The Home Depot (HD) Inventory Turnover : 1.06 (As of Jan. 2024)

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What is The Home Depot Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. The Home Depot's Cost of Goods Sold for the three months ended in Jan. 2024 was $23,278 Mil. The Home Depot's Average Total Inventories for the quarter that ended in Jan. 2024 was $21,891 Mil. The Home Depot's Inventory Turnover for the quarter that ended in Jan. 2024 was 1.06.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. The Home Depot's Days Inventory for the three months ended in Jan. 2024 was 85.81.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. The Home Depot's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 0.63.

The Home Depot Inventory Turnover Historical Data

The historical data trend for The Home Depot's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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The Home Depot Inventory Turnover Chart

The Home Depot Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Inventory Turnover

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5.11

5.60

5.19

4.46

4.44

The Home Depot Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Inventory Turnover	Get a 7-Day Free Trial															0.94	0.98	1.18	1.08	1.06

The Home Depot Inventory Turnover Calculation

The Home Depot's Inventory Turnover for the fiscal year that ended in Jan. 2024 is calculated as

	Inventory Turnover (A: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jan. 2024 )	/ (	(Total Inventories (A: Jan. 2023 )	+	Total Inventories (A: Jan. 2024 ))	/	count )
=	101709	/ (	(24886	+	20976)	/	2 )
=	101709	/	22931
=	4.44

The Home Depot's Inventory Turnover for the quarter that ended in Jan. 2024 is calculated as

	Inventory Turnover (Q: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jan. 2024 )	/ (	(Total Inventories (Q: Oct. 2023 )	+	Total Inventories (Q: Jan. 2024 ))	/	count )
=	23278	/ (	(22805	+	20976)	/	2 )
=	23278	/	21890.5
=	1.06

The Home Depot (NYSE:HD) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

The Home Depot's Days Inventory for the three months ended in Jan. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jan. 2024 )	/	Cost of Goods Sold (Q: Jan. 2024 )	*	Days in Period
	=	21890.5	/	23278	*	365 / 4
	=	85.81

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

The Home Depot's Inventory to Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	21890.5	/	34786
	=	0.63

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

The Home Depot Inventory Turnover Related Terms

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The Home Depot (HD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The Home Depot Inc (NYSE:HD) » Definitions » Inventory Turnover

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Traded in Other Exchanges

HD:Peru HD:Mexico 1HD:Italy 0R1G:UK HDI:Germany HDI:Germany HDI:Germany HDI:Germany HD:Canada HOME34:Brazil HD:Argentina

Address

2455 Paces Ferry Road, Atlanta, GA, USA, 30339

Website

https://www.homedepot.com

Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.

Executives

William D Bastek	officer: EVP, Merchandising	2455 PACES FERRY RD., SE, C-20, ATLANTA GA 30339
Ann Marie Campbell	officer: EVP - U.S. Stores	2455 PACES FERRY ROAD, ATLANTA GA 30339
Kimberly R Scardino	officer: SVP-Finance, CAO & Controller	108 WILMOT ROAD, DEERFIELD IL 60015
Richard V Mcphail	officer: EVP & CFO	2455 PACES FERRY RD SE, ATLANTA GA 30339
Timothy A. Hourigan	officer: EVP - Human Resources	2455 PACES FERRY RD, SE, ATLANTA GA 30339
Fahim Siddiqui	officer: EVP and CIO	2455 PACES FERRY RD., SE, ATLANTA GA 30339
Teresa Wynn Roseborough	officer: EVP, Gen. Counsel & Corp. Sec.	2455 PACES FERRY ROAD NW, C-20, ATLANTA GA 30339
Hector A Padilla	officer: EVP - Outside Sales & Service	2455 PACES FERRY RD., SE, ATLANTA GA 30339
Jeffrey G Kinnaird	officer: EVP - Merchandising	2455 PACES FERRY RD., SE, C-20 LEGAL AFFAIRS, ATLANTA GA 30339
Edward P. Decker	officer: EVP, Merchandising	2455 PACES FERRY RD NW, C-20, ATLANTA X1 30339
Matt Carey	officer: EVP & CIO	11216 WAPLES MILL ROAD SUITE 100, FAIRFAX VA 22030
Paula Santilli	director	PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Becker Caryn Seidman	director	65 EAST 55TH STREET, 17TH FLOOR, NEW YORK NY 10022
John A. Deaton	officer: EVP - Supply Chain & Prod. Dev	2455 PACES FERRY RD., SE, ATLANTA GA 30339
Craig A Menear	director, officer: Chairman & CEO	1436 PEACHTREE BATTLE AVENUE, ATLANTA GA 30327