Lowe's Companies Inc (LOW)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | Apr 29, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 10,501,000 | 10,324,000 | 9,554,000 | 8,803,000 | 8,846,000 | 11,044,000 | 13,199,000 | 13,807,000 | 12,815,000 | 10,644,000 | 9,715,000 | 7,335,000 | 9,859,000 | 12,373,000 | 12,683,000 | 15,061,000 | 12,668,000 | 10,288,000 | 9,770,000 | 9,257,000 |
| Interest expense (ttm) | US$ in thousands | 1,422,000 | 1,430,000 | 1,485,000 | 1,488,000 | 1,487,000 | 1,492,000 | 1,496,000 | 1,473,000 | 1,438,000 | 1,399,000 | 1,332,000 | 1,292,000 | 1,224,000 | 1,156,000 | 1,092,000 | 1,025,000 | 993,000 | 950,000 | 931,000 | 913,000 |
| Interest coverage | 7.38 | 7.22 | 6.43 | 5.92 | 5.95 | 7.40 | 8.82 | 9.37 | 8.91 | 7.61 | 7.29 | 5.68 | 8.05 | 10.70 | 11.61 | 14.69 | 12.76 | 10.83 | 10.49 | 10.14 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $10,501,000K ÷ $1,422,000K
= 7.38
Lowe's Companies Inc has shown varying levels of interest coverage over the given time period. The interest coverage ratio measures the company's ability to pay interest expenses on its outstanding debt.
Looking at the data, we can see that the interest coverage ratio for Lowe's has fluctuated between 5.68 and 14.69. Higher values indicate a stronger ability to meet interest obligations.
The interest coverage ratio displayed an increasing trend from January 2022 to July 2022, reaching a peak of 14.69 in July 2022. However, the ratio then fluctuated and started to decline gradually, reaching 6.43 in July 2024.
Overall, although the interest coverage ratio has shown some fluctuations, it has remained relatively healthy, indicating Lowe's ability to comfortably cover its interest expenses with its operating income. However, the declining trend in recent periods may warrant further monitoring to ensure the company's financial health and ability to manage its debt obligations effectively.
Peer comparison
Jan 31, 2025