Lowe's Companies Inc (LOW)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 41,795,000 | 42,519,000 | 44,521,000 | 43,708,000 | 46,973,000 | 46,725,000 | 49,725,000 | 44,640,000 | 49,400,000 | 49,404,000 | 51,200,000 | 46,735,000 | 50,880,000 | 51,763,000 | 45,832,000 | 39,471,000 | 39,764,000 | 40,695,000 | 43,219,000 | 34,508,000 |
| Total stockholders’ equity | US$ in thousands | -15,050,000 | -15,147,000 | -14,732,000 | -14,254,000 | -12,868,000 | -8,442,000 | -6,877,000 | -4,816,000 | -1,576,000 | -175,000 | 445,000 | 1,437,000 | 4,073,000 | 4,356,000 | 1,716,000 | 1,972,000 | 2,458,000 | 2,640,000 | 3,236,000 | 3,644,000 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | 115.06 | 32.52 | 12.49 | 11.88 | 26.71 | 20.02 | 16.18 | 15.41 | 13.36 | 9.47 |
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 has shown a fluctuating trend over the past few years, indicating changes in the company's debt levels relative to its equity. The ratio was relatively stable around the 10-15 range from early 2019 to mid-2021, suggesting a moderate level of financial leverage during that period. However, there was a significant spike in the ratio in the third quarter of 2021, jumping to 115.06 and indicating a substantial increase in debt relative to equity.
Subsequently, there was a noticeable decline in the financial leverage ratio in the following quarters, reaching levels around 10-30. This reduction in the ratio suggests a decrease in the company's debt compared to its equity, potentially indicating efforts to deleverage and strengthen the balance sheet.
Overall, the fluctuating nature of Lowe's Companies Inc financial leverage ratio reflects changes in the company's capital structure and provides valuable insights into its financial risk and stability. Investors and stakeholders may monitor this ratio closely to assess the company's ability to meet its financial obligations and manage leverage effectively.
Peer comparison
Feb 2, 2024