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-Q (reporting date: 2026-07-31), 10-Q (reporting date: 2026-05-01), 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 profile exhibits a pattern of cyclical fluctuation, characterized by a current ratio that consistently remains above 1.0, alongside significantly lower quick and cash ratios. This disparity indicates a substantial reliance on inventory to meet short-term obligations.
- Current Ratio
- The current ratio fluctuated between a peak of 1.26 in August 2023 and a low of 1.01 in May 2025. While the ratio generally indicates sufficient coverage of current liabilities, a gradual softening is observed toward the latter half of the observed period, with recent values stabilizing between 1.08 and 1.10 by July 2026.
- Quick Ratio
- The quick ratio exhibits higher volatility and lower overall levels, dropping sharply to 0.07 in January 2022 before oscillating between 0.08 and 0.26. The persistent and wide gap between the current ratio and the quick ratio confirms that inventory constitutes the primary component of current assets.
- Cash Ratio
- For the majority of the period, the cash ratio remained identical to the quick ratio, suggesting a negligible amount of accounts receivable. A divergence emerged starting in October 2025, where the cash ratio fell below the quick ratio, indicating an increase in other liquid assets, such as receivables, during the final quarters of the period.
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Current Ratio
Lowe’s Cos. Inc., current ratio calculation (quarterly data)
| Jul 31, 2026 | May 1, 2026 | 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 | 23,342) | 22,162) | 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 | 21,132) | 20,274) | 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 | 1.10 | 1.09 | 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. | — | — | — | — | 1.03 | 1.18 | 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. | 1.08 | 1.04 | 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. | 1.15 | 1.14 | 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-Q (reporting date: 2026-07-31), 10-Q (reporting date: 2026-05-01), 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 Q2 2027 Calculation
Current ratio = Current assets ÷ Current liabilities
= 23,342 ÷ 21,132 = 1.10
2 Click competitor name to see calculations.
The liquidity position of the organization demonstrates a consistent ability to cover short-term obligations, as the current ratio remains above 1.0 throughout the entire period from April 2021 to July 2026. While the ratio exhibits cyclical volatility, the overall trend indicates a stable management of working capital.
- Liquidity Trend Analysis
- A period of relative stability was observed between April 2021 and October 2022, with the current ratio fluctuating between a low of 1.02 in January 2022 and a peak of 1.20 in October 2022. This phase reflects a balanced alignment between current assets and current liabilities.
- Peak Liquidity Period
- The highest levels of liquidity were recorded during 2023, with the ratio reaching its maximum value of 1.26 in August 2023. This increase was driven by a combination of stabilizing current assets and a significant reduction in current liabilities, which dropped to a period low of 15,568 million US$ by February 2024.
- Recent Contraction and Recovery
- A downward trend emerged in late 2024 and early 2025, resulting in a liquidity trough of 1.01 in May 2025. This decline coincided with a sharp increase in current liabilities to 22,388 million US$ in January 2025. Following this low, a gradual recovery is evident through 2026, with the ratio returning to 1.10 by July 2026.
The analysis indicates that while current assets have fluctuated between approximately 19,000 million US$ and 26,800 million US$, the company has successfully avoided any liquidity crises. The periodic dips toward 1.00 suggest a lean approach to current asset management, while the recovery toward 1.10 reflects a restoration of the liquidity buffer.
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Quick Ratio
Lowe’s Cos. Inc., quick ratio calculation (quarterly data)
| Jul 31, 2026 | May 1, 2026 | Jan 30, 2026 | Oct 31, 2025 | Aug 1, 2025 | May 2, 2025 | Jan 31, 2025 | Nov 1, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 3,172) | 786) | 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 | 235) | 458) | 370) | 412) | 396) | 368) | 372) | 335) | 330) | 264) | 307) | 321) | 374) | 423) | 384) | 464) | 450) | 368) | 271) | 552) | 1,420) | 454) | |||||||
| Receivables, net | 1,238) | 1,151) | 1,090) | 1,216) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total quick assets | 4,645) | 2,395) | 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 | 21,132) | 20,274) | 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 | 0.22 | 0.12 | 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. | — | — | — | — | 0.51 | 0.66 | 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. | 0.26 | 0.23 | 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. | 0.50 | 0.48 | 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-Q (reporting date: 2026-07-31), 10-Q (reporting date: 2026-05-01), 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 Q2 2027 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,645 ÷ 21,132 = 0.22
2 Click competitor name to see calculations.
The analysis of the quick ratio from April 2021 through July 2026 reveals a consistent pattern of low immediate liquidity, with values remaining significantly below the 1.0 threshold across all reported quarters. This suggests a structural reliance on inventory turnover or other financing mechanisms to meet short-term obligations, as liquid assets alone are insufficient to cover current liabilities.
- Quick Asset Volatility
- Total quick assets exhibit substantial quarterly fluctuations, reaching a peak of US$ 7,146 million in April 2021 and dropping to a minimum of US$ 1,228 million in February 2024. These swings indicate a cyclical approach to the management of cash and cash equivalents.
- Current Liability Trends
- Current liabilities remained relatively stable compared to quick assets, generally oscillating between US$ 15,568 million and US$ 22,892 million. A gradual downward trend was observed from April 2021 through February 2024, followed by a stabilization period where liabilities consistently hovered around the US$ 20,000 million mark.
- Quick Ratio Cyclicality
- The quick ratio demonstrates a recurring seasonal pattern. Peaks are frequently observed during the second and third quarters, such as the 0.26 recorded in May 2024 and 0.24 in August 2025. Conversely, significant troughs typically occur in the first quarter of the year, with notable lows of 0.07 in January 2022 and 0.08 in February 2024.
- Long-term Liquidity Position
- Throughout the analyzed period, the quick ratio failed to exceed 0.32. The persistence of this low ratio indicates that the organization maintains a lean liquid asset position relative to its short-term debt, a characteristic often associated with high-volume retail operations that prioritize inventory velocity over cash reserves.
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Cash Ratio
Lowe’s Cos. Inc., cash ratio calculation (quarterly data)
| Jul 31, 2026 | May 1, 2026 | 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 | 3,172) | 786) | 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 | 235) | 458) | 370) | 412) | 396) | 368) | 372) | 335) | 330) | 264) | 307) | 321) | 374) | 423) | 384) | 464) | 450) | 368) | 271) | 552) | 1,420) | 454) | |||||||
| Total cash assets | 3,407) | 1,244) | 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 | 21,132) | 20,274) | 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 | 0.16 | 0.06 | 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. | — | — | — | — | 0.51 | 0.66 | 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. | 0.06 | 0.04 | 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. | 0.45 | 0.43 | 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-Q (reporting date: 2026-07-31), 10-Q (reporting date: 2026-05-01), 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 Q2 2027 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,407 ÷ 21,132 = 0.16
2 Click competitor name to see calculations.
The cash ratio demonstrates a high degree of volatility over the analyzed period, characterized by recurring cyclical fluctuations and a general decline from initial baseline levels. While current liabilities have remained relatively stable, ranging between approximately 15.5 billion and 22.9 billion USD, total cash assets have experienced sharp variances, which serve as the primary driver for the instability of the liquidity ratio.
- Cash Ratio Volatility and Trends
- The analysis begins with a relatively higher liquidity position, where the cash ratio peaked at 0.32 in October 2021. A significant contraction followed in January 2022, with the ratio dropping to 0.07. Throughout the subsequent years, the ratio exhibited a fluctuating pattern, oscillating between lows of 0.08 and peaks of 0.26. A notable period of heightened volatility is observed between October 2025 and May 2026, during which the ratio reached its minimum value of 0.05 before recovering to 0.16 by July 2026.
- Correlation Between Assets and Liabilities
- The observed fluctuations in the cash ratio are primarily attributed to significant shifts in total cash assets rather than systemic changes in current liabilities. For example, the increase in the ratio to 0.24 in August 2025 was driven by cash assets rising to 5.25 billion USD. Conversely, the subsequent decline to 0.05 in October 2025 coincided with a sharp reduction in cash assets to 1.03 billion USD, while current liabilities remained relatively constant at approximately 19.4 billion USD.
- Liquidity Pattern Analysis
- A recurring cyclical pattern is evident, as the cash ratio frequently dips below 0.10 and subsequently recovers. This suggests a pattern of cash management where immediate liquidity is minimized at specific intervals and replenished in others. The inability to maintain a consistent ratio above 0.20 after the initial period of 2021 indicates a shift toward a leaner immediate liquidity profile.
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