Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Lowe’s Cos. Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2026-01-30), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-08-01), 10-Q (reporting date: 2025-05-02), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-11-01), 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30).
The liquidity position, as indicated by the current, quick, and cash ratios, exhibits fluctuations over the observed period. Generally, the current ratio demonstrates more stability than the quick and cash ratios, while the latter two show considerable variability.
- Current Ratio
- The current ratio generally remained above 1.0 throughout the period, suggesting the company possesses sufficient current assets to cover its current liabilities. A slight dip to 1.02 was observed in January 2022, followed by a recovery. The ratio peaked at 1.26 in July 2022 and August 2023, before trending downwards to 1.01 in May 2025. A slight increase to 1.08 was noted in January 2026. Overall, the current ratio indicates a reasonably consistent ability to meet short-term obligations, though a slight weakening trend is apparent in the later periods.
- Quick Ratio
- The quick ratio demonstrates significantly more volatility. It began at 0.31 in April 2021 and experienced a substantial decline to 0.07 in January 2022. Subsequent recoveries were observed, peaking at 0.26 in August 2024, but were followed by declines again. The ratio remained relatively low throughout the period, indicating a limited ability to meet short-term obligations with the most liquid assets. A notable drop to 0.05 was observed in August 2025, followed by a slight increase to 0.07 in January 2026. This suggests a reliance on inventory to cover current liabilities.
- Cash Ratio
- The cash ratio mirrors the trend of the quick ratio, exhibiting substantial fluctuations and consistently low values. It started at 0.31 in April 2021, decreased to 0.07 in January 2022, and peaked at 0.26 in August 2024. A significant decrease to 0.05 was observed in August 2025, followed by a slight increase to 0.07 in January 2026. The consistently low cash ratio indicates a limited capacity to cover immediate liabilities with cash and cash equivalents. This suggests the company actively utilizes its cash for operations or investments.
In summary, while the current ratio suggests adequate overall liquidity, the quick and cash ratios reveal a more constrained immediate liquidity position. The observed declines in the quick and cash ratios towards the end of the period warrant further investigation to determine the underlying causes and potential implications for short-term financial health.
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Current Ratio
Lowe’s Cos. Inc., current ratio calculation (quarterly data)
| Jan 30, 2026 | Oct 31, 2025 | Aug 1, 2025 | May 2, 2025 | Jan 31, 2025 | Nov 1, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 20,955) | 20,220) | 22,639) | 22,675) | 20,358) | 21,977) | 22,337) | 22,750) | 19,071) | 19,968) | 22,236) | 23,918) | 21,442) | 24,991) | 22,667) | 25,611) | 20,060) | 24,849) | 25,083) | 26,816) | ||||||
| Current liabilities | 19,463) | 19,451) | 21,622) | 22,388) | 18,757) | 19,447) | 18,246) | 19,506) | 15,568) | 16,496) | 17,612) | 19,210) | 19,511) | 20,876) | 20,366) | 21,831) | 19,668) | 20,834) | 21,664) | 22,892) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Current ratio1 | 1.08 | 1.04 | 1.05 | 1.01 | 1.09 | 1.13 | 1.22 | 1.17 | 1.23 | 1.21 | 1.26 | 1.25 | 1.10 | 1.20 | 1.11 | 1.17 | 1.02 | 1.19 | 1.16 | 1.17 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 1.05 | 1.01 | 1.02 | 1.05 | 1.06 | 1.09 | 1.10 | 1.07 | 1.05 | 0.98 | 0.95 | 0.92 | 0.94 | 0.94 | 0.95 | 0.96 | ||||||
| Home Depot Inc. | 1.06 | 1.05 | 1.15 | 1.09 | 1.11 | 1.13 | 1.15 | 1.34 | 1.35 | 1.30 | 1.31 | 1.27 | 1.41 | 1.39 | 1.18 | 1.11 | 1.01 | 1.13 | 1.06 | 1.10 | ||||||
| TJX Cos. Inc. | 1.14 | 1.09 | 1.17 | 1.16 | 1.18 | 1.19 | 1.21 | 1.23 | 1.21 | 1.19 | 1.20 | 1.20 | 1.21 | 1.16 | 1.17 | 1.25 | 1.27 | 1.29 | 1.33 | 1.52 | ||||||
Based on: 10-K (reporting date: 2026-01-30), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-08-01), 10-Q (reporting date: 2025-05-02), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-11-01), 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 20,955 ÷ 19,463 = 1.08
2 Click competitor name to see calculations.
The current ratio for the analyzed period demonstrates fluctuations, generally remaining above 1.0, indicating a consistent ability to cover short-term liabilities with short-term assets. However, a discernible pattern of decline followed by recovery is observed throughout the timeframe.
- Overall Trend
- The current ratio began at 1.17 and experienced a decrease to a low of 1.02 before generally recovering to a range between 1.11 and 1.26. More recently, the ratio has shown another downward trend, falling to 1.08 by the end of the period. This suggests potential shifts in the company’s short-term financial position requiring further investigation.
- Initial Decline (Apr 30, 2021 – Jan 28, 2022)
- From April 2021 to January 2022, the current ratio decreased from 1.17 to 1.02. This decline suggests a relative increase in short-term liabilities compared to short-term assets during this period. The lowest point of 1.02 indicates a reduced margin of safety in covering immediate obligations.
- Recovery Phase (Apr 29, 2022 – Oct 28, 2022)
- Following the low in January 2022, the current ratio exhibited a recovery, peaking at 1.26 in July 2022. This improvement suggests successful management of short-term assets and/or liabilities, potentially through increased asset liquidity or reduced short-term debt. The ratio remained above 1.17 through October 2022.
- Recent Fluctuations (Feb 3, 2023 – Oct 31, 2025)
- From February 2023 onwards, the current ratio has demonstrated increased volatility. While remaining generally above 1.0, it has fluctuated between 1.01 and 1.25. A recent downward trend is apparent, with the ratio decreasing from 1.25 in February 2023 to 1.08 in October 2025. This suggests a renewed pressure on short-term liquidity. The ratio reached a low of 1.01 in May 2025.
- Final Period (Jan 30, 2026 – May 2, 2025)
- The final period shows a slight increase to 1.08 and 1.04, respectively, but remains at the lower end of the observed range. This suggests that while the immediate liquidity position has stabilized somewhat, it has not returned to the levels seen in the earlier recovery phase.
In conclusion, the current ratio indicates a generally healthy, but fluctuating, short-term liquidity position. The observed declines and subsequent recoveries warrant continued monitoring to assess the underlying drivers and potential risks to the company’s ability to meet its short-term obligations.
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Quick Ratio
Lowe’s Cos. Inc., quick ratio calculation (quarterly data)
| Jan 30, 2026 | Oct 31, 2025 | Aug 1, 2025 | May 2, 2025 | Jan 31, 2025 | Nov 1, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 982) | 621) | 4,860) | 3,054) | 1,761) | 3,271) | 4,360) | 3,237) | 921) | 1,210) | 3,494) | 2,950) | 1,348) | 3,192) | 1,482) | 3,414) | 1,133) | 6,121) | 4,835) | 6,692) | ||||||
| Short-term investments | 370) | 412) | 396) | 368) | 372) | 335) | 330) | 264) | 307) | 321) | 374) | 423) | 384) | 464) | 450) | 368) | 271) | 552) | 1,420) | 454) | ||||||
| Receivables, net | 1,090) | 1,216) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total quick assets | 2,442) | 2,249) | 5,256) | 3,422) | 2,133) | 3,606) | 4,690) | 3,501) | 1,228) | 1,531) | 3,868) | 3,373) | 1,732) | 3,656) | 1,932) | 3,782) | 1,404) | 6,673) | 6,255) | 7,146) | ||||||
| Current liabilities | 19,463) | 19,451) | 21,622) | 22,388) | 18,757) | 19,447) | 18,246) | 19,506) | 15,568) | 16,496) | 17,612) | 19,210) | 19,511) | 20,876) | 20,366) | 21,831) | 19,668) | 20,834) | 21,664) | 22,892) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Quick ratio1 | 0.13 | 0.12 | 0.24 | 0.15 | 0.11 | 0.19 | 0.26 | 0.18 | 0.08 | 0.09 | 0.22 | 0.18 | 0.09 | 0.18 | 0.09 | 0.17 | 0.07 | 0.32 | 0.29 | 0.31 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.56 | 0.48 | 0.50 | 0.54 | 0.56 | 0.55 | 0.56 | 0.56 | 0.53 | 0.44 | 0.43 | 0.44 | 0.45 | 0.42 | 0.43 | 0.48 | ||||||
| Home Depot Inc. | 0.22 | 0.25 | 0.28 | 0.23 | 0.23 | 0.25 | 0.25 | 0.34 | 0.32 | 0.25 | 0.27 | 0.22 | 0.26 | 0.26 | 0.18 | 0.22 | 0.20 | 0.32 | 0.30 | 0.37 | ||||||
| TJX Cos. Inc. | 0.51 | 0.38 | 0.46 | 0.45 | 0.53 | 0.44 | 0.54 | 0.55 | 0.59 | 0.42 | 0.49 | 0.53 | 0.59 | 0.35 | 0.40 | 0.49 | 0.64 | 0.65 | 0.77 | 0.95 | ||||||
Based on: 10-K (reporting date: 2026-01-30), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-08-01), 10-Q (reporting date: 2025-05-02), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-11-01), 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,442 ÷ 19,463 = 0.13
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates considerable fluctuation. Initially, the ratio exhibited relative stability, followed by a period of significant volatility and a recent upward trend. Overall, the quick ratio generally remains below 0.5, indicating a potentially limited ability to meet short-term obligations with the most liquid assets.
- Initial Period (Apr 30, 2021 – Oct 29, 2021)
- The quick ratio began at 0.31 and fluctuated between 0.29 and 0.32. This suggests a consistent, though modest, level of liquidity during this timeframe. The values indicate that for every dollar of current liabilities, approximately 30-32 cents of quick assets were available.
- Significant Decline (Jan 28, 2022 – Aug 4, 2023)
- A substantial decrease in the quick ratio is observed, reaching a low of 0.07 in January 2022. The ratio remained suppressed, generally below 0.22, through August 2023. This period reflects a marked reduction in the company’s ability to cover immediate liabilities with highly liquid assets. The decline correlates with a decrease in total quick assets relative to current liabilities.
- Recovery and Recent Trend (Nov 3, 2023 – Aug 1, 2025)
- Beginning in November 2023, the quick ratio began to recover, reaching 0.26 by May 2024. While fluctuations continued, the ratio generally trended upward, peaking at 0.24 in August 2025. This suggests an improvement in the company’s short-term liquidity position. However, the ratio remains variable, dropping to 0.12 in October 2025.
- Latest Values (Oct 31, 2025 – May 2, 2025)
- The most recent values indicate a quick ratio of 0.13 in January 2026 and 0.15 in May 2026. These values are consistent with the fluctuating pattern observed in the recovery period, suggesting that while liquidity has improved from the lows experienced in 2022, it remains sensitive to changes in asset and liability levels.
In summary, the quick ratio demonstrates a period of initial stability, a significant decline, and a subsequent, albeit uneven, recovery. The company’s ability to meet short-term obligations with its most liquid assets has varied considerably over the analyzed period.
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Cash Ratio
Lowe’s Cos. Inc., cash ratio calculation (quarterly data)
| Jan 30, 2026 | Oct 31, 2025 | Aug 1, 2025 | May 2, 2025 | Jan 31, 2025 | Nov 1, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 982) | 621) | 4,860) | 3,054) | 1,761) | 3,271) | 4,360) | 3,237) | 921) | 1,210) | 3,494) | 2,950) | 1,348) | 3,192) | 1,482) | 3,414) | 1,133) | 6,121) | 4,835) | 6,692) | ||||||
| Short-term investments | 370) | 412) | 396) | 368) | 372) | 335) | 330) | 264) | 307) | 321) | 374) | 423) | 384) | 464) | 450) | 368) | 271) | 552) | 1,420) | 454) | ||||||
| Total cash assets | 1,352) | 1,033) | 5,256) | 3,422) | 2,133) | 3,606) | 4,690) | 3,501) | 1,228) | 1,531) | 3,868) | 3,373) | 1,732) | 3,656) | 1,932) | 3,782) | 1,404) | 6,673) | 6,255) | 7,146) | ||||||
| Current liabilities | 19,463) | 19,451) | 21,622) | 22,388) | 18,757) | 19,447) | 18,246) | 19,506) | 15,568) | 16,496) | 17,612) | 19,210) | 19,511) | 20,876) | 20,366) | 21,831) | 19,668) | 20,834) | 21,664) | 22,892) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Cash ratio1 | 0.07 | 0.05 | 0.24 | 0.15 | 0.11 | 0.19 | 0.26 | 0.18 | 0.08 | 0.09 | 0.22 | 0.18 | 0.09 | 0.18 | 0.09 | 0.17 | 0.07 | 0.32 | 0.29 | 0.31 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.56 | 0.48 | 0.50 | 0.54 | 0.56 | 0.55 | 0.56 | 0.56 | 0.53 | 0.44 | 0.43 | 0.44 | 0.45 | 0.42 | 0.43 | 0.48 | ||||||
| Home Depot Inc. | 0.04 | 0.05 | 0.09 | 0.04 | 0.06 | 0.05 | 0.06 | 0.18 | 0.17 | 0.09 | 0.12 | 0.05 | 0.12 | 0.10 | 0.05 | 0.09 | 0.08 | 0.19 | 0.17 | 0.24 | ||||||
| TJX Cos. Inc. | 0.47 | 0.33 | 0.41 | 0.39 | 0.48 | 0.39 | 0.49 | 0.50 | 0.54 | 0.37 | 0.44 | 0.48 | 0.53 | 0.30 | 0.35 | 0.43 | 0.59 | 0.60 | 0.71 | 0.89 | ||||||
Based on: 10-K (reporting date: 2026-01-30), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-08-01), 10-Q (reporting date: 2025-05-02), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-11-01), 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30).
1 Q4 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,352 ÷ 19,463 = 0.07
2 Click competitor name to see calculations.
The cash ratio for the analyzed period demonstrates considerable fluctuation. Initially, the ratio exhibited relative stability, followed by a period of significant volatility and a recent upward trend. Overall, the company’s ability to meet its short-term obligations with only cash assets has varied substantially over the observed timeframe.
- Initial Period (Apr 30, 2021 – Oct 29, 2021)
- The cash ratio began at 0.31 and remained relatively consistent, oscillating between 0.29 and 0.32. This suggests a moderate, stable capacity to cover current liabilities with available cash during this period.
- Significant Decline (Jan 28, 2022 – Aug 4, 2023)
- A marked decrease in the cash ratio is observed starting in January 2022, plummeting to a low of 0.07. The ratio remained suppressed, generally below 0.22, throughout this period, indicating a substantially reduced ability to cover short-term liabilities with cash. This decline coincided with fluctuations in total cash assets and current liabilities.
- Recovery and Volatility (Nov 3, 2023 – Oct 31, 2025)
- Beginning in November 2023, the cash ratio began to recover, reaching 0.26 in May 2024. However, this was followed by further volatility, with the ratio decreasing to 0.05 by October 2025. This period demonstrates an inconsistent pattern, suggesting potential shifts in liquidity management or operational needs.
- Recent Trend (Jan 30, 2026 – May 2, 2025)
- The most recent observations indicate a slight upward trend, with the cash ratio increasing from 0.07 to 0.24. While still exhibiting variability, this suggests a potential improvement in the company’s immediate liquidity position. The ratio currently stands at 0.24 as of May 2, 2025.
The substantial fluctuations in the cash ratio warrant further investigation into the underlying drivers of these changes. Analyzing the components – total cash assets and current liabilities – in conjunction with other liquidity metrics would provide a more comprehensive understanding of the company’s short-term financial health.
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