The Home DepotXSWX:HD +3.50%83 Current Ratio is 1.04 as of Apr. 2026, which is 10% below its 10-year median of 1.16. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF306.31. The stock has 3 warning signs investors should review. Among 1,132 Retail - Cyclical companies, The Home Depot ranks worse than 75.09% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. The Home Depot's current ratio for the quarter that ended in Apr. 2026 was 1.04.
The Home Depot has a current ratio of 1.04. It generally indicates good short-term financial strength.
The historical rank and industry rank for The Home Depot's Current Ratio or its related term are showing as below:
XSWX:HD'
s Current Ratio Range Over the Past 10 Years
Min: 1.01 Med: 1.16 Max: 1.41
Current: 1.04
During the past 13 years, The Home Depot's highest Current Ratio was 1.41. The lowest was 1.01. And the median was 1.16.
XSWX:HD's Current Ratio is ranked worse than 75.09% of 1132
companies
in the Retail - Cyclical industry
Industry Median: 1.58
vs XSWX:HD: 1.04
The Home Depot (XSWX:HD) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
The Home Depot Current Ratio Related Terms
The Home Depot Current Ratio Historical Data
* Premium members only.
The historical data trend for The Home Depot's Current 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.
XSWX:HD vs LOW, FND, HVT: Current Ratio Comparison
For the Home Improvement Retail subindustry, The Home Depot's Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Current Ratio distribution charts can be found below:
* The bar in red indicates where The Home Depot's Current 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 Current Ratio of 1.04 as of Apr. 2026. This is 10% below median its historical median of 1.16. Over the past decade, The Home Depot's Current Ratio has ranged from 1.01 to 1.41. According to the industry distribution chart, The Home Depot ranks #850 out of 1132 companies in the Retail - Cyclical industry, placing it in the top 75.1%.
Is The Home Depot's Current Ratio too high?
The Home Depot's current Current Ratio of 1.04 is 10% below median its 10-year median of 1.16. Over the past 10 years, this metric has ranged from a low of 1.01 to a high of 1.41. The Retail - Cyclical industry median Current Ratio is 1.58. The Home Depot's value of 1.04 is 34.2% below this industry median. Based on the distribution chart, The Home Depot ranks #850 out of 1132 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 Current Ratio compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #850 out of 1132 companies for Current Ratio. This places The Home Depot in the lower half of its industry. The industry median Current Ratio is 1.58. The Home Depot's value of 1.04 is 34.2% below this benchmark. Historically, The Home Depot's own Current Ratio has ranged from 1.01 to 1.41 over the past decade. While the company's 10-year median is 1.16 vs. the industry median of 1.58, 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 Current Ratio for a Retail - Cyclical company?
The median Current Ratio among Retail - Cyclical companies is 1.58, based on 1,132 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current Current Ratio of 1.04 is 34.2% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median Current Ratio is 1.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current Current Ratio is 1.04, which is 10% below median its own 10-year median of 1.16. 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 Current Ratio of 1.04. The stock's GF Value™ is CHF306.31, compared to a current price of CHF275.46 — trading 10.1% below its estimated fair value. The current Current Ratio is 1.04, which is 10% below median its 10-year median of 1.16 and 34.2% below the Retail - Cyclical industry median of 1.58. 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 Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Current Ratio is 1.04 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 CHF275.46 is trading 10.1% below its estimated GF Value™ of CHF306.31.
Key valuation signals for XSWX:HD:
Current Ratio: 1.04 (10% below median its 10-year median of 1.16)
GF Value™: CHF306.31 vs. price of CHF275.46 (10.1% below fair value)
Industry Position: 34.2% below the Retail - Cyclical median (#850 of 1132)
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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