Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Lowe’s Cos. Inc., liquidity ratios
Based on: 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), 10-K (reporting date: 2019-02-01).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Lowe’s Cos. Inc. current ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Lowe’s Cos. Inc. quick ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Lowe’s Cos. Inc. cash ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Current Ratio
Lowe’s Cos. Inc., current ratio calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 19,071) | 21,442) | 20,060) | 22,326) | 15,318) | 14,228) | |
| Current liabilities | 15,568) | 19,511) | 19,668) | 18,730) | 15,182) | 14,497) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.23 | 1.10 | 1.02 | 1.19 | 1.01 | 0.98 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Amazon.com Inc. | — | 1.05 | 0.94 | 1.14 | 1.05 | 1.10 | |
| Home Depot Inc. | 1.35 | 1.41 | 1.01 | 1.23 | 1.08 | 1.11 | |
| TJX Cos. Inc. | 1.21 | 1.21 | 1.27 | 1.46 | 1.24 | 1.53 | |
| Current Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 1.10 | 0.98 | 1.17 | 1.06 | 1.10 | |
| Current Ratio, Industry | |||||||
| Consumer Discretionary | — | 1.20 | 1.15 | 1.25 | 1.18 | 1.10 | |
Based on: 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), 10-K (reporting date: 2019-02-01).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 19,071 ÷ 15,568 = 1.23
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Lowe’s Cos. Inc. current ratio improved from 2022 to 2023 and from 2023 to 2024. |
Quick Ratio
Lowe’s Cos. Inc., quick ratio calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 921) | 1,348) | 1,133) | 4,690) | 716) | 511) | |
| Short-term investments | 307) | 384) | 271) | 506) | 160) | 218) | |
| Accounts receivable | —) | —) | —) | —) | —) | —) | |
| Total quick assets | 1,228) | 1,732) | 1,404) | 5,196) | 876) | 729) | |
| Current liabilities | 15,568) | 19,511) | 19,668) | 18,730) | 15,182) | 14,497) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.08 | 0.09 | 0.07 | 0.28 | 0.06 | 0.05 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.81 | 0.69 | 0.86 | 0.83 | 0.83 | |
| Home Depot Inc. | 0.32 | 0.26 | 0.20 | 0.47 | 0.23 | 0.22 | |
| TJX Cos. Inc. | 0.59 | 0.59 | 0.64 | 1.01 | 0.50 | 0.61 | |
| Quick Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 0.68 | 0.57 | 0.77 | 0.68 | 0.65 | |
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | — | 0.85 | 0.81 | 0.92 | 0.88 | 0.79 | |
Based on: 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), 10-K (reporting date: 2019-02-01).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,228 ÷ 15,568 = 0.08
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Lowe’s Cos. Inc. quick ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Cash Ratio
Lowe’s Cos. Inc., cash ratio calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 921) | 1,348) | 1,133) | 4,690) | 716) | 511) | |
| Short-term investments | 307) | 384) | 271) | 506) | 160) | 218) | |
| Total cash assets | 1,228) | 1,732) | 1,404) | 5,196) | 876) | 729) | |
| Current liabilities | 15,568) | 19,511) | 19,668) | 18,730) | 15,182) | 14,497) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.08 | 0.09 | 0.07 | 0.28 | 0.06 | 0.05 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.53 | 0.45 | 0.68 | 0.67 | 0.63 | |
| Home Depot Inc. | 0.17 | 0.12 | 0.08 | 0.34 | 0.12 | 0.11 | |
| TJX Cos. Inc. | 0.54 | 0.53 | 0.59 | 0.97 | 0.45 | 0.55 | |
| Cash Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 0.44 | 0.37 | 0.61 | 0.54 | 0.49 | |
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | — | 0.57 | 0.55 | 0.71 | 0.69 | 0.57 | |
Based on: 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), 10-K (reporting date: 2019-02-01).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,228 ÷ 15,568 = 0.08
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Lowe’s Cos. Inc. cash ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |