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.
Peer comparison
Feb 2, 2024