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Back to The Home Depot.

How Fast Does Home Depot Turn Inventory?

Ben Gilbert and David Rosenthal say Home Depot turns inventory four and a half times a year, a pace they call totally unbelievable for high-dollar specialty goods.

Costco sells the items on its shelf faster than it needs to pay suppliers. Home Depot does not have that cycle. At any given time, about half of Home Depot inventory is financed by suppliers who have not been paid yet. The stores still carry 35,000 products in the aisle against Costco's 4,000, plus a million products online. About $11 million of inventory is tied up in a Home Depot store, and Lowe's is about the same.

A turn that fast sits on a wide specialty catalog, which is why the rate stands out.

Grokipedia·Home Depot·Costco

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