Lowe’s Cos. Inc., balance sheet: debt

US$ in millions

	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Short-term borrowings	—)	499)	—)	—)	1,941)	722)
Current maturities of long-term debt	537)	585)	868)	1,112)	597)	1,110)
Long-term debt, excluding current maturities	35,384)	32,876)	23,859)	20,668)	16,768)	14,391)
Total debt, including finance lease obligations (carrying amount)	35,921)	33,960)	24,727)	21,780)	19,306)	16,223)

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Debt item	Description	The company
Total debt, including finance lease obligations (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Lowe’s Cos. Inc. total debt increased from 2022 to 2023 and from 2023 to 2024.

	Feb 2, 2024
Selected Financial Data (US$ in millions)
Short-term borrowings	—)
Long-term debt, excluding finance lease obligations	32,759)
Finance lease obligations	509)
Total debt, including finance lease obligations (fair value)	33,268)
Financial Ratio
Debt, fair value to carrying amount ratio	0.93

Weighted-average interest rate on debt: 3.96%

Interest rate	Debt amount¹	Interest rate × Debt amount
6.24%	2)	—)
3.26%	9,820)	320)
3.79%	9,507)	360)
5.93%	858)	51)
4.08%	2,380)	97)
3.96%	3,421)	135)
4.37%	6,711)	293)
5.19%	2,713)	141)
4.93%	509)	25)
Total	35,921)	1,423)
3.96%

¹ US$ in millions

² Weighted-average interest rate = 100 × 1,423 ÷ 35,921 = 3.96%

Lowe’s Cos. Inc., interest costs incurred

US$ in millions

12 months ended:	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Interest expense	1,483)	1,160)	897)	872)	718)	652)
Interest capitalized	4)	4)	3)	—)	1)	3)
Interest costs incurred	1,487)	1,164)	900)	872)	719)	655)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Lowe’s Cos. Inc. interest expense increased from 2022 to 2023 and from 2023 to 2024.
Interest capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Lowe’s Cos. Inc. interest costs incurred increased from 2022 to 2023 and from 2023 to 2024.

	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Selected Financial Data (US$ in millions)
Net earnings	7,726)	6,437)	8,442)	5,835)	4,281)	2,314)
Add: Income tax expense	2,449)	2,599)	2,766)	1,904)	1,342)	1,080)
Add: Interest expense, net of amount capitalized	1,483)	1,160)	897)	872)	718)	652)
Earnings before interest and tax (EBIT)	11,658)	10,196)	12,105)	8,611)	6,341)	4,046)

Interest costs incurred	1,487)	1,164)	900)	872)	719)	655)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	7.86	8.79	13.49	9.88	8.83	6.21
Adjusted interest coverage ratio (with capitalized interest)²	7.84	8.76	13.45	9.88	8.82	6.18

2024 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of amount capitalized
= 11,658 ÷ 1,483 = 7.86

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 11,658 ÷ 1,487 = 7.84

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Lowe’s Cos. Inc. adjusted interest coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Lowe’s Cos. Inc. (NYSE:LOW)

Analysis of Debt