Lowe's Companies Inc (LOW)

Cash ratio

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Cash and cash equivalents	US$ in thousands	921,000	1,348,000	1,133,000	4,690,000	716,000
Short-term investments	US$ in thousands	307,000	384,000	271,000	506,000	160,000
Total current liabilities	US$ in thousands	15,568,000	19,511,000	19,668,000	18,730,000	15,182,000
Cash ratio		0.08	0.09	0.07	0.28	0.06

February 2, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($921,000K + $307,000K) ÷ $15,568,000K
= 0.08

The cash ratio of Lowe's Companies Inc has fluctuated over the past five years. As of February 2, 2024, the cash ratio stands at 0.08, indicating that the company has $0.08 in cash to cover each $1 of current liabilities.

Compared to the previous year, the cash ratio decreased slightly from 0.09 to 0.08. This suggests a slight reduction in the company's ability to cover its short-term liabilities solely with its available cash.

However, when looking at the trend over the past five years, the cash ratio has varied significantly, ranging from 0.06 to 0.28. This variability could indicate fluctuations in the company's liquidity position and its ability to meet short-term obligations.

Overall, while the current cash ratio of 0.08 is lower compared to the previous year, further analysis of Lowe's liquidity position, in conjunction with other financial ratios and factors, would be necessary to provide a more comprehensive assessment of the company's financial health.