Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

$24.99

Debt to Equity
since 2005

Microsoft Excel

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Calculation

Lowe’s Cos. Inc., debt to equity, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03), 10-K (reporting date: 2016-01-29), 10-K (reporting date: 2015-01-30), 10-K (reporting date: 2014-01-31), 10-K (reporting date: 2013-02-01), 10-K (reporting date: 2012-02-03), 10-K (reporting date: 2011-01-28), 10-K (reporting date: 2010-01-29), 10-K (reporting date: 2009-01-30), 10-K (reporting date: 2008-02-01), 10-K (reporting date: 2007-02-02), 10-K (reporting date: 2006-02-03), 10-K (reporting date: 2005-01-28).

1 US$ in millions


The analysis of the financial data reveals several important trends for the period under consideration.

Total Debt
Total debt showed a general upward trend over the years, starting from $3,690 million in early 2005 and reaching a peak of $35,960 million in early 2023. After this peak, a slight decline to $35,487 million occurred by early 2025. The increase in total debt was particularly steep from 2015 onward, indicating a possible expansion or increased leverage strategy during this timeframe.
Shareholders’ Equity (Deficit)
Shareholders’ equity initially increased from $11,535 million in 2005 to $19,069 million in 2010. However, from 2010 onward, it showed a consistent declining pattern, turning negative by 2022, with values such as -$4,816 million in 2022, further deteriorating to -$14,231 million by early 2025. This negative trend is suggestive of accumulating losses or significant reductions in equity base over the last several years.
Debt to Equity Ratio
The debt to equity ratio mirrored the inverse relationship between total debt and shareholders’ equity. The ratio was relatively low and stable between 2005 and 2010, ranging from 0.25 to 0.41. Post-2010, it increased sharply, reaching a high of 15.16 by 2021, before data became unavailable in subsequent periods. This sharp increase reflects the combination of rising debt and diminishing equity, indicating increased financial risk and higher leverage.

In summary, the financial structure shifted from a moderate leverage position with positive equity to a highly leveraged and financially riskier position characterized by negative equity and high debt levels. This evolution suggests heightened financial stress or strategic shifts that warrant further investigation into operational performance, profitability, and cash flow generation during the same period.


Comparison to Competitors


Comparison to Sector (Consumer Discretionary Distribution & Retail)

Lowe’s Cos. Inc., debt to equity, long-term trends, comparison to sector (consumer discretionary distribution & retail)

Microsoft Excel

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03), 10-K (reporting date: 2016-01-29), 10-K (reporting date: 2015-01-30), 10-K (reporting date: 2014-01-31), 10-K (reporting date: 2013-02-01), 10-K (reporting date: 2012-02-03), 10-K (reporting date: 2011-01-28), 10-K (reporting date: 2010-01-29), 10-K (reporting date: 2009-01-30), 10-K (reporting date: 2008-02-01), 10-K (reporting date: 2007-02-02), 10-K (reporting date: 2006-02-03), 10-K (reporting date: 2005-01-28).


Comparison to Industry (Consumer Discretionary)