Lowe's Companies Inc (LOW)
Quick 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 | 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
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 some fluctuations over the past few years. As of February 2, 2024, the quick ratio stands at 0.08, indicating that the company may have difficulty meeting its short-term obligations with its most liquid assets alone. This ratio has ranged from a low of 0.05 on February 1, 2019, to a high of 0.60 on July 31, 2020.
The quick ratio is a measure of a company's ability to cover its current liabilities with its most liquid assets, excluding inventory. A higher quick ratio typically suggests better short-term financial health and liquidity. However, Lowe's quick ratio has generally been low, hovering below 0.3 for most of the observed periods.
Investors and analysts may view Lowe's low quick ratio as a potential risk factor, indicating a reliance on inventory to meet short-term obligations. It may be prudent for the company to focus on improving its liquidity position by managing its current assets and liabilities more effectively to ensure long-term financial stability.
Peer comparison
Feb 2, 2024