Lowe's Companies Inc (LOW)
Cash ratio
| Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | Aug 2, 2019 | May 3, 2019 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 921,000 | 1,210,000 | 3,494,000 | 1,348,000 | 3,192,000 | 1,482,000 | 3,414,000 | 1,133,000 | 6,121,000 | 4,835,000 | 6,692,000 | 4,690,000 | 8,249,000 | 11,641,000 | 5,955,000 | 716,000 | 794,000 | 1,796,000 | 2,973,000 | 511,000 |
| Short-term investments | US$ in thousands | 307,000 | 321,000 | 374,000 | 384,000 | 464,000 | 450,000 | 368,000 | 271,000 | 552,000 | 1,420,000 | 454,000 | 506,000 | 1,852,000 | 1,085,000 | 201,000 | 160,000 | 127,000 | 275,000 | 190,000 | 218,000 |
| Total current liabilities | US$ in thousands | 15,568,000 | 16,496,000 | 17,612,000 | 19,511,000 | 20,876,000 | 20,366,000 | 21,831,000 | 19,668,000 | 20,834,000 | 21,664,000 | 22,892,000 | 18,730,000 | 19,564,000 | 21,370,000 | 18,325,000 | 15,182,000 | 15,063,000 | 15,835,000 | 17,781,000 | 14,497,000 |
| Cash ratio | 0.08 | 0.09 | 0.22 | 0.09 | 0.18 | 0.09 | 0.17 | 0.07 | 0.32 | 0.29 | 0.31 | 0.28 | 0.52 | 0.60 | 0.34 | 0.06 | 0.06 | 0.13 | 0.18 | 0.05 |
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 last few years, ranging from a low of 0.05 to a high of 0.60. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
Looking at the trend, the cash ratio appears to have shown some volatility, indicating fluctuations in the company's liquidity position. The ratio was relatively low in some periods, suggesting that Lowe's may have had limited cash on hand compared to its short-term obligations. On the other hand, there were instances where the ratio was relatively high, indicating a stronger ability to meet short-term liabilities with available cash.
In general, a higher cash ratio is preferable as it signifies a better liquidity position and a lower risk of financial distress. It is important for investors and creditors to monitor Lowe's cash ratio over time to assess the company's liquidity health and financial stability.
Peer comparison
Feb 2, 2024