Lowe's Companies Inc (LOW)

Current ratio

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Total current assets	US$ in thousands	19,071,000	21,442,000	20,060,000	22,326,000	15,318,000
Total current liabilities	US$ in thousands	15,568,000	19,511,000	19,668,000	18,730,000	15,182,000
Current ratio		1.23	1.10	1.02	1.19	1.01

February 2, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $19,071,000K ÷ $15,568,000K
= 1.23

The current ratio for Lowe's Companies Inc has shown fluctuations over the past five years. As of February 2, 2024, the current ratio stands at 1.23, indicating that the company has $1.23 in current assets to cover each dollar of current liabilities. This represents an improvement from the previous year's ratio of 1.10. Despite the increase, it is important to note that the current ratio of 1.23 may still suggest that Lowe's could potentially face liquidity issues in meeting its short-term obligations.

Looking back over the five-year period, we observe that the current ratio has fluctuated between a low of 1.01 in January 2020 and a high of 1.23 in February 2024. The ratio reached its lowest point in January 2020, indicating a relatively weaker liquidity position at that time. On the other hand, the current ratio peaked in February 2024, reflecting an improved ability to meet short-term obligations.

Overall, while the current ratio for Lowe's Companies Inc has shown variability over the past five years, the recent increase to 1.23 suggests an improved liquidity position. However, investors and stakeholders should continue to monitor this ratio along with other financial indicators to assess the company's overall financial health and ability to manage short-term liabilities effectively.