Paying users zone. Data is covered by 
.
Get 1 month access to Lowe’s Cos. Inc. for $17.99, or
get full access to entire website for at least 3 months from $49.99.
We accept:
Lowe’s Cos. Inc. (LOW)
Long-term Debt and Solvency Analysis
Difficulty: Beginner
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Ratios (Summary)
Lowe’s Cos. Inc., debt and solvency ratios
Based on: 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), 10-K (filing date: 2015-03-31), 10-K (filing date: 2014-03-31).
| Ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Lowe’s Cos. Inc.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Lowe’s Cos. Inc.’s debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Lowe’s Cos. Inc.’s debt to assets ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Lowe’s Cos. Inc.’s financial leverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Lowe’s Cos. Inc.’s interest coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Lowe’s Cos. Inc.’s fixed charge coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Equity
Lowe’s Cos. Inc., debt to equity calculation, comparison to benchmarks
| Feb 1, 2019 | Feb 2, 2018 | Feb 3, 2017 | Jan 29, 2016 | Jan 30, 2015 | Jan 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Short-term borrowings | |
|
|
|
|
|
|
| Current maturities of long-term debt | |
|
|
|
|
|
|
| Long-term debt, excluding current maturities | |
|
|
|
|
|
|
| Total debt | |
|
|
|
|
|
|
| Shareholders’ equity | |
|
|
|
|
|
|
| Ratio | |||||||
| Debt to equity1 | |
|
|
|
|
|
|
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Amazon.com Inc. | |
|
|
|
|
|
|
| Costco Wholesale Corp. | |
|
|
|
|
|
|
| eBay Inc. | |
|
|
|
|
|
|
| Home Depot Inc. | |
|
|
|
|
|
|
| Netflix Inc. | |
|
|
|
|
|
|
| Target Corp. | |
|
|
|
|
|
|
| TJX Cos. Inc. | |
|
|
|
|
|
|
| Walmart Inc. | |
|
|
|
|
|
|
| Debt to Equity, Sector | |||||||
| General Retailers | |
|
|
|
|
|
|
| Debt to Equity, Industry | |||||||
| Consumer Services | |
|
|
|
|
|
|
Based on: 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), 10-K (filing date: 2015-03-31), 10-K (filing date: 2014-03-31).
1 2019 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Lowe’s Cos. Inc.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Capital
Lowe’s Cos. Inc., debt to capital calculation, comparison to benchmarks
| Feb 1, 2019 | Feb 2, 2018 | Feb 3, 2017 | Jan 29, 2016 | Jan 30, 2015 | Jan 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Short-term borrowings | |
|
|
|
|
|
|
| Current maturities of long-term debt | |
|
|
|
|
|
|
| Long-term debt, excluding current maturities | |
|
|
|
|
|
|
| Total debt | |
|
|
|
|
|
|
| Shareholders’ equity | |
|
|
|
|
|
|
| Total capital | |
|
|
|
|
|
|
| Ratio | |||||||
| Debt to capital1 | |
|
|
|
|
|
|
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Amazon.com Inc. | |
|
|
|
|
|
|
| Costco Wholesale Corp. | |
|
|
|
|
|
|
| eBay Inc. | |
|
|
|
|
|
|
| Home Depot Inc. | |
|
|
|
|
|
|
| Netflix Inc. | |
|
|
|
|
|
|
| Target Corp. | |
|
|
|
|
|
|
| TJX Cos. Inc. | |
|
|
|
|
|
|
| Walmart Inc. | |
|
|
|
|
|
|
| Debt to Capital, Sector | |||||||
| General Retailers | |
|
|
|
|
|
|
| Debt to Capital, Industry | |||||||
| Consumer Services | |
|
|
|
|
|
|
Based on: 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), 10-K (filing date: 2015-03-31), 10-K (filing date: 2014-03-31).
1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Lowe’s Cos. Inc.’s debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Assets
Lowe’s Cos. Inc., debt to assets calculation, comparison to benchmarks
| Feb 1, 2019 | Feb 2, 2018 | Feb 3, 2017 | Jan 29, 2016 | Jan 30, 2015 | Jan 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Short-term borrowings | |
|
|
|
|
|
|
| Current maturities of long-term debt | |
|
|
|
|
|
|
| Long-term debt, excluding current maturities | |
|
|
|
|
|
|
| Total debt | |
|
|
|
|
|
|
| Total assets | |
|
|
|
|
|
|
| Ratio | |||||||
| Debt to assets1 | |
|
|
|
|
|
|
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Amazon.com Inc. | |
|
|
|
|
|
|
| Costco Wholesale Corp. | |
|
|
|
|
|
|
| eBay Inc. | |
|
|
|
|
|
|
| Home Depot Inc. | |
|
|
|
|
|
|
| Netflix Inc. | |
|
|
|
|
|
|
| Target Corp. | |
|
|
|
|
|
|
| TJX Cos. Inc. | |
|
|
|
|
|
|
| Walmart Inc. | |
|
|
|
|
|
|
| Debt to Assets, Sector | |||||||
| General Retailers | |
|
|
|
|
|
|
| Debt to Assets, Industry | |||||||
| Consumer Services | |
|
|
|
|
|
|
Based on: 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), 10-K (filing date: 2015-03-31), 10-K (filing date: 2014-03-31).
1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Lowe’s Cos. Inc.’s debt to assets ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Financial Leverage
Lowe’s Cos. Inc., financial leverage calculation, comparison to benchmarks
| Feb 1, 2019 | Feb 2, 2018 | Feb 3, 2017 | Jan 29, 2016 | Jan 30, 2015 | Jan 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Total assets | |
|
|
|
|
|
|
| Shareholders’ equity | |
|
|
|
|
|
|
| Ratio | |||||||
| Financial leverage1 | |
|
|
|
|
|
|
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Amazon.com Inc. | |
|
|
|
|
|
|
| Costco Wholesale Corp. | |
|
|
|
|
|
|
| eBay Inc. | |
|
|
|
|
|
|
| Home Depot Inc. | |
|
|
|
|
|
|
| Netflix Inc. | |
|
|
|
|
|
|
| Target Corp. | |
|
|
|
|
|
|
| TJX Cos. Inc. | |
|
|
|
|
|
|
| Walmart Inc. | |
|
|
|
|
|
|
| Financial Leverage, Sector | |||||||
| General Retailers | |
|
|
|
|
|
|
| Financial Leverage, Industry | |||||||
| Consumer Services | |
|
|
|
|
|
|
Based on: 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), 10-K (filing date: 2015-03-31), 10-K (filing date: 2014-03-31).
1 2019 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Lowe’s Cos. Inc.’s financial leverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Interest Coverage
Lowe’s Cos. Inc., interest coverage calculation, comparison to benchmarks
| Feb 1, 2019 | Feb 2, 2018 | Feb 3, 2017 | Jan 29, 2016 | Jan 30, 2015 | Jan 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Net earnings | |
|
|
|
|
|
|
| Add: Income tax expense | |
|
|
|
|
|
|
| Add: Interest expense, net of amount capitalized | |
|
|
|
|
|
|
| Earnings before interest and tax (EBIT) | |
|
|
|
|
|
|
| Ratio | |||||||
| Interest coverage1 | |
|
|
|
|
|
|
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Amazon.com Inc. | |
|
|
|
|
|
|
| Costco Wholesale Corp. | |
|
|
|
|
|
|
| eBay Inc. | |
|
|
|
|
|
|
| Home Depot Inc. | |
|
|
|
|
|
|
| Netflix Inc. | |
|
|
|
|
|
|
| Target Corp. | |
|
|
|
|
|
|
| TJX Cos. Inc. | |
|
|
|
|
|
|
| Walmart Inc. | |
|
|
|
|
|
|
| Interest Coverage, Sector | |||||||
| General Retailers | |
|
|
|
|
|
|
| Interest Coverage, Industry | |||||||
| Consumer Services | |
|
|
|
|
|
|
Based on: 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), 10-K (filing date: 2015-03-31), 10-K (filing date: 2014-03-31).
1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Lowe’s Cos. Inc.’s interest coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Fixed Charge Coverage
Lowe’s Cos. Inc., fixed charge coverage calculation, comparison to benchmarks
| Feb 1, 2019 | Feb 2, 2018 | Feb 3, 2017 | Jan 29, 2016 | Jan 30, 2015 | Jan 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Net earnings | |
|
|
|
|
|
|
| Add: Income tax expense | |
|
|
|
|
|
|
| Add: Interest expense, net of amount capitalized | |
|
|
|
|
|
|
| Earnings before interest and tax (EBIT) | |
|
|
|
|
|
|
| Add: Rental expenses under operating leases | |
|
|
|
|
|
|
| Earnings before fixed charges and tax | |
|
|
|
|
|
|
| Interest expense, net of amount capitalized | |
|
|
|
|
|
|
| Rental expenses under operating leases | |
|
|
|
|
|
|
| Fixed charges | |
|
|
|
|
|
|
| Ratio | |||||||
| Fixed charge coverage1 | |
|
|
|
|
|
|
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Amazon.com Inc. | |
|
|
|
|
|
|
| Costco Wholesale Corp. | |
|
|
|
|
|
|
| eBay Inc. | |
|
|
|
|
|
|
| Home Depot Inc. | |
|
|
|
|
|
|
| Netflix Inc. | |
|
|
|
|
|
|
| Target Corp. | |
|
|
|
|
|
|
| TJX Cos. Inc. | |
|
|
|
|
|
|
| Walmart Inc. | |
|
|
|
|
|
|
| Fixed Charge Coverage, Sector | |||||||
| General Retailers | |
|
|
|
|
|
|
| Fixed Charge Coverage, Industry | |||||||
| Consumer Services | |
|
|
|
|
|
|
Based on: 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), 10-K (filing date: 2015-03-31), 10-K (filing date: 2014-03-31).
1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Lowe’s Cos. Inc.’s fixed charge coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |