Lowe's Companies Inc (LOW)
Cash ratio
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | Apr 29, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,761,000 | 3,271,000 | 4,360,000 | 3,237,000 | 921,000 | 921,000 | 1,210,000 | 1,210,000 | 3,494,000 | 3,494,000 | 2,950,000 | 1,348,000 | 1,348,000 | 3,192,000 | 3,192,000 | 1,482,000 | 1,482,000 | 3,414,000 | 3,414,000 | 1,133,000 |
| Short-term investments | US$ in thousands | 372,000 | 335,000 | 330,000 | 264,000 | 307,000 | 307,000 | 321,000 | 321,000 | 374,000 | 374,000 | 423,000 | 384,000 | 384,000 | 464,000 | 464,000 | 450,000 | 450,000 | 368,000 | 368,000 | 271,000 |
| Total current liabilities | US$ in thousands | 18,757,000 | 19,447,000 | 18,246,000 | 19,506,000 | 15,568,000 | 15,568,000 | 16,496,000 | 16,496,000 | 17,612,000 | 17,612,000 | 19,210,000 | 19,511,000 | 19,511,000 | 20,876,000 | 20,876,000 | 20,366,000 | 20,366,000 | 21,831,000 | 21,831,000 | 19,668,000 |
| Cash ratio | 0.11 | 0.19 | 0.26 | 0.18 | 0.08 | 0.08 | 0.09 | 0.09 | 0.22 | 0.22 | 0.18 | 0.09 | 0.09 | 0.18 | 0.18 | 0.09 | 0.09 | 0.17 | 0.17 | 0.07 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,761,000K
+ $372,000K)
÷ $18,757,000K
= 0.11
The cash ratio of Lowe's Companies Inc represents the company's ability to cover its short-term liabilities with its available cash and cash equivalents. Based on the provided data, the cash ratio has fluctuated over the reporting periods, ranging from 0.07 to 0.26.
A higher cash ratio indicates a stronger ability to meet short-term obligations without having to rely on external sources of funding. In this case, Lowe's cash ratio has shown variability, with significant increases and decreases observed throughout the periods.
For example, the cash ratio increased from 0.07 in January 31, 2022, to 0.17 in both April 29, 2022, and April 30, 2022. However, there were subsequent declines in the ratio, such as in July 29, 2022, and July 31, 2022, where the ratio dropped back to 0.09.
While the cash ratio has shown fluctuations, it is important to monitor the trend over time to assess the company's liquidity position and ability to manage short-term financial obligations effectively. A stable or improving cash ratio could indicate a healthy financial position for Lowe's, while a declining trend may warrant further scrutiny of the company's financial health and liquidity management strategies.
Peer comparison
Jan 31, 2025