Inventory Turnover › Home Depot
Home Depot Inventory Turnover: Multi-Year 10-K History
Home Depot Inc (HD) reported 4.5x inventory turnover in fiscal 2025 (year ended February 1, 2026), easing from 4.8x in FY24 as the inventory base grew. The structural gap to Lowes (3.3x in FY25) reflects Pro-customer mix and operating leverage that has compounded over a decade. Source: Home Depot 10-K filings on SEC EDGAR.
FY21 - FY25 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) | $101.71B | $24.89B | $20.98B | 4.4x |
| FY24 (ended Feb 2025) | $106.21B | $20.98B | $23.45B | 4.8x |
| FY25 (ended Feb 2026) | $109.82B | $23.45B | $25.82B | 4.5x |
Home Depot vs Lowes: the structural turn gap
Home Depot and Lowes are operationally near-twins on store format and category structure. The persistent turnover gap (4.5x vs 3.3x in FY25, and 4.8x vs 3.3x 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 1.2-to-1.5-turn gap means Home Depot cycles its stock far faster than Lowes for the same balance-sheet investment. On Home Depots roughly $25B average inventory, each extra turn runs about $25B more COGS through the same capital base. Compounded over years, that throughput advantage 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 showed the operating discipline: inventory cuts in calendar 2023 cleared excess and turnover rebounded to 4.8x. FY25 then eased back to 4.5x as the inventory base grew again on full-year SRS Distribution consolidation and continued store growth, keeping Home Depot in its low-to-mid 4x band rather than the 5x highs of FY21.