Inventory Turnover › Home Depot
Home Depot Inventory Turnover: Multi-Year 10-K History
Home Depot Inc (HD) reported 4.8x inventory turnover in fiscal 2024, recovering from a low of 4.4x in FY23. The structural gap to Lowes (3.9x in FY24) reflects Pro-customer mix and operating leverage that has compounded over a decade. Source: Home Depot 10-K filings on SEC EDGAR.
FY21 - FY24 turnover history
| Fiscal Year | COGS | Inv (start) | Inv (end) | Turnover |
|---|---|---|---|---|
| FY21 (ended Jan 2022) | $100.32B | $16.63B | $22.07B | 5.2x |
| FY22 (ended Jan 2023) | $104.62B | $22.07B | $24.89B | 4.5x |
| FY23 (ended Jan 2024) | $101.65B | $24.89B | $20.98B | 4.4x |
| FY24 (ended Feb 2025) | $103.00B | $20.98B | $22.42B | 4.8x |
Home Depot vs Lowes: the 0.9 turn gap
Home Depot and Lowes are operationally near-twins on store format and category structure. The persistent turnover gap (4.8x vs 3.9x in FY24) is a measurable result of three differences:
- Pro mix. Home Depot disclosed in their FY24 supplementals that Pro customers represent roughly half of revenue. Lowes operates closer to 25% Pro. Pros buy in pallet quantities, accelerating SKU exit velocity.
- Distribution centre network. Home Depot operates a denser DC footprint, including market delivery centres for direct-to-jobsite Pro shipments. Lower stock weeks in stores; faster replenishment.
- SRS Distribution acquisition (2024). Adds Pro-only distribution that bypasses store-level inventory entirely. Long-term turnover impact still being absorbed in FY24 data.
The 0.9-turn gap implies Home Depot earns approximately $4-5B more revenue per dollar of inventory invested than Lowes at the same gross margin band. That is the structural prize from the Pro strategy.
Why FY22-FY23 turnover compressed
FY22 and FY23 saw Home Depot turnover compress from 5.2x to 4.4x. Drivers disclosed in 10-K MD&A:
- Housing market cooling. Mortgage rate rises reduced project demand; longer planning cycles for homeowners.
- Lumber price normalisation. Lumber inventory carried at elevated cost as spot prices fell; balance sheet inflation absorbed.
- Hurricane-prep over-buy. Storm seasons that did not materialise as forecast left seasonal stock to clear.
FY24 recovery shows the operating discipline: inventory cuts in calendar 2023 cleared excess; the 4.8x in FY24 is the start of a return to the 5x band that defines Home Depots normal range.