Lowe's Cos. Inc. (LOW)

Ratios (Summary)

Lowe's Cos. Inc., liquidity ratios

	Feb 1, 2013	Feb 3, 2012	Jan 28, 2011	Jan 29, 2010	Jan 30, 2009	Feb 1, 2008
Current ratio	1.27	1.28	1.40	1.32	1.15	1.12
Quick ratio	0.09	0.16	0.16	0.14	0.08	0.07
Cash ratio	0.09	0.16	0.16	0.14	0.08	0.07

Source: Based on data from Lowe's Cos. Inc. Annual Reports

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Lowe's Cos. Inc.'s current ratio deteriorated from 2011 to 2012 and from 2012 to 2013.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Lowe's Cos. Inc.'s quick ratio improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Lowe's Cos. Inc.'s cash ratio improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.

	Feb 1, 2013	Feb 3, 2012	Jan 28, 2011	Jan 29, 2010	Jan 30, 2009	Feb 1, 2008
Selected Financial Data (USD $ in millions)
Current assets	9,784	10,072	9,967	9,732	9,251	8,686
Current liabilities	7,708	7,891	7,119	7,355	8,022	7,751
Current Ratio, Comparison to Industry
Lowe's Cos. Inc.¹	1.27	1.28	1.40	1.32	1.15	1.12
Industry, Consumer Services	–	1.11	1.19	1.19	1.17	1.06

Source: Based on data from Lowe's Cos. Inc. Annual Reports

2013 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 9,784 ÷ 7,708 = 1.27

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Lowe's Cos. Inc.'s current ratio deteriorated from 2011 to 2012 and from 2012 to 2013.

	Feb 1, 2013	Feb 3, 2012	Jan 28, 2011	Jan 29, 2010	Jan 30, 2009	Feb 1, 2008
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	541	1,014	652	632	245	281
Short-term investments	125	286	471	425	416	249
Total quick assets	666	1,300	1,123	1,057	661	530
Current liabilities	7,708	7,891	7,119	7,355	8,022	7,751
Quick Ratio, Comparison to Industry
Lowe's Cos. Inc.¹	0.09	0.16	0.16	0.14	0.08	0.07
Industry, Consumer Services	–	0.42	0.46	0.47	0.44	0.40

Source: Based on data from Lowe's Cos. Inc. Annual Reports

2013 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= 666 ÷ 7,708 = 0.09

Ratio	Description	The company
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Lowe's Cos. Inc.'s quick ratio improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.

	Feb 1, 2013	Feb 3, 2012	Jan 28, 2011	Jan 29, 2010	Jan 30, 2009	Feb 1, 2008
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	541	1,014	652	632	245	281
Short-term investments	125	286	471	425	416	249
Total cash assets	666	1,300	1,123	1,057	661	530
Current liabilities	7,708	7,891	7,119	7,355	8,022	7,751
Cash Ratio, Comparison to Industry
Lowe's Cos. Inc.¹	0.09	0.16	0.16	0.14	0.08	0.07
Industry, Consumer Services	–	0.16	0.18	0.20	0.18	0.16

Source: Based on data from Lowe's Cos. Inc. Annual Reports

2013 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= 666 ÷ 7,708 = 0.09

Ratio	Description	The company
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Lowe's Cos. Inc.'s cash ratio improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.