Lowe's Companies Inc (LOW)
Quick ratio
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 921,000 | 1,348,000 | 1,133,000 | 4,690,000 | 716,000 |
| Short-term investments | US$ in thousands | 307,000 | 384,000 | 271,000 | 506,000 | 160,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 15,568,000 | 19,511,000 | 19,668,000 | 18,730,000 | 15,182,000 |
| Quick ratio | 0.08 | 0.09 | 0.07 | 0.28 | 0.06 |
February 2, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($921,000K
+ $307,000K
+ $—K)
÷ $15,568,000K
= 0.08
The quick ratio of Lowe's Companies Inc has shown fluctuation over the past five years. As of February 2, 2024, the quick ratio stands at 0.08, which indicates that the company may face challenges in meeting its short-term obligations using its most liquid assets. This is a decrease from the previous year where the quick ratio was 0.09. Looking back over the five-year period, the quick ratio has been relatively low, with the highest being 0.28 on January 29, 2021.
The downward trend in the quick ratio may raise concerns about Lowe's Companies Inc's ability to cover its current liabilities with its quick assets. It suggests a potential liquidity risk for the company if it faces unexpected financial obligations in the short term. Further analysis of the composition of quick assets and the nature of current liabilities would provide a more in-depth understanding of the company's liquidity position.
Peer comparison
Feb 2, 2024