Lowe's Companies Inc (LOW)
Financial leverage ratio
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 41,795,000 | 43,708,000 | 44,640,000 | 46,735,000 | 39,471,000 |
| Total stockholders’ equity | US$ in thousands | -15,050,000 | -14,254,000 | -4,816,000 | 1,437,000 | 1,972,000 |
| Financial leverage ratio | — | — | — | 32.52 | 20.02 |
February 2, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $41,795,000K ÷ $-15,050,000K
= —
The financial leverage ratio for Lowe's Companies Inc for the fiscal years ending February 3, 2023, and earlier was not available. However, for the fiscal years ending January 29, 2021, and January 31, 2020, the financial leverage ratio was 32.52 and 20.02, respectively.
The increase in the financial leverage ratio from 20.02 in 2020 to 32.52 in 2021 indicates an increase in the company's reliance on debt to finance its operations and assets. A higher financial leverage ratio suggests a higher level of financial risk for the company since it indicates that a larger portion of the company's assets is financed through debt rather than equity.
It is important for investors and stakeholders to monitor the trend of the financial leverage ratio over time to assess the company's ability to meet its debt obligations and manage its financial risk effectively.
Peer comparison
Feb 2, 2024