Lowe’s Cos. Inc. (NYSE:LOW)

Debt to Equity Ratios

The debt to equity ratio exhibited notable volatility during the early periods, starting at 12.71 and fluctuating significantly, with peaks such as 52.23 by April 30, 2021. Including operating lease liabilities, the ratio similarly increased from 15.28 to 62.29 over the same timeframe. However, data beyond this point is missing, limiting further longitudinal analysis for this metric.

Debt to Capital Ratios

This ratio shows a generally rising trend from May 1, 2020, through October 28, 2022, increasing from 0.93 to a peak of 1.72. After this peak, a gradual decline is observable through the latest date of October 31, 2025, ending at 1.35. When operating lease liabilities are included, a similar pattern emerges, peaking slightly lower at 1.6 before tapering to 1.3. This pattern suggests initial leverage growth followed by modest deleveraging in subsequent periods.

Debt to Assets Ratios

Starting from 0.48 on May 1, 2020, this ratio increased steadily to reach 0.86 by February 2, 2024, indicating growing reliance on debt relative to company assets. Including operating lease liabilities, the ratio follows a similar upward trajectory from 0.57 to 0.96 over the same period. Post-February 2024, the figures generally stabilize with mild fluctuations, ending near 0.75 to 0.84 by October 2025, reflecting a plateau in asset financing structure.

Financial Leverage

The financial leverage ratio shows extreme variability in the initial dataset, starting at 26.71 and spiking to over 115.06 as of April 30, 2021. No later data is available, so no conclusions can be drawn on subsequent trends. This indicates a substantial leverage event or accounting change during that early period.

Overall Analysis

Initial periods exhibit significant fluctuations and increases in leverage-related metrics, with notable spikes in debt to equity and financial leverage ratios. Over time, available data reveals a more stabilized leverage profile, particularly apparent after early 2022 where debt to capital and debt to asset ratios display a leveling off and slight gradual decline. The inclusion of operating lease liabilities uniformly increases leverage measurements but does not alter the general trends observed. The absence of data for some ratios in certain periods limits comprehensive longitudinal assessment but overall points to an early phase of increased indebtedness followed by a cautious reduction or stabilization of leverage levels.

Total Debt

The total debt exhibits a generally upward trajectory over the examined periods. Beginning at approximately 21.8 billion US dollars, it fluctuates with some minor decreases but mostly increases, reaching nearly 40.0 billion US dollars by the final period. Notable increases are observed starting early 2022, with a peak at the end of October 2025.

Shareholders’ Equity (Deficit)

Shareholders' equity demonstrates a declining trend throughout the periods. It starts positive but experiences significant decreases early on, turning into a deficit from mid-2020 onward. The deficit progressively deepens, reaching a maximum negative value exceeding 15 billion US dollars around late 2023 and remaining substantially negative through the final periods, although showing slight improvements towards the end.

Debt to Equity Ratio

Available data for the debt to equity ratio reveals extreme variability in the initial periods, starting at a very high ratio of 12.71, dropping to around 5, and then surging to over 52 at one point. This implies escalating financial leverage accompanied by deteriorating equity values early in the timeline. However, the subsequent data points for this ratio are unavailable, limiting further ratio trend assessment.

Overall Financial Condition

The increasing total debt combined with a deteriorating shareholders' equity underscores a growing financial leverage and potential solvency concerns. The pronounced equity deficits and high initial debt to equity ratios indicate elevated financial risk. The significant changes in equity and debt levels suggest the company may be relying heavily on debt financing, which could impact its creditworthiness and financial stability if these trends persist.

Total Debt (including operating lease liability)

The total debt level exhibited a general upward trend over the periods analyzed. Starting at approximately $26.2 billion, it rose notably to about $44.7 billion by the final reported period. There were some fluctuations within this upward movement, including decreases during early 2022 and early 2024, but the overall trajectory indicates an increasing reliance on debt financing over time.

Shareholders’ Equity (Deficit)

The shareholders' equity showed a marked decline throughout the timeframe, transitioning from a small positive value of approximately $1.7 billion initially to a significant negative position nearing -$10.4 billion by the end. The equity balance deteriorated sharply starting from early 2021, maintaining a negative trajectory with no signs of recovery across subsequent quarters. This persistent deficit suggests ongoing losses or other equity-reducing events impacting the company's net worth negatively.

Debt to Equity Ratio (Including Operating Lease Liability)

Data for this ratio are only available for the initial four quarters. The ratio demonstrates considerable volatility, beginning at a very high level over 15 times, dropping to around 6 times in mid-2020, and then spiking dramatically to above 62 times by April 2021. This volatility reflects significant swings in the relative size of debt compared to equity, likely influenced by the shrinking equity base and fluctuating debt amounts during this period. The absence of ratio data beyond this quarter may be due to the negative equity values, which render the debt to equity ratio less meaningful or undefined.

Overall Financial Position Insights

There is a clear pattern of increasing leverage coinciding with deteriorating equity values. The growth in total debt alongside a steady decline into shareholder equity deficits indicates heightened financial risk. This trend may raise concerns regarding the company’s solvency and its capacity to meet long-term obligations without restructuring its capital or generating significant earnings improvements. The lack of positive equity suggests that the company may currently be in a technically insolvent position on a book value basis. Observations imply a need for strategic emphasis on deleveraging and equity restoration to improve financial stability.

The analysis of the financial data over the observed periods reveals distinct trends in the company's capital structure and debt levels.

Total Debt

The total debt levels remained relatively stable from May 2020 through January 2021, fluctuating slightly around the range of approximately 21,780 to 21,800 million USD. Starting from April 2021, there was a consistent upward trend in total debt, reaching a peak of approximately 36,524 million USD by May 2023. Following this peak, debt slightly decreased but remained elevated, ending at around 39,935 million USD by October 2025. This indicates an overall increasing reliance on debt financing over the observed timeframe.

Total Capital

Total capital exhibited more volatility compared to total debt. Initially, it grew from 23,520 million USD in May 2020, peaking above 26,000 million USD in July 2020. However, it then showed a declining trend through early 2022, dropping to around 19,706 million USD by February 2023. Post this low point, total capital generally trended upwards, recovering to nearly 29,553 million USD by October 2025. This suggests fluctuating capital investments or changes in equity levels during the period.

Debt to Capital Ratio

The debt-to-capital ratio exhibited a rising trend from May 2020 onward. It started at 0.93 and, despite some fluctuations, progressively increased to reach a high of approximately 1.73 by November 2023, indicating debt levels exceeding total capital consistently during this period. Following this peak, the ratio began to decline gradually, reaching about 1.35 by October 2025. The ratio above 1.0 across most periods signifies that total debt consistently surpassed the company’s total capital, reflecting a capital structure heavily weighted towards debt financing throughout the observed timeframe. The eventual decline in the ratio hints at a potential stabilization or rebalancing of the financing mix in later periods.

Overall, the data show an increasing and sustained use of debt capital, with total debt growing significantly over the period, while total capital exhibited a more variable pattern. The debt-to-capital ratio exceeding unity for most periods underscores a greater proportion of debt relative to the overall capital base, although recent trends suggest some improvement in the capital structure balance.

Total Debt (including operating lease liability)

The total debt level exhibits general upward movement over the observed periods, increasing from approximately 26.2 billion US dollars in May 2020 to a peak above 44.6 billion US dollars by October 2025. There are some fluctuations within the trend, with occasional slight decreases, particularly noticeable between late 2021 and early 2022, and minor decreases in mid-2024. Overall, the data indicates a considerable accumulation of debt over the timeframe.

Total Capital (including operating lease liability)

Total capital demonstrates more variability with periods of decline and growth. It begins near 27.9 billion US dollars in May 2020, dips to a low around 23.7 billion US dollars in early 2023, then generally increases afterwards, reaching 34.3 billion US dollars by October 2025. This reflects fluctuations in financing structure and potential capital management activities, with a notable recovery and growth phase in the latter periods.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio shows a high and generally increasing leverage, starting at 0.94 in May 2020 and climbing above 1.0 from mid-2021 onward, indicating debt levels exceeding total capital. It reaches its maximum around 1.61 in late 2023 and early 2024, suggesting a peak in leveraged financing during this period. Subsequently, there is a gradual reduction in the ratio towards 1.3 by October 2025, evidencing an improvement in capital structure with relatively lower reliance on debt in the latter periods.

Summary

Overall, the data reflects an increasing reliance on debt financing, as indicated by the rising debt values and the debt to capital ratio exceeding 1.0 for a sustained period. Total capital fluctuates but trends upward towards the end of the reported periods. The peak leverage around late 2023 to early 2024 may denote the highest financial risk, followed by a modest deleveraging as the ratio declines. These patterns suggest active financial management in addressing capital structure and debt load over time.

Total Debt

The total debt level exhibited a generally increasing trend from May 2020 through October 2022, rising from approximately 21.8 billion USD to a peak exceeding 36.5 billion USD. Thereafter, it stabilized with minor fluctuations, remaining around 35.4 to 36.4 billion USD for several quarters before a notable increase to nearly 40.0 billion USD by October 2025, indicating a sustained accumulation of liabilities over the period examined.

Total Assets

Total assets demonstrated a more volatile pattern. Initially, assets rose from around 45.8 billion USD in May 2020 to surpass 51.7 billion USD by July 2020, followed by declines and subsequent recoveries. After fluctuating between approximately 41.8 billion USD and 49.7 billion USD from early 2021 to mid-2024, there was a marked increase toward the end of the period analyzed, reaching over 53.4 billion USD in October 2025. This behavior reflects periods of asset contraction and expansion, with a notable upward movement in the latter stages.

Debt to Assets Ratio

The debt to assets ratio reveals a clear upward trajectory from 0.48 in May 2020 to a peak near 0.86 in February 2024, indicating that debt grew at a faster pace than assets for much of the timeline. Subsequently, this ratio exhibited a moderate decline and relative stabilization around the 0.74 to 0.79 range, suggesting that although leverage remains elevated compared to the start of the period, the company has managed to improve or maintain its capital structure somewhat after peaking leverage levels in early 2024.

Overall Analysis

Over the examined period, total debt showed a steady increase with some stabilization phases, while total assets were more variable but generally stable to rising toward the end. The increasing debt to assets ratio through early 2024 signals heightened financial leverage during that stretch, which might imply increased risk or financing activities. The subsequent partial reduction in this ratio may reflect efforts to manage leverage through asset growth or debt reduction. The recent increases in both assets and liabilities near the end of the timeline suggest ongoing dynamic financial management within the company’s balance sheet.

Debt Levels

The total debt, inclusive of operating lease liabilities, demonstrated an overall increasing trend over the analyzed periods. Starting at approximately $26.2 billion, the debt level fluctuated moderately in the early periods but showed more noticeable escalation from mid-2022 onward. The debt peaked near $44.7 billion in the last period, indicating a substantial rise in the company's leverage position over time.

Total Assets

Total assets exhibited a somewhat volatile pattern, beginning around $45.8 billion and reaching a high near $51.8 billion in July 2020. Following this, assets declined notably, particularly between early 2021 and early 2023, before recovering moderately in subsequent periods. The final recorded asset value stood at about $53.5 billion, reflecting a recovery from mid-cycle lows but overall modest growth relative to the initial period.

Debt to Assets Ratio

The debt to assets ratio, reflecting leverage as a proportion of total asset base, increased consistently throughout the periods. Initially at 0.57, the ratio experienced a general upward trajectory, demonstrating an intensifying use of debt relative to assets. This ratio crossed the 0.80 mark in late 2022 and peaked at around 0.96 in early 2024, signifying a highly leveraged position. A slight decrease occurred after this peak, but the ratio remained elevated near 0.84 by the final period, suggesting sustained leverage pressure.

Overall Analysis

The data indicates a clear trend of increasing indebtedness relative to the company’s asset base over the analyzed timeframe. The growth in total debt outpaced the growth in assets, resulting in a higher debt to asset ratio. This rising leverage may imply greater financial risk and potential constraints on flexibility. The fluctuations in asset levels suggest some underlying volatility, likely impacted by operational or market factors. The recent stabilization of the debt to assets ratio, albeit at elevated levels, may reflect efforts to manage or optimize capital structure following the peak leverage period.

Total Assets

The total assets demonstrate some volatility over the observed periods. Initially, assets increased from approximately 45.8 billion in early May 2020 to a peak above 51 billion in mid-2020 and early 2021. Following this peak, there is a general declining trend through 2022 and early 2023, reaching a low near 41.7 billion by early 2024. After this trough, assets show a recovery trend, climbing again to around 53.5 billion by late 2025. This indicates cycles of asset accumulation and reduction, possibly reflecting strategic shifts or market conditions affecting the company's asset base.

Shareholders’ Equity (Deficit)

Shareholders' equity exhibits a sharply negative trend throughout most of the period. Starting from a modest positive value of about 1.7 billion in May 2020, equity surges to a high of 4.3 billion mid-2020. However, from early 2021 onward, there is a pronounced and continuous decline into negative territory, reaching a maximum deficit of approximately 15.1 billion around late 2023. Thereafter, although still negative, equity shows some signs of gradual improvement, reducing the deficit to around 10.4 billion by late 2025. This persistent equity deficit denotes significant losses or distributions exceeding accumulated profits, which could raise concerns about financial stability if not addressed.

Financial Leverage

Financial leverage ratios are reported only for the early periods through early 2021. There is substantial fluctuation, starting very high at approximately 26.7 in May 2020, dropping to around 11.9 and 12.5 mid and late 2020, and then sharply increasing to 32.5 by early 2021, followed by an extraordinary spike to 115.1. The absence of data in subsequent periods limits further analysis, but the early high leverage ratios suggest a considerable reliance on debt or liabilities relative to equity, which aligns with the observed negative equity trend.

Overall Insights

The company displays considerable volatility in asset levels and a pronounced deterioration in shareholders' equity, indicating potential financial distress during the extended timeframe. The early patterns of high financial leverage coupled with escalating equity deficits may imply increased financial risk. However, the latter period shows some asset recovery and a reduction in equity deficits, suggesting possible efforts to stabilize or improve financial health. Continued monitoring of equity trends and leverage is advisable to assess the company’s progress toward financial stability.