 53 | 39 | 47 | 50 | 55 | 41 | — | — | — | |
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 84 | 89 | 82 | 100 | 85 | 79 | 76 | 113 | 93 | 81 | 75 | 105 | 82 | 74 | 73 | 104 | 78 | 69 | 68 | 96 | — | — | — | |
| Costco Wholesale Corp. | — | — | — | 32 | 32 | 31 | 38 | 33 | 32 | 31 | 38 | 31 | 32 | 30 | 39 | 27 | 31 | 29 | 37 | 33 | 32 | 30 | 36 | 31 | — | — | — | |
| eBay Inc. | — | — | — | — | 44 | 45 | 38 | 44 | 35 | 40 | 41 | 54 | 44 | 49 | 53 | 51 | 52 | 59 | 55 | 72 | 22 | 35 | 30 | 26 | — | — | — | |
| Lowe’s Cos. Inc. | 66 | 70 | 86 | 62 | 71 | 70 | 81 | 53 | 72 | 71 | 83 | 57 | 70 | 70 | 82 | 53 | 70 | 69 | 79 | 51 | 65 | 63 | 73 | 52 | — | — | — | |
| Netflix Inc. | — | — | — | — | 14 | 14 | 15 | 21 | 17 | 19 | 19 | 17 | 15 | 15 | 17 | 19 | 19 | 17 | 17 | 20 | 18 | 19 | 18 | 20 | — | — | — | |
| Target Corp. | 75 | 62 | 57 | 67 | 82 | 63 | 57 | 62 | 74 | 56 | 49 | 54 | 61 | 49 | 45 | 52 | 63 | 49 | 48 | 55 | 63 | 50 | 46 | 55 | — | — | — | |
| TJX Cos. Inc. | 43 | 33 | 33 | 35 | 44 | 37 | 35 | 36 | 45 | 35 | 33 | 35 | 42 | 36 | 35 | 36 | 46 | 39 | 37 | 35 | 46 | 39 | 36 | 33 | — | — | — | |
| Walmart Inc. | 46 | 43 | 43 | 45 | 47 | 41 | 43 | 45 | 47 | 42 | 42 | 42 | 44 | 40 | 38 | 39 | 41 | 37 | 37 | 38 | 40 | 37 | 37 | 38 | — | — | — | |
Based on: 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28), 10-K (filing date: 2014-03-27), 10-Q (filing date: 2013-11-27), 10-Q (filing date: 2013-08-28), 10-Q (filing date: 2013-05-29).
1 Q3 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.91 = 46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Home Depot Inc.’s number of days of payables outstanding decreased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020. |
Cash Conversion Cycle
Home Depot Inc., cash conversion cycle calculation (quarterly data)
No. days
| Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | Jan 28, 2018 | Oct 29, 2017 | Jul 30, 2017 | Apr 30, 2017 | Jan 29, 2017 | Oct 30, 2016 | Jul 31, 2016 | May 1, 2016 | Jan 31, 2016 | Nov 1, 2015 | Aug 2, 2015 | May 3, 2015 | Feb 1, 2015 | Nov 2, 2014 | Aug 3, 2014 | May 4, 2014 | Feb 2, 2014 | Nov 3, 2013 | Aug 4, 2013 | May 5, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Average inventory processing period | 78 | 74 | 78 | 72 | 78 | 75 | 78 | 70 | 75 | 73 | 79 | 74 | 79 | 74 | 81 | 74 | 80 | 77 | 81 | 75 | 82 | 81 | 87 | 78 | — | — | — | |
| Average receivable collection period | 7 | 8 | 8 | 7 | 8 | 8 | 8 | 7 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 7 | 8 | 7 | 7 | 7 | 8 | 6 | — | — | — | |
| Average payables payment period | 46 | 48 | 52 | 40 | 48 | 50 | 53 | 40 | 48 | 49 | 53 | 41 | 48 | 50 | 53 | 41 | 46 | 49 | 53 | 39 | 47 | 50 | 55 | 41 | — | — | — | |
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Cash conversion cycle1 | 39 | 34 | 34 | 39 | 38 | 33 | 33 | 37 | 35 | 32 | 34 | 41 | 39 | 32 | 36 | 41 | 42 | 35 | 36 | 43 | 42 | 38 | 40 | 43 | — | — | — | |
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 3 | 4 | 6 | 2 | 4 | 4 | 7 | 2 | 5 | 5 | 8 | 4 | 9 | 5 | 8 | 4 | 3 | 4 | 5 | 3 | 4 | — | — | — | |
| TJX Cos. Inc. | 40 | 35 | 36 | 28 | 33 | 27 | 30 | 27 | 30 | 26 | 27 | 24 | 30 | 29 | 31 | 28 | 32 | 28 | 27 | 25 | 28 | 25 | 26 | 25 | — | — | — | |
| Walmart Inc. | 6 | 2 | 3 | 1 | 5 | 3 | 2 | 2 | 7 | 6 | 6 | 5 | 10 | 8 | 11 | 10 | 14 | 12 | 13 | 12 | 17 | 14 | 14 | 13 | — | — | — | |
Based on: 10-Q (filing date: 2019-11-26), 10-Q (filing date: 2019-08-27), 10-Q (filing date: 2019-05-29), 10-K (filing date: 2019-03-28), 10-Q (filing date: 2018-11-20), 10-Q (filing date: 2018-08-21), 10-Q (filing date: 2018-05-22), 10-K (filing date: 2018-03-22), 10-Q (filing date: 2017-11-21), 10-Q (filing date: 2017-08-22), 10-Q (filing date: 2017-05-23), 10-K (filing date: 2017-03-23), 10-Q (filing date: 2016-11-22), 10-Q (filing date: 2016-08-23), 10-Q (filing date: 2016-05-24), 10-K (filing date: 2016-03-24), 10-Q (filing date: 2015-11-24), 10-Q (filing date: 2015-08-25), 10-Q (filing date: 2015-05-27), 10-K (filing date: 2015-03-26), 10-Q (filing date: 2014-11-25), 10-Q (filing date: 2014-08-27), 10-Q (filing date: 2014-05-28), 10-K (filing date: 2014-03-27), 10-Q (filing date: 2013-11-27), 10-Q (filing date: 2013-08-28), 10-Q (filing date: 2013-05-29).
1 Q3 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 78 + 7 – 46 = 39
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |