Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Lowe’s Cos. Inc., solvency ratios

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Debt Ratios
Debt to equity 15.16 9.79 4.45 2.89 2.44
Debt to equity (including operating lease liability) 18.24 12.04 4.45 2.89 2.44
Debt to capital 1.24 0.94 0.91 0.82 0.74 0.71
Debt to capital (including operating lease liability) 1.20 0.95 0.92 0.82 0.74 0.71
Debt to assets 0.55 0.47 0.49 0.47 0.48 0.46
Debt to assets (including operating lease liability) 0.66 0.56 0.60 0.47 0.48 0.46
Financial leverage 32.52 20.02 9.47 6.01 5.35
Coverage Ratios
Interest coverage 13.49 9.88 8.83 6.21 9.46 8.92
Fixed charge coverage 8.02 6.05 5.04 3.68 5.31 5.31

Based on: 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).

Solvency 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. debt to capital ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Lowe’s Cos. Inc. debt to capital ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Lowe’s Cos. Inc. debt to assets ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Lowe’s Cos. Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Lowe’s Cos. Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Lowe’s Cos. Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022.

Debt to Equity

Lowe’s Cos. Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings —  —  1,941  722  1,137  510 
Current maturities of long-term debt 868  1,112  597  1,110  294  795 
Long-term debt, excluding current maturities 23,859  20,668  16,768  14,391  15,564  14,394 
Total debt 24,727  21,780  19,306  16,223  16,995  15,699 
 
Shareholders’ equity (deficit) (4,816) 1,437  1,972  3,644  5,873  6,434 
Solvency Ratio
Debt to equity1 15.16 9.79 4.45 2.89 2.44
Benchmarks
Debt to Equity, Competitors2
Amazon.com Inc. 0.54 0.66 0.83 0.97 1.41
Booking Holdings Inc. 1.77 2.46 1.45 0.98 0.85
Dollar Tree Inc. 0.44 0.44 0.60 0.76 0.79 1.17
Home Depot Inc. 11.29 18.59 5.45
Target Corp. 1.07 0.88 0.97 1.00 0.99 1.16
Ulta Beauty Inc. 0.00 0.00 0.00 0.00 0.00 0.00
Debt to Equity, Sector
Retailing 0.92 1.19 1.37 1.40 1.58
Debt to Equity, Industry
Consumer Discretionary 1.55 2.25 2.39 2.31 2.28

Based on: 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).

1 2022 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 24,727 ÷ -4,816 =

2 Click competitor name to see calculations.


Debt to Equity (including Operating Lease Liability)

Lowe’s Cos. Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings —  —  1,941  722  1,137  510 
Current maturities of long-term debt 868  1,112  597  1,110  294  795 
Long-term debt, excluding current maturities 23,859  20,668  16,768  14,391  15,564  14,394 
Total debt 24,727  21,780  19,306  16,223  16,995  15,699 
Current operating lease liabilities 636  541  501  —  —  — 
Noncurrent operating lease liabilities 4,021  3,890  3,943  —  —  — 
Total debt (including operating lease liability) 29,384  26,211  23,750  16,223  16,995  15,699 
 
Shareholders’ equity (deficit) (4,816) 1,437  1,972  3,644  5,873  6,434 
Solvency Ratio
Debt to equity (including operating lease liability)1 18.24 12.04 4.45 2.89 2.44
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Amazon.com Inc. 0.96 1.08 1.25 0.97 1.41
Booking Holdings Inc. 1.85 2.56 1.56 0.98 0.85
Dollar Tree Inc. 1.29 1.32 1.60 0.76 0.79 1.17
Home Depot Inc. 13.16 18.59 5.45
Target Corp. 1.28 1.05 1.18 1.19 0.99 1.16
Ulta Beauty Inc. 1.20 0.95 1.02 0.00 0.00 0.00
Debt to Equity (including Operating Lease Liability), Sector
Retailing 1.39 1.71 1.69 1.40 1.58
Debt to Equity (including Operating Lease Liability), Industry
Consumer Discretionary 1.90 2.65 2.63 2.31 2.28

Based on: 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).

1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity (deficit)
= 29,384 ÷ -4,816 =

2 Click competitor name to see calculations.


Debt to Capital

Lowe’s Cos. Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings —  —  1,941  722  1,137  510 
Current maturities of long-term debt 868  1,112  597  1,110  294  795 
Long-term debt, excluding current maturities 23,859  20,668  16,768  14,391  15,564  14,394 
Total debt 24,727  21,780  19,306  16,223  16,995  15,699 
Shareholders’ equity (deficit) (4,816) 1,437  1,972  3,644  5,873  6,434 
Total capital 19,911  23,217  21,278  19,867  22,868  22,133 
Solvency Ratio
Debt to capital1 1.24 0.94 0.91 0.82 0.74 0.71
Benchmarks
Debt to Capital, Competitors2
Amazon.com Inc. 0.35 0.40 0.45 0.49 0.59
Booking Holdings Inc. 0.64 0.71 0.59 0.50 0.46
Dollar Tree Inc. 0.31 0.31 0.38 0.43 0.44 0.54
Home Depot Inc. 1.04 0.92 1.11 1.07 0.95 0.84
Target Corp. 0.52 0.47 0.49 0.50 0.50 0.54
Ulta Beauty Inc. 0.00 0.00 0.00 0.00 0.00 0.00
Debt to Capital, Sector
Retailing 0.48 0.54 0.58 0.58 0.61
Debt to Capital, Industry
Consumer Discretionary 0.61 0.69 0.70 0.70 0.70

Based on: 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).

1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 24,727 ÷ 19,911 = 1.24

2 Click competitor name to see calculations.

Solvency 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. debt to capital ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Debt to Capital (including Operating Lease Liability)

Lowe’s Cos. Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings —  —  1,941  722  1,137  510 
Current maturities of long-term debt 868  1,112  597  1,110  294  795 
Long-term debt, excluding current maturities 23,859  20,668  16,768  14,391  15,564  14,394 
Total debt 24,727  21,780  19,306  16,223  16,995  15,699 
Current operating lease liabilities 636  541  501  —  —  — 
Noncurrent operating lease liabilities 4,021  3,890  3,943  —  —  — 
Total debt (including operating lease liability) 29,384  26,211  23,750  16,223  16,995  15,699 
Shareholders’ equity (deficit) (4,816) 1,437  1,972  3,644  5,873  6,434 
Total capital (including operating lease liability) 24,568  27,648  25,722  19,867  22,868  22,133 
Solvency Ratio
Debt to capital (including operating lease liability)1 1.20 0.95 0.92 0.82 0.74 0.71
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Amazon.com Inc. 0.49 0.52 0.56 0.49 0.59
Booking Holdings Inc. 0.65 0.72 0.61 0.50 0.46
Dollar Tree Inc. 0.56 0.57 0.62 0.43 0.44 0.54
Home Depot Inc. 1.04 0.93 1.09 1.07 0.95 0.84
Target Corp. 0.56 0.51 0.54 0.54 0.50 0.54
Ulta Beauty Inc. 0.55 0.49 0.50 0.00 0.00 0.00
Debt to Capital (including Operating Lease Liability), Sector
Retailing 0.58 0.63 0.63 0.58 0.61
Debt to Capital (including Operating Lease Liability), Industry
Consumer Discretionary 0.65 0.73 0.72 0.70 0.70

Based on: 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).

1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 29,384 ÷ 24,568 = 1.20

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Lowe’s Cos. Inc. debt to capital ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022.

Debt to Assets

Lowe’s Cos. Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings —  —  1,941  722  1,137  510 
Current maturities of long-term debt 868  1,112  597  1,110  294  795 
Long-term debt, excluding current maturities 23,859  20,668  16,768  14,391  15,564  14,394 
Total debt 24,727  21,780  19,306  16,223  16,995  15,699 
 
Total assets 44,640  46,735  39,471  34,508  35,291  34,408 
Solvency Ratio
Debt to assets1 0.55 0.47 0.49 0.47 0.48 0.46
Benchmarks
Debt to Assets, Competitors2
Amazon.com Inc. 0.18 0.19 0.23 0.26 0.30
Booking Holdings Inc. 0.46 0.55 0.40 0.38 0.37
Dollar Tree Inc. 0.16 0.16 0.19 0.32 0.35 0.40
Home Depot Inc. 0.56 0.53 0.61 0.66 0.61 0.55
Target Corp. 0.25 0.25 0.27 0.27 0.30 0.34
Ulta Beauty Inc. 0.00 0.00 0.00 0.00 0.00 0.00
Debt to Assets, Sector
Retailing 0.25 0.28 0.32 0.35 0.37
Debt to Assets, Industry
Consumer Discretionary 0.37 0.42 0.44 0.46 0.46

Based on: 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).

1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 24,727 ÷ 44,640 = 0.55

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Lowe’s Cos. Inc. debt to assets ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Debt to Assets (including Operating Lease Liability)

Lowe’s Cos. Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings —  —  1,941  722  1,137  510 
Current maturities of long-term debt 868  1,112  597  1,110  294  795 
Long-term debt, excluding current maturities 23,859  20,668  16,768  14,391  15,564  14,394 
Total debt 24,727  21,780  19,306  16,223  16,995  15,699 
Current operating lease liabilities 636  541  501  —  —  — 
Noncurrent operating lease liabilities 4,021  3,890  3,943  —  —  — 
Total debt (including operating lease liability) 29,384  26,211  23,750  16,223  16,995  15,699 
 
Total assets 44,640  46,735  39,471  34,508  35,291  34,408 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.66 0.56 0.60 0.47 0.48 0.46
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Amazon.com Inc. 0.31 0.31 0.34 0.26 0.30
Booking Holdings Inc. 0.48 0.57 0.43 0.38 0.37
Dollar Tree Inc. 0.46 0.47 0.51 0.32 0.35 0.40
Home Depot Inc. 0.64 0.62 0.73 0.66 0.61 0.55
Target Corp. 0.31 0.29 0.33 0.33 0.30 0.34
Ulta Beauty Inc. 0.39 0.37 0.40 0.00 0.00 0.00
Debt to Assets (including Operating Lease Liability), Sector
Retailing 0.38 0.40 0.39 0.35 0.37
Debt to Assets (including Operating Lease Liability), Industry
Consumer Discretionary 0.45 0.49 0.48 0.46 0.46

Based on: 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).

1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 29,384 ÷ 44,640 = 0.66

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Lowe’s Cos. Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Financial Leverage

Lowe’s Cos. Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Selected Financial Data (US$ in millions)
Total assets 44,640  46,735  39,471  34,508  35,291  34,408 
Shareholders’ equity (deficit) (4,816) 1,437  1,972  3,644  5,873  6,434 
Solvency Ratio
Financial leverage1 32.52 20.02 9.47 6.01 5.35
Benchmarks
Financial Leverage, Competitors2
Amazon.com Inc. 3.04 3.44 3.63 3.73 4.74
Booking Holdings Inc. 3.83 4.47 3.61 2.58 2.26
Dollar Tree Inc. 2.81 2.84 3.13 2.39 2.27 2.91
Home Depot Inc. 21.39 30.63 9.92
Target Corp. 4.20 3.55 3.62 3.65 3.33 3.42
Ulta Beauty Inc. 3.10 2.55 2.56 1.75 1.64 1.65
Financial Leverage, Sector
Retailing 3.69 4.28 4.33 4.03 4.29
Financial Leverage, Industry
Consumer Discretionary 4.23 5.36 5.47 5.07 4.99

Based on: 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).

1 2022 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 44,640 ÷ -4,816 =

2 Click competitor name to see calculations.


Interest Coverage

Lowe’s Cos. Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Selected Financial Data (US$ in millions)
Net earnings 8,442  5,835  4,281  2,314  3,447  3,093 
Add: Income tax expense 2,766  1,904  1,342  1,080  2,042  2,108 
Add: Interest expense, net of amount capitalized 897  872  718  652  649  657 
Earnings before interest and tax (EBIT) 12,105  8,611  6,341  4,046  6,138  5,858 
Solvency Ratio
Interest coverage1 13.49 9.88 8.83 6.21 9.46 8.92
Benchmarks
Interest Coverage, Competitors2
Amazon.com Inc. 22.09 15.69 9.73 8.95 5.48
Booking Holdings Inc. 5.39 2.59 23.40 18.97 18.32
Dollar Tree Inc. 10.12 12.81 7.78 -2.54 6.65 4.54
Home Depot Inc. 17.14 13.60 13.25 14.85 13.96 13.85
Target Corp. 22.16 6.68 9.78 8.97 6.47 4.95
Ulta Beauty Inc.
Interest Coverage, Sector
Retailing 14.10 12.25 10.34 10.50 8.75
Interest Coverage, Industry
Consumer Discretionary 10.89 6.52 8.79 9.89 10.24

Based on: 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).

1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 12,105 ÷ 897 = 13.49

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Lowe’s Cos. Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022.

Fixed Charge Coverage

Lowe’s Cos. Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Selected Financial Data (US$ in millions)
Net earnings 8,442  5,835  4,281  2,314  3,447  3,093 
Add: Income tax expense 2,766  1,904  1,342  1,080  2,042  2,108 
Add: Interest expense, net of amount capitalized 897  872  718  652  649  657 
Earnings before interest and tax (EBIT) 12,105  8,611  6,341  4,046  6,138  5,858 
Add: Operating lease cost 699  659  674  616  626  549 
Earnings before fixed charges and tax 12,804  9,270  7,015  4,662  6,764  6,407 
 
Interest expense, net of amount capitalized 897  872  718  652  649  657 
Operating lease cost 699  659  674  616  626  549 
Fixed charges 1,596  1,531  1,392  1,268  1,275  1,206 
Solvency Ratio
Fixed charge coverage1 8.02 6.05 5.04 3.68 5.31 5.31
Benchmarks
Fixed Charge Coverage, Competitors2
Amazon.com Inc. 5.24 4.63 3.65 3.34 2.25
Booking Holdings Inc. 3.82 2.03 14.27 12.57 12.77
Dollar Tree Inc. 1.92 2.02 1.65 0.26 2.04 1.80
Home Depot Inc. 9.94 8.97 8.26 7.80 7.49 7.39
Target Corp. 12.02 5.24 6.48 6.16 5.10 4.29
Ulta Beauty Inc. 5.16 1.76 4.14 4.28 4.26 4.23
Fixed Charge Coverage, Sector
Retailing 5.35 4.84 4.46 4.64 4.30
Fixed Charge Coverage, Industry
Consumer Discretionary 5.18 3.38 4.14 4.65 4.96

Based on: 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).

1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 12,804 ÷ 1,596 = 8.02

2 Click competitor name to see calculations.

Solvency 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. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022.