The Home DepotXSWX:HD +1.14%83 Cash Ratio is 0.04 as of Apr. 2026, which is 67% below its 10-year median of 0.12. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF307.66. The stock has 3 warning signs investors should review. Among 1,107 Retail - Cyclical companies, The Home Depot ranks worse than 92.41% on this metric.
The Home Depot has a Cash Ratio of 0.04. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for The Home Depot's Cash Ratio or its related term are showing as below:
XSWX:HD'
s Cash Ratio Range Over the Past 10 Years
Min: 0.04 Med: 0.12 Max: 0.58
Current: 0.04
During the past 13 years, The Home Depot's highest Cash Ratio was 0.58. The lowest was 0.04. And the median was 0.12.
XSWX:HD's Cash Ratio is ranked worse than 92.41% of 1107
companies
in the Retail - Cyclical industry
Industry Median: 0.36
vs XSWX:HD: 0.04
The Home Depot (XSWX:HD) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
The Home Depot Cash Ratio Related Terms
The Home Depot Cash Ratio Historical Data
* Premium members only.
The historical data trend for The Home Depot's Cash Ratio 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.
For the Home Improvement Retail subindustry, The Home Depot's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Home Depot Cash Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Cash Ratio distribution charts can be found below:
* The bar in red indicates where The Home Depot's Cash Ratio falls into.
* 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.
The Home Depot (XSWX:HD) has a Cash Ratio of 0.04 as of Apr. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on The Home Depot and its competitors. This is 67% below median its historical median of 0.12. Over the past decade, The Home Depot's Cash Ratio has ranged from 0.04 to 0.58. According to the industry distribution chart, The Home Depot ranks #1023 out of 1107 companies in the Retail - Cyclical industry, placing it in the top 92.4%.
Is The Home Depot's Cash Ratio too high?
The Home Depot's current Cash Ratio of 0.04 is 67% below median its 10-year median of 0.12. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 0.58. The Retail - Cyclical industry median Cash Ratio is 0.36. The Home Depot's value of 0.04 is 88.9% below this industry median. Based on the distribution chart, The Home Depot ranks #1023 out of 1107 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, The Home Depot has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does The Home Depot's Cash Ratio compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #1023 out of 1107 companies for Cash Ratio. This places The Home Depot in the lower half of its industry. The industry median Cash Ratio is 0.36. The Home Depot's value of 0.04 is 88.9% below this benchmark. Historically, The Home Depot's own Cash Ratio has ranged from 0.04 to 0.58 over the past decade. While the company's 10-year median is 0.12 vs. the industry median of 0.36, The Home Depot has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Retail - Cyclical company?
The median Cash Ratio among Retail - Cyclical companies is 0.36, based on 1,107 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current Cash Ratio of 0.04 is 88.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median Cash Ratio is 0.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current Cash Ratio is 0.04, which is 67% below median its own 10-year median of 0.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Home Depot stock overvalued right now?
The Home Depot (XSWX:HD) has a current Cash Ratio of 0.04. The stock's GF Value™ is CHF307.66, compared to a current price of CHF276.05 — trading 10.3% below its estimated fair value. The current Cash Ratio is 0.04, which is 67% below median its 10-year median of 0.12 and 88.9% below the Retail - Cyclical industry median of 0.36. The Home Depot's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Cash Ratio is 0.04 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Home Depot (XSWX:HD) Overvalued in 2026?
Based on GuruFocus' analysis, The Home Depot stock appears to be undervalued.
The current stock price of CHF276.05 is trading 10.3% below its estimated GF Value™ of CHF307.66.
Key valuation signals for XSWX:HD:
Cash Ratio: 0.04 (67% below median its 10-year median of 0.12)
GF Value™: CHF307.66 vs. price of CHF276.05 (10.3% below fair value)
Industry Position: 88.9% below the Retail - Cyclical median (#1023 of 1107)
No single metric tells the full story. See the XSWX:HD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Home Depot is the world's largest home improvement specialty retailer, operating 2,361 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, Canada, and Mexico. Its stores offer 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 Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The 2024 tie-up with SRS will help grow professional demand in roofing, pool, and landscaping projects, while the 2025 purchase of GMS will lift building product sales through 1,250 distribution locations.
83GF Score
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