HD Quick Ratio Analysis

The quick ratio measures a company’s ability to pay short-term debts using its most liquid assets (cash, marketable securities, receivables); at 0.22x, Home Depot has only $0.22 of these assets for every $1 of current liabilities.

This is far below the sector median of 0.71x, placing the company in the 8th percentile among peers — meaning 92% of sector competitors have a stronger liquidity position. Year-over-year data is not available, but the ratio declined 4.3% quarter-over-quarter from 0.23x to 0.22x. A very low liquidity level combined with a weakening trend signals elevated short-term financial risk, as the company may struggle to cover upcoming obligations without resorting to external financing or asset sales. This metric directly supports the overall CAUTIOUS verdict, because the liquidity weakness and deterioration are material concerns for investment safety.

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