Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Lowe’s Cos. Inc. (NYSE:LOW)

Analysis of Debt

Advanced level

Total Debt (Carrying Amount)

Lowe’s Cos. Inc., balance sheet: debt

US$ in millions

Microsoft Excel LibreOffice Calc
Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016
Short-term borrowings —  1,941  722  1,137  510  43 
Current maturities of long-term debt 1,112  597  1,110  294  795  1,061 
Long-term debt, excluding current maturities 20,668  16,768  14,391  15,564  14,394  11,545 
Total debt, including finance or capitalized lease obligations (carrying amount) 21,780  19,306  16,223  16,995  15,699  12,649 

Based on: 10-K (filing date: 2021-03-22), 10-K (filing date: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29).

Debt item Description The company
Total debt, including finance or capitalized 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.’s total debt increased from 2019 to 2020 and from 2020 to 2021.

Total Debt (Fair Value)

Microsoft Excel LibreOffice Calc
Jan 29, 2021
Selected Financial Data (US$ in millions)
Short-term borrowings — 
Long-term debt, excluding finance or capitalized lease obligations 24,354 
Finance or capitalized lease obligations 654 
Total debt, including finance or capitalized lease obligations (fair value) 25,008 
Financial Ratio
Debt, fair value to carrying amount ratio 1.15

Based on: 10-K (filing date: 2021-03-22).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 3.74%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
5.03% — 
3.59% 4,225  152 
3.19% 8,478  270 
5.50% 341  19 
5.74% 1,052  60 
4.61% 1,461  67 
3.78% 5,564  210 
5.34% 650  35 
Total 21,776  814 
3.74%

Based on: 10-K (filing date: 2021-03-22).

1 US$ in millions

2 Weighted-average interest rate = 100 × 814 ÷ 21,776 = 3.74%


Interest Costs Incurred

Lowe’s Cos. Inc., interest costs incurred

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016
Interest expense 872  718  652  649  657  556 
Interest capitalized — 
Interest costs incurred 872  719  655  654  661  559 

Based on: 10-K (filing date: 2021-03-22), 10-K (filing date: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29).

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.’s interest expense increased from 2019 to 2020 and from 2020 to 2021.
Interest capitalized Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Lowe’s Cos. Inc.’s interest capitalized decreased from 2019 to 2020 and from 2020 to 2021.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Lowe’s Cos. Inc.’s interest costs incurred increased from 2019 to 2020 and from 2020 to 2021.

Adjusted Interest Coverage Ratio

Microsoft Excel LibreOffice Calc
Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016
Selected Financial Data (US$ in millions)
Net earnings 5,835  4,281  2,314  3,447  3,093  2,546 
Add: Income tax expense 1,904  1,342  1,080  2,042  2,108  1,873 
Add: Interest expense, net of amount capitalized 872  718  652  649  657  556 
Earnings before interest and tax (EBIT) 8,611  6,341  4,046  6,138  5,858  4,975 
 
Interest costs incurred 872  719  655  654  661  559 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 9.88 8.83 6.21 9.46 8.92 8.95
Adjusted interest coverage ratio (with capitalized interest)2 9.88 8.82 6.18 9.39 8.86 8.90

Based on: 10-K (filing date: 2021-03-22), 10-K (filing date: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29).

2021 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of amount capitalized
= 8,611 ÷ 872 = 9.88

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 8,611 ÷ 872 = 9.88


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.’s adjusted interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.