Home Depot Inc. (HD)


Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Beginner level


Short-term Activity Ratios (Summary)

Home Depot Inc., short-term (operating) activity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
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
Turnover Ratios
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
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
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
Working capital turnover 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
Average No. Days
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
Add: 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
Operating cycle 85 82 86 79 86 83 86 77 83 81 87 82 87 82 89 82 88 84 89 82 89 88 95 84
Less: 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
Cash conversion cycle 39 34 34 39 38 33 33 37 35 32 34 41 39 32 36 41 42 35 36 43 42 38 40 43

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)

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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)

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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 + 746 = 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.