Lowe's Companies Inc (LOW)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Lowe's Companies Inc, the solvency ratios such as the Debt-to-assets ratio, Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio are either not available (indicated by "\u2014") or show a Debt-to-assets ratio of 0.00 for all the reported periods.
Without specific values for the other solvency ratios, it is challenging to provide a comprehensive analysis of Lowe's Companies Inc's solvency position. However, the Debt-to-assets ratio being consistently at 0.00 suggests that the company has minimal or no long-term debt relative to its total assets, indicating a strong financial position in terms of solvency and debt management.
Further analysis would be required to assess the overall solvency and financial leverage of Lowe's Companies Inc accurately. It is important to monitor these ratios over time to understand how the company is managing its debt levels and overall financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt using its operating income. It is calculated by dividing earnings before interest and taxes (EBIT) by the total interest expense incurred.
Analyzing the interest coverage ratios for Lowe's Companies Inc from January 2022 to January 2025, we observe fluctuations over the period. The interest coverage ratio ranged from a high of 14.69 in July 2022 to a low of 5.68 in February 2023. Generally, a higher interest coverage ratio indicates that the company is more capable of servicing its interest obligations.
In the later periods, the interest coverage ratio showed some improvement, but it fluctuated around the 7 to 8 range. It is important for investors and creditors to monitor this ratio to assess Lowe's ability to generate enough operating income to cover its interest payments. A decreasing trend in the interest coverage ratio could signal potential financial distress, whereas an increasing trend indicates improved financial health. It would be prudent for stakeholders to investigate the reasons behind the fluctuations in the interest coverage ratio to assess the company's overall financial stability and risk levels.