Lowe's Companies Inc (LOW)
Solvency ratios
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
Based on the provided data on Lowe's Companies Inc, the solvency ratios show a consistently low level of debt relative to assets over the reported periods, with a debt-to-assets ratio of 0.00 across all dates. This indicates that the company has minimal debt in relation to its total assets, suggesting a strong financial position in terms of solvency.
The debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio are not available (denoted by \u2014) for the periods reported, making it challenging to assess the company's leverage and capital structure from these specific metrics.
Overall, the data suggests that Lowe's Companies Inc has effectively managed its debt levels in relation to its assets, which can be viewed positively in terms of solvency and financial stability.
Coverage ratios
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | |
|---|---|---|---|---|---|
| Interest coverage | 7.22 | 7.80 | 7.85 | 8.78 | 8.77 |
Interest coverage is a financial ratio that measures a company's ability to pay its interest expenses on outstanding debt. For Lowe's Companies Inc, the interest coverage ratio over the past five years has been relatively stable, ranging between 7.22 and 8.78.
A higher interest coverage ratio indicates that the company is more capable of servicing its interest obligations from its earnings. Lowe's interest coverage ratio has stayed within a reasonable range, suggesting that the company has been consistently generating sufficient earnings to cover its interest expenses comfortably.
While the slight decrease from 8.78 in February 2023 to 7.22 in January 2025 may raise some concerns, Lowe's overall interest coverage ratio remains at levels that generally demonstrate a healthy financial position with the ability to meet its interest payments. It's important for investors and stakeholders to monitor this ratio over time to ensure the company's continued ability to manage its debt obligations effectively.