Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Lowe’s Cos. Inc., solvency ratios
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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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. |