Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

Analysis of Debt

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Total Debt (Carrying Amount)

Lowe’s Cos. Inc., balance sheet: debt

US$ in millions

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Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Short-term borrowings 499 1,941
Current maturities of long-term debt 2,586 537 585 868 1,112 597
Long-term debt, excluding current maturities 32,901 35,384 32,876 23,859 20,668 16,768
Total debt, including finance lease obligations (carrying amount) 35,487 35,921 33,960 24,727 21,780 19,306

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

Debt item Description The company
Total debt, including finance lease obligations (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Lowe’s Cos. Inc. total debt increased from 2023 to 2024 but then slightly decreased from 2024 to 2025.

Total Debt (Fair Value)

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Jan 31, 2025
Selected Financial Data (US$ in millions)
Short-term borrowings
Long-term debt, excluding finance lease obligations 31,558
Finance lease obligations 475
Total debt, including finance lease obligations (fair value) 32,033
Financial Ratio
Debt, fair value to carrying amount ratio 0.90

Based on: 10-K (reporting date: 2025-01-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 3.97%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
6.24% 1
3.40% 11,215 381
3.70% 7,709 285
5.93% 858 51
4.09% 2,578 105
4.04% 3,820 154
4.35% 6,118 266
5.19% 2,713 141
4.89% 475 23
Total 35,487 1,407
3.97%

Based on: 10-K (reporting date: 2025-01-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 1,407 ÷ 35,487 = 3.97%


Interest Costs Incurred

Lowe’s Cos. Inc., interest costs incurred

US$ in millions

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12 months ended: Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Interest expense 1,472 1,483 1,160 897 872 718
Interest capitalized 6 4 4 3 1
Interest costs incurred 1,478 1,487 1,164 900 872 719

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. Lowe’s Cos. Inc. interest expense increased from 2023 to 2024 but then slightly decreased from 2024 to 2025.
Interest capitalized Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Lowe’s Cos. Inc. interest costs incurred increased from 2023 to 2024 but then slightly decreased from 2024 to 2025.

Adjusted Interest Coverage Ratio

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Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Net earnings 6,957 7,726 6,437 8,442 5,835 4,281
Add: Income tax expense 2,196 2,449 2,599 2,766 1,904 1,342
Add: Interest expense, net of amount capitalized 1,472 1,483 1,160 897 872 718
Earnings before interest and tax (EBIT) 10,625 11,658 10,196 12,105 8,611 6,341
 
Interest costs incurred 1,478 1,487 1,164 900 872 719
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 7.22 7.86 8.79 13.49 9.88 8.83
Adjusted interest coverage ratio (with capitalized interest)2 7.19 7.84 8.76 13.45 9.88 8.82

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

2025 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of amount capitalized
= 10,625 ÷ 1,472 = 7.22

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 10,625 ÷ 1,478 = 7.19


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Lowe’s Cos. Inc. adjusted interest coverage ratio deteriorated from 2023 to 2024 and from 2024 to 2025.