Analysis of Short-term (Operating) Activity Ratios
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
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Home Depot Inc. inventory turnover ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Home Depot Inc. receivables turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Home Depot Inc. payables turnover ratio increased from 2023 to 2024 but then decreased significantly from 2024 to 2025. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Home Depot Inc. working capital turnover ratio improved from 2023 to 2024 and from 2024 to 2025. |
| 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. operating cycle improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 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. number of days of payables outstanding decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level. |
| 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, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 106,206) | 101,709) | 104,625) | 100,325) | 87,257) | 72,653) | |
| Merchandise inventories | 23,451) | 20,976) | 24,886) | 22,068) | 16,627) | 14,531) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 4.53 | 4.85 | 4.20 | 4.55 | 5.25 | 5.00 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 9.54 | 9.15 | 8.40 | 8.34 | 9.80 | |
| Lowe’s Cos. Inc. | 3.21 | 3.41 | 3.50 | 3.65 | 3.71 | 3.73 | |
| TJX Cos. Inc. | — | 6.36 | 6.21 | 5.82 | 5.66 | 6.13 | |
| Inventory Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 6.71 | 6.18 | 6.10 | 6.36 | 6.83 | |
| Inventory Turnover, Industry | |||||||
| Consumer Discretionary | — | 7.78 | 6.99 | 6.67 | 7.04 | 7.48 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Inventory turnover = Cost of sales ÷ Merchandise inventories
= 106,206 ÷ 23,451 = 4.53
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. inventory turnover ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025. |
Receivables Turnover
Home Depot Inc., receivables turnover calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 159,514) | 152,669) | 157,403) | 151,157) | 132,110) | 110,225) | |
| Receivables, net | 4,903) | 3,328) | 3,317) | 3,426) | 2,992) | 2,106) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 32.53 | 45.87 | 47.45 | 44.12 | 44.15 | 52.34 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 18.60 | 16.86 | 19.32 | 23.26 | 26.09 | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | — | 102.49 | 88.70 | 93.79 | 69.69 | 108.00 | |
| Receivables Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 24.41 | 23.15 | 26.52 | 30.59 | 35.28 | |
| Receivables Turnover, Industry | |||||||
| Consumer Discretionary | — | 18.67 | 17.85 | 17.96 | 21.22 | 21.85 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Receivables turnover = Net sales ÷ Receivables, net
= 159,514 ÷ 4,903 = 32.53
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. receivables turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025. |
Payables Turnover
Home Depot Inc., payables turnover calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 106,206) | 101,709) | 104,625) | 100,325) | 87,257) | 72,653) | |
| Accounts payable | 11,938) | 10,037) | 11,443) | 13,462) | 11,606) | 7,787) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 8.90 | 10.13 | 9.14 | 7.45 | 7.52 | 9.33 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 3.46 | 3.59 | 3.63 | 3.46 | 3.22 | |
| Lowe’s Cos. Inc. | 6.01 | 6.61 | 6.16 | 5.65 | 5.51 | 6.42 | |
| TJX Cos. Inc. | — | 9.83 | 9.53 | 7.77 | 5.09 | 11.17 | |
| Payables Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 4.48 | 4.61 | 4.48 | 4.19 | 4.25 | |
| Payables Turnover, Industry | |||||||
| Consumer Discretionary | — | 5.36 | 5.18 | 4.80 | 4.66 | 4.74 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 106,206 ÷ 11,938 = 8.90
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. payables turnover ratio increased from 2023 to 2024 but then decreased significantly from 2024 to 2025. |
Working Capital Turnover
Home Depot Inc., working capital turnover calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 31,683) | 29,775) | 32,471) | 29,055) | 28,477) | 19,810) | |
| Less: Current liabilities | 28,661) | 22,015) | 23,110) | 28,693) | 23,166) | 18,375) | |
| Working capital | 3,022) | 7,760) | 9,361) | 362) | 5,311) | 1,435) | |
| Net sales | 159,514) | 152,669) | 157,403) | 151,157) | 132,110) | 110,225) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 52.78 | 19.67 | 16.81 | 417.56 | 24.87 | 76.81 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 55.79 | 77.32 | — | 24.33 | 60.82 | |
| Lowe’s Cos. Inc. | 52.26 | 24.66 | 50.26 | 245.54 | 24.92 | 530.50 | |
| TJX Cos. Inc. | — | 24.50 | 23.22 | 17.40 | 6.51 | 23.97 | |
| Working Capital Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 37.38 | 42.11 | — | 21.83 | 63.17 | |
| Working Capital Turnover, Industry | |||||||
| Consumer Discretionary | — | 13.56 | 14.99 | 18.57 | 11.02 | 13.68 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Working capital turnover = Net sales ÷ Working capital
= 159,514 ÷ 3,022 = 52.78
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. working capital turnover ratio improved from 2023 to 2024 and from 2024 to 2025. |
Average Inventory Processing Period
Home Depot Inc., average inventory processing period calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 4.53 | 4.85 | 4.20 | 4.55 | 5.25 | 5.00 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 81 | 75 | 87 | 80 | 70 | 73 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Amazon.com Inc. | — | 38 | 40 | 43 | 44 | 37 | |
| Lowe’s Cos. Inc. | 114 | 107 | 104 | 100 | 98 | 98 | |
| TJX Cos. Inc. | — | 57 | 59 | 63 | 65 | 60 | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 54 | 59 | 60 | 57 | 53 | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Discretionary | — | 47 | 52 | 55 | 52 | 49 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.53 = 81
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, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 32.53 | 45.87 | 47.45 | 44.12 | 44.15 | 52.34 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 11 | 8 | 8 | 8 | 8 | 7 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Amazon.com Inc. | — | 20 | 22 | 19 | 16 | 14 | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | — | 4 | 4 | 4 | 5 | 3 | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 15 | 16 | 14 | 12 | 10 | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Discretionary | — | 20 | 20 | 20 | 17 | 17 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 32.53 = 11
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, comparison to benchmarks
No. days
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 81 | 75 | 87 | 80 | 70 | 73 | |
| Average receivable collection period | 11 | 8 | 8 | 8 | 8 | 7 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 92 | 83 | 95 | 88 | 78 | 80 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Amazon.com Inc. | — | 58 | 62 | 62 | 60 | 51 | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | — | 61 | 63 | 67 | 70 | 63 | |
| Operating Cycle, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 69 | 75 | 74 | 69 | 63 | |
| Operating Cycle, Industry | |||||||
| Consumer Discretionary | — | 67 | 72 | 75 | 69 | 66 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 81 + 11 = 92
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. operating cycle improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level. |
Average Payables Payment Period
Home Depot Inc., average payables payment period calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 8.90 | 10.13 | 9.14 | 7.45 | 7.52 | 9.33 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 41 | 36 | 40 | 49 | 49 | 39 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Amazon.com Inc. | — | 106 | 102 | 101 | 105 | 113 | |
| Lowe’s Cos. Inc. | 61 | 55 | 59 | 65 | 66 | 57 | |
| TJX Cos. Inc. | — | 37 | 38 | 47 | 72 | 33 | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 82 | 79 | 81 | 87 | 86 | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Discretionary | — | 68 | 70 | 76 | 78 | 77 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.90 = 41
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. number of days of payables outstanding decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level. |
Cash Conversion Cycle
Home Depot Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 81 | 75 | 87 | 80 | 70 | 73 | |
| Average receivable collection period | 11 | 8 | 8 | 8 | 8 | 7 | |
| Average payables payment period | 41 | 36 | 40 | 49 | 49 | 39 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 51 | 47 | 55 | 39 | 29 | 41 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Amazon.com Inc. | — | -48 | -40 | -39 | -45 | -62 | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | — | 24 | 25 | 20 | -2 | 30 | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | -13 | -4 | -7 | -18 | -23 | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Discretionary | — | -1 | 2 | -1 | -9 | -11 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 81 + 11 – 41 = 51
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. |