Lowe's Companies Inc (LOW)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 19,071,000 | 19,968,000 | 22,236,000 | 21,442,000 | 24,991,000 | 22,667,000 | 25,611,000 | 20,060,000 | 24,849,000 | 25,083,000 | 26,816,000 | 22,326,000 | 26,916,000 | 27,717,000 | 21,926,000 | 15,318,000 | 15,662,000 | 16,796,000 | 19,335,000 | 14,228,000 |
| 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 |
| Current ratio | 1.23 | 1.21 | 1.26 | 1.10 | 1.20 | 1.11 | 1.17 | 1.02 | 1.19 | 1.16 | 1.17 | 1.19 | 1.38 | 1.30 | 1.20 | 1.01 | 1.04 | 1.06 | 1.09 | 0.98 |
February 2, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $19,071,000K ÷ $15,568,000K
= 1.23
The current ratio of Lowe's Companies Inc has shown fluctuations over the analyzed period, ranging from a low of 0.98 to a high of 1.38. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of financial health.
Lowe's current ratio has generally been above 1, indicating a relatively strong ability to cover its short-term liabilities with its current assets. The ratio peaked at 1.38 in October 2020, suggesting a particularly strong liquidity position at that time. However, there were periods, such as in January 2020 and January 2022, where the current ratio dipped below 1, which may indicate potential liquidity challenges in meeting short-term obligations.
Overall, Lowe's current ratio has shown variability but has mostly remained at healthy levels, reflecting the company's ability to manage its short-term financial obligations. Potential investors and stakeholders would likely find the company's consistent ability to cover its short-term liabilities positively, although fluctuations in the ratio should be monitored for any potential risks to financial stability.
Peer comparison
Feb 2, 2024