Current Ratio

Home Depot’s current ratio of 1.04x means the company has $1.04 in current assets (like cash, inventory, and receivables) for every $1 of short-term debt due within a year — a measure of its ability to cover near-term obligations.

This is below the sector median of 1.20x, placing HD in the 36th percentile among its peers, indicating a lower liquidity buffer than most competitors. Because year-over-year and quarter-over-quarter changes are listed as N/A, and no trend data is available for the last eight quarters, there is no basis to assess whether liquidity is improving or deteriorating. A low current ratio paired with no trend visibility suggests the metric alone does not flag a worsening liquidity position, but it does point to tighter short-term financial flexibility relative to the sector. This supports the overall CAUTIOUS verdict: the ratio is below the peer median, reinforcing concern about HD’s ability to easily meet short-term obligations if revenue or credit conditions tighten.

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