Lowe's Companies Inc (LOW)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	9,974,000	9,210,000	10,743,000	10,159,000	10,304,000	12,169,000	12,150,000	12,093,000	11,768,000	11,154,000	10,901,000	9,647,000	9,081,000	8,464,000	6,888,000	6,314,000	4,788,000	4,187,000	3,969,000	4,017,000
Interest expense (ttm)	US$ in thousands	1,456,000	1,394,000	1,291,000	1,157,000	1,046,000	961,000	912,000	884,000	868,000	871,000	878,000	874,000	848,000	803,000	758,000	717,000	680,000	645,000	610,000	589,000
Interest coverage		6.85	6.61	8.32	8.78	9.85	12.66	13.32	13.68	13.56	12.81	12.42	11.04	10.71	10.54	9.09	8.81	7.04	6.49	6.51	6.82

February 2, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $9,974,000K ÷ $1,456,000K
= 6.85

Lowe's Companies Inc has shown a relatively stable and healthy interest coverage ratio over the past few years, indicating the company's ability to meet its interest obligations with its operating income. The interest coverage ratio has generally remained above 6, with occasional peaks above 10, illustrating a strong capacity to pay interest expenses using its earnings.

The trend of the interest coverage ratio indicates that Lowe's has been consistently generating sufficient operating income to cover its interest expenses. The higher values of the interest coverage ratio suggest a lower financial risk for the company, as it has a significant buffer between its earnings and interest payments.

Overall, the consistent and satisfactory interest coverage ratio for Lowe's indicates that the company has been effectively managing its debt and interest obligations, which is a positive signal for investors and lenders in terms of the company's financial health and stability.