GURUFOCUS.COM » STOCK LIST » USA » NYSE » Lowe's Companies Inc (NYSE:LOW) » Definitions » Current Ratio
Switch to:

Lowe's Current Ratio

: 1.17 (As of Apr. 2022)
View and export this data going back to 1979. Start your Free Trial

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Lowe's's current ratio for the quarter that ended in Apr. 2022 was 1.17.

Lowe's has a current ratio of 1.17. It generally indicates good short-term financial strength.

The historical rank and industry rank for Lowe's's Current Ratio or its related term are showing as below:

LOW' s Current Ratio Range Over the Past 10 Years
Min: 0.94   Med: 1.34   Max: 2.38
Current: 1.17

During the past 13 years, Lowe's's highest Current Ratio was 2.38. The lowest was 0.94. And the median was 1.34.

LOW's Current Ratio is ranked worse than
70.7% of 1123 companies
in the Retail - Cyclical industry
Industry Median: 1.57 vs LOW: 1.17

Lowe's Current Ratio Historical Data

The historical data trend for Lowe's's Current Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lowe's Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Current Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.06 0.98 1.01 1.19 1.02

Lowe's Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Current Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.17 1.16 1.19 1.02 1.17

Competitive Comparison

For the Home Improvement Retail subindustry, Lowe's's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Lowe's Current Ratio Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's Current Ratio distribution charts can be found below:

* The bar in red indicates where Lowe's's Current Ratio falls into.



Lowe's Current Ratio Calculation

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

Lowe's's Current Ratio for the fiscal year that ended in Jan. 2022

Current Ratio (A: Jan. 2022 )=Total Current Assets (A: Jan. 2022 )/Total Current Liabilities (A: Jan. 2022 )
=20060/19668
=1.02

Lowe's's Current Ratio for the quarter that ended in Apr. 2022 is calculated as

Current Ratio (Q: Apr. 2022 )=Total Current Assets (Q: Apr. 2022 )/Total Current Liabilities (Q: Apr. 2022 )
=25611/21831
=1.17

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Lowe's  (NYSE:LOW) Current Ratio Explanation

The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.

Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.

The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.

If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.


Lowe's Current Ratio Related Terms

Thank you for viewing the detailed overview of Lowe's's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Lowe's Business Description

Lowe's logo
Address
1000 Lowe's Boulevard, Mooresville, NC, USA, 28117
Lowe's is the second- largest home improvement retailer in the world (behind wide-moat Home Depot), operating 1,971 stores and servicing 230 dealer-owned stores throughout the United States and Canada. The firm's stores offer products and services for home decorating, maintenance, repair, and remodeling. Lowe's targets retail do-it-yourself and do-it-for-me customers as well as commercial business clients. We estimate Lowe's captures a low-double-digit share of the $900 billion domestic home improvement market, based on Lowe's estimate for market size.
Executives
Taylor Colleen director C/O BILL.COM HOLDINGS, INC. 1800 EMBARCADERO ROAD PALO ALTO CA 94303
Sink Brandon J officer: EVP, Chief Financial Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Stone West Mary E director C/O HASBRO, INC. 1011 NEWPORT AVENUE PAWTUCKET RI 02861
Heinrich Daniel J director CLOROX CO 1221 BROADWAY OAKLAND CA 94612
Griggs Dan Clayton Jr officer: Vice President, CAO 1000 LOWES BOULEVARD MOORESVILLE NC 28117
Little Janice Dupre officer: EVP Human Resources 1000 LOWES BOULEVARD MOORESVILLE NC 28117
Thalberg Marisa F officer: EVP Chief Brand & Mktg Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Denton David M officer: EVP, Chief Financial Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Godbole Seemantini officer: EVP, Chief Information Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Mason Tiffany L officer: Interim CFO & SVP 440 S. CHURCH STREET SUITE 700 CHARLOTTE NC 28202
Boltz William P officer: EVP, Merchandising 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Mcfarland Joseph Michael officer: EVP, Stores 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Frieson Donald officer: EVP, Supply Chain 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Ellison Marvin R director, officer: President and CEO 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Rogers Brian C director T ROWE PRICE GROUP INC 100 E PRATT ST BALTIMORE MD 21202

Lowe's Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)