Lowe’s Cos. Inc. (NYSE:LOW)

Debt to Equity Ratio

The debt to equity ratio exhibits notable volatility in the earlier periods, increasing from 5.42 in May 2019 to a peak of 52.23 by April 2021. This indicates a significant rise in leverage relative to equity during this timeframe. However, data beyond April 2021 is absent, limiting further trend analysis.

Debt to Equity Ratio Including Operating Lease Liability

This ratio follows a pattern similar to the debt to equity ratio, starting at 6.83 in May 2019 and rising sharply to 62.29 by April 2021. The inclusion of operating lease liabilities increases the leverage measurement, highlighting the impact of lease obligations on the overall financial structure. Data is also missing after April 2021.

Debt to Capital Ratio

The debt to capital ratio shows a steady increasing trend over the entire recorded period, beginning at 0.84 in May 2019 and gradually rising to a peak of 1.73 by February 2024. After this peak, a slight decline occurs but the level remains elevated above 1.60 through May 2025. This consistent upward movement reflects an increasing proportion of debt within the company’s capital structure over time.

Debt to Capital Ratio Including Operating Lease Liability

This ratio mirrors the trend of the debt to capital ratio, with slightly higher values due to the inclusion of lease liabilities. Starting from 0.87 in May 2019, it climbs to approximately 1.60-1.61 by early 2025, with fluctuations around this range towards the end of the data. The trend suggests persistent and increasing leverage when operating leases are accounted for.

Debt to Assets Ratio

The debt to assets ratio remains relatively stable with an overall increasing tendency. It begins at 0.41 in May 2019, climbs to a maximum of 0.86 in February 2024, but shows signs of slight decline or stabilization around 0.77 as of May 2025. This indicates a growing reliance on debt financing compared to total assets, yet with some moderation towards the end of the period.

Debt to Assets Ratio Including Operating Lease Liability

Including operating leases, the debt to assets ratio starts about 10 percentage points higher than the standard ratio, moving from 0.51 in May 2019 up to a high of 0.96 in February 2024. Subsequently, the ratio declines marginally to 0.86 by May 2025. The elevation in this ratio underlines the significance of lease obligations in overall asset financing.

Financial Leverage

Financial leverage recorded in the available data shows a significant increase during the early part of the timeline, from 13.36 in May 2019 to a peak of 115.06 in April 2021. This substantial rise indicates an intensified use of debt relative to equity or assets, consistent with the earlier seen spike in debt to equity ratios. Missing data post-April 2021 limits further evaluation.

The analysis of the quarterly financial data reveals significant fluctuations in total debt, shareholders’ equity, and the debt to equity ratio over the observed periods.

Total Debt

Total debt demonstrated an overall increasing trend from May 2019 through early 2025. Starting at approximately $17.55 billion in May 2019, total debt increased steadily with a few periods of stability, reaching a peak near $36.5 billion around mid-2023. After this peak, a slight decline occurred, bringing total debt to roughly $34.7 billion by May 2025.

Shareholders’ Equity

Shareholders’ equity showed a markedly different trend characterized by a steady decline. Initially valued at approximately $3.24 billion in May 2019, equity declined sharply over the periods, turning negative by the first quarter of 2021. The negative equity deepened significantly, reaching its lowest point around -$14.7 billion in early 2023. Thereafter, a modest recovery occurred but equity remained substantially negative through May 2025, ending near -$13.25 billion.

Debt to Equity Ratio

The debt to equity ratio exhibited extreme volatility consistent with the fluctuations in shareholders’ equity. Starting at 5.42 in May 2019, the ratio increased to nearly 13 by May 2020, reflecting the combination of rising debt and declining equity. Following some improvement mid-2020, the ratio spiked dramatically to 15.16 in early 2021 and escalated sharply to an extraordinary 52.23 by April 2021. Data for subsequent periods is missing, but the available figures indicate a period of financial stress marked by high leverage and significant equity loss.

In summary, total debt increased substantially over the period, while shareholders’ equity declined sharply into negative territory, indicating substantial accumulated losses or other factors negatively impacting net asset value. This dynamic resulted in a dramatic rise in leverage ratios, particularly evident in the early 2021 period, signaling elevated financial risk. The persistent negative equity and high debt levels may warrant close monitoring and strategic financial management to address solvency and capital structure concerns.

The financial data reveals notable trends in debt, equity, and leverage ratios over the examined periods. Total debt, including operating lease liabilities, demonstrates a generally increasing trajectory from May 2019 through the most recent dates in 2025. Initial figures in the low 22,000s million USD escalate significantly, reaching above 38,000 million USD by late 2022 and maintaining a high level with minor fluctuations thereafter.

Shareholders’ equity exhibits a contrasting pattern marked by a consistent decline over the same timeframe. Starting at approximately 3,200 million USD in May 2019, equity diminishes steadily into negative territory by early 2021, and the negative trend persists and deepens through 2025. This erosion of equity suggests deteriorating net asset values, potentially driven by accumulated losses or other adverse factors affecting retained earnings or reserves.

The debt to equity ratio, calculated including operating lease liabilities, reflects the combined effect of rising debt and declining equity. Starting around 6.83 in early 2019, the ratio escalates sharply to reach extraordinarily high levels, peaking above 60 by April 2021. This surge corresponds with the period where equity becomes negative or near zero, inflating the leverage metric to extreme values. Data for subsequent periods are missing, which limits ongoing assessment, but earlier ratios indicate significant leverage risk during the middle period analyzed.

Total Debt

Shows a sustained upward trend with some fluctuations, rising from approximately 22,000 million USD to values above 38,000 million USD before stabilizing around 39,000 million USD in later dates.

Shareholders’ Equity

Consistently declines from a positive figure around 3,200 million USD to substantial negative levels, reaching nearly -15,000 million USD and fluctuating slightly but remaining negative through 2025.

Debt to Equity Ratio

Increases dramatically due to the combined effect of rising debt and sharply decreasing or negative equity, reaching levels that indicate very high financial leverage and associated risks.

Overall, the data suggests increasing reliance on debt financing amid eroding shareholder equity, raising concerns about balance sheet strength and financial stability. The significant rise in leverage ratios could imply elevated financial risk and potential challenges in servicing debt without improvement in equity levels or earnings performance. Missing data on the debt to equity ratio in later periods prevents full trend analysis but initial trends highlight a period of considerable financial stress.

Total debt

The total debt exhibited a general increasing trend from May 2019 to early 2024. Initially, the debt rose steadily from approximately $17.55 billion in May 2019 to a peak of about $36.52 billion in August 2023. Following this peak, total debt showed a slight decline, decreasing to approximately $34.72 billion by May 2025. This indicates an overall accumulation of debt over the analyzed period, with indications of potential efforts to reduce liabilities toward the end of the timeline.

Total capital

Total capital demonstrated noticeable fluctuations without a clear linear trend. Starting from roughly $20.79 billion in May 2019, capital experienced several rises and falls, reaching as low as approximately $19.71 billion in February 2023 and peaking around $26.16 billion in July 2020. Subsequently, the values mostly stabilized around the $21 billion mark with minor variances up to May 2025. These fluctuations suggest variability in the company’s capital structure that may be influenced by changes in equity, debt, or retained earnings components.

Debt to capital ratio

The debt to capital ratio reflected an overall increasing trend, signifying a growing proportion of debt relative to total capital. Beginning at 0.84 in May 2019, the ratio experienced steady increments with some short-term declines, peaking at approximately 1.73 in February 2024. Post-peak, the ratio demonstrated a modest decrease to about 1.62 by May 2025. Values above 1.0 indicate that total debt exceeded total capital in most of the examined periods starting early 2021, highlighting a potential increase in financial leverage and risk exposure.

The analysis of the financial data reveals notable trends in the company's leverage and capital structure over the observed quarterly periods.

Total Debt (including operating lease liability)

The total debt exhibits a generally upward trajectory from May 2019 through the subsequent years, with some fluctuations. Starting near $22.1 billion, the debt rose steadily, reaching peaks above $40 billion around early to mid-2024. Occasional minor declines or plateaus appear, yet the overall direction is a significant increase in debt levels over the analyzed timeframe.

Total Capital (including operating lease liability)

Total capital shows a less consistent pattern, with initial fluctuations around the $25 billion mark, then an increase through mid-2020 reaching over $30 billion. Subsequently, total capital experiences a decline in late 2021 and early 2022, dropping below $25 billion at one point, followed by some recovery and stabilization around the $25 billion to $26 billion range in later periods. Overall, total capital appears relatively stable with moderate volatility compared to the more pronounced rise in total debt.

Debt to Capital Ratio (including operating lease liability)

This ratio demonstrates a clear increasing trend, indicating a growing reliance on debt relative to total capital. Starting at 0.87 in mid-2019, the ratio rises steadily to exceed 1.5 from early 2023 onwards, peaking at approximately 1.6. This trend suggests that the company's debt has come to surpass its total capital consistently in recent years, reflecting increased financial leverage and potential elevated risk levels.

In summary, the data reflects a significant expansion in indebtedness with comparatively stable total capital, resulting in a substantial increase in the debt-to-capital ratio. This pattern points to a strategic shift or necessity towards higher leverage, which may impact the company's financial flexibility and risk profile going forward.

The financial data reflects notable fluctuations in key balance sheet items over the examined period. Total debt and total assets exhibit discernible trends which influence the company's leverage position as measured by the debt to assets ratio.

Total Debt

Total debt shows a general upward trajectory from May 2019 through to early 2023. Initially recorded at approximately $17.6 billion, total debt rises steadily with some periods of relative stability, reaching a peak around February 2023 at roughly $33.5 billion. Post this peak, debt levels remain somewhat stable with minor fluctuations, maintaining values slightly below $36 billion through to the May 2025 estimate.

This increase indicates a significant leveraging effort, particularly noticeable from mid-2021 onwards, coinciding with the company potentially pursuing debt-financed initiatives or responding to external financial conditions.

Total Assets

Total assets exhibit a less consistent pattern with more pronounced volatility compared to total debt. Starting near $43.2 billion in May 2019, assets experience a decline towards early 2020, followed by a substantial increase peaking near $51.8 billion in mid-2020. Afterwards, total assets fluctuate within the $44.6 billion to $49.7 billion range until early 2023, when a decline brings the figure down toward $43.7 billion.

From mid-2023 onward, assets demonstrate some recovery and modest growth, hovering in the $42 billion to $45 billion range by early 2025. This variability may reflect asset revaluation, disposals, or changes in operational scale.

Debt to Assets Ratio

The leverage ratio, calculated as total debt divided by total assets, confirms an increasing leverage trend over the period. Beginning at 0.41 in May 2019, the ratio climbs steadily with few interruptions, reaching levels above 0.8 by early 2024, implying that over 80% of assets are financed by debt at that point.

A peak ratio is observed near 0.86 in early 2024, after which a slight decrease occurs, suggesting a minor deleveraging or asset growth. However, the ratio remains elevated around 0.77 to 0.82 through May 2025. This persistent high leverage ratio points to an intensified reliance on debt financing that may impact financial risk and cost of capital considerations.

In summary, the data portrays a company experiencing expanding total debt relative to assets, which results in increased financial leverage over time. While total assets show some variation without a strong upward trend, the consistent rise in debt has driven the leverage ratio higher, indicating growing risk exposure related to indebtedness. The recent slight moderation in the leverage ratio could suggest initial efforts to balance this trend, but the overall financial structure remains significantly leveraged relative to the start of the period.

The debt and asset data reveal notable trends over the observed periods. Total debt, inclusive of operating lease liabilities, exhibits a general upward trajectory from May 2019 through the early months of 2023, rising from approximately $22.1 billion to a peak around $38.2 billion. After this peak, the total debt stabilizes and slightly declines towards mid-2025, settling near $38.9 billion.

Total assets present a more volatile pattern with moderate fluctuations. Initially, assets decrease from about $43.2 billion in May 2019 to under $40 billion by early 2020. Following this low, a significant increase occurs mid-2020, peaking near $51.8 billion in or around mid-2020, then experiencing a gradual decline and varying between approximately $43 billion and $46 billion from 2021 onward. By mid-2025, total assets end on a rising note near $45.4 billion.

The debt-to-assets ratio indicates the proportion of assets financed by debt and reflects the relationship between the aforementioned figures. Starting at approximately 0.51 in May 2019, the ratio generally trends upwards, reaching a high of 0.96 by mid-2023. This suggests increasing leverage during this timeframe as debt grew faster than assets. Post this peak, the ratio declines somewhat, stabilizing near 0.86 by mid-2025, signaling a slight reduction in leverage or relative improvement in asset base versus debt.

Overall, the data suggest an increase in financial leverage over the period from 2019 to early 2023, marked by a sharp increase in total debt and moderate asset growth. The subsequent modest decline in leverage and total debt with recoveries in asset levels during 2023–2025 indicate a possible strategic shift toward deleveraging or asset base strengthening.

The analyzed financial data reveals several notable trends across the indicated periods for key balance sheet items and financial leverage ratios.

Total Assets

Total assets display significant fluctuations over the periods. Initially, assets decreased from approximately $43.2 billion to about $39.5 billion by early 2020. This was followed by a marked increase to a peak of roughly $51.8 billion in mid-2020. Subsequently, total assets experienced volatility but generally trended downward through to early 2025, ending near $45.4 billion. This pattern suggests periods of asset expansion followed by asset reductions or divestitures in later periods.

Shareholders’ Equity (Deficit)

Shareholders’ equity showed a declining trend overall. Starting from about $3.2 billion in mid-2019, equity gradually decreased, turning negative around early 2021. The deficit deepened considerably thereafter, reaching approximately negative $14.7 billion by late 2023 and remaining significantly negative through early 2025, with a slight reduction in the magnitude of deficit toward the last date. This persistent negative equity signals substantial accumulated losses or other factors reducing net worth over time.

Financial Leverage Ratio

The financial leverage ratio demonstrates a substantial increase, indicating rising debt levels relative to equity. From a starting point around 13.36 in mid-2019, leverage peaked at 115.06 in early 2021. Data beyond early 2021 is missing for this ratio, but the earlier trends suggest a sharp increase in reliance on external financing, especially as equity turned negative. High leverage ratios of this magnitude typically indicate elevated financial risk and potential solvency concerns.

In summary, the data reflect a decreasing equity base alongside volatile total asset levels, coupled with rapidly increasing financial leverage up to the point where equity becomes negative. Such trends may imply financial stress, increased debt financing, and deteriorating net asset positions over the observed periods. Close monitoring and analysis of underlying factors affecting these metrics would be essential to assess ongoing financial stability.