Lowe's Companies Inc (LOW)
Quick ratio
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,761,000 | 921,000 | 921,000 | 1,348,000 | 1,348,000 |
| Short-term investments | US$ in thousands | 372,000 | 307,000 | 307,000 | 384,000 | 384,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 18,757,000 | 15,568,000 | 15,568,000 | 19,511,000 | 19,511,000 |
| Quick ratio | 0.11 | 0.08 | 0.08 | 0.09 | 0.09 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,761,000K
+ $372,000K
+ $—K)
÷ $18,757,000K
= 0.11
The quick ratio for Lowe's Companies Inc has been consistently low over the past few years, ranging from 0.08 to 0.11. This indicates that the company may have difficulty meeting its short-term obligations using its most liquid assets. A quick ratio below 1.0 generally suggests a potential liquidity issue, as it implies that current liabilities exceed current assets excluding inventory. It is important for Lowe's to closely monitor this ratio and take measures to improve its liquidity position, such as increasing cash reserves or reducing current liabilities.
Peer comparison
Jan 31, 2025