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Lowe's Interest Coverage

: 13.48 (As of Apr. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Lowe's's Operating Income for the three months ended in Apr. 2022 was $3,302 Mil. Lowe's's Interest Expense for the three months ended in Apr. 2022 was $-245 Mil. Lowe's's interest coverage for the quarter that ended in Apr. 2022 was 13.48. The higher the ratio, the stronger the company's financial strength is.

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

LOW' s Interest Coverage Range Over the Past 10 Years
Min: 6.16   Med: 8.92   Max: 13.48
Current: 13.09


LOW's Interest Coverage is ranked better than
54.51% of 798 companies
in the Retail - Cyclical industry
Industry Median: 10.79 vs LOW: 13.09

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Lowe's Interest Coverage Historical Data

The historical data trend for Lowe's's Interest Coverage 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
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.15 6.16 8.79 11.06 13.48

Lowe's Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Interest Coverage 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 15.16 19.14 12.34 7.80 13.48

Competitive Comparison

For the Home Improvement Retail subindustry, Lowe's's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where Lowe's's Interest Coverage falls into.



Lowe's Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Lowe's's Interest Coverage for the fiscal year that ended in Jan. 2022 is calculated as

Here, for the fiscal year that ended in Jan. 2022, Lowe's's Interest Expense was $-897 Mil. Its Operating Income was $12,093 Mil. And its Long-Term Debt & Capital Lease Obligation was $27,880 Mil.

Interest Coverage=-1* Operating Income (A: Jan. 2022 )/Interest Expense (A: Jan. 2022 )
=-1*12093/-897
=13.48

Lowe's's Interest Coverage for the quarter that ended in Apr. 2022 is calculated as

Here, for the three months ended in Apr. 2022, Lowe's's Interest Expense was $-245 Mil. Its Operating Income was $3,302 Mil. And its Long-Term Debt & Capital Lease Obligation was $32,837 Mil.

Interest Coverage=-1* Operating Income (Q: Apr. 2022 )/Interest Expense (Q: Apr. 2022 )
=-1*3302/-245
=13.48

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Lowe's  (NYSE:LOW) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Lowe's Interest Coverage Related Terms

Thank you for viewing the detailed overview of Lowe's's Interest Coverage 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

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