Lowe's (Lowe's) Interest Coverage

: 4.54 (As of Jan. 2024)

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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 Jan. 2024 was $1,688 Mil. Lowe's's Interest Expense for the three months ended in Jan. 2024 was $-372 Mil. Lowe's's interest coverage for the quarter that ended in Jan. 2024 was 4.54. 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: 8.91 Max: 13.48
Current: 7.78

LOW's Interest Coverage is ranked better than
50% of 754 companies
in the Retail - Cyclical industry
Industry Median: 7.755 vs LOW: 7.78

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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Lowe's Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

8.79

11.06

13.48

8.76

7.79

Lowe's Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage																5.06	9.01	10.34	7.25	4.54

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 ⁽¹⁾.

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. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, Lowe's's Interest Expense was $-1,483 Mil. Its Operating Income was $11,557 Mil. And its Long-Term Debt & Capital Lease Obligation was $39,121 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	11557	/	-1483
	=	7.79

Lowe's's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Lowe's's Interest Expense was $-372 Mil. Its Operating Income was $1,688 Mil. And its Long-Term Debt & Capital Lease Obligation was $39,121 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	1688	/	-372
	=	4.54

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 (Lowe's) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Lowe's Companies Inc (NYSE:LOW) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

LOW:Mexico LWE:Germany LWE:Germany LOWC34:Brazil

Address

1000 Lowes Boulevard, Mooresville, NC, USA, 28117

Website

https://www.lowes.com

Lowe's is the second-largest home improvement retailer in the world, operating more than 1,700 stores in the United States, after the 2023 divestiture of its Canadian locations (RONA, Lowe's Canada, Réno-Dépôt, and Dick's Lumber). The firm's stores offer products and services for home decorating, maintenance, repair, and remodeling, with maintenance and repair accounting for two thirds of products sold. Lowe's targets retail do-it-yourself (around 75% of sales) and do-it-for-me customers as well as commercial and professional business clients (around 25% of sales). We estimate Lowe's captures a low-double-digit share of the domestic home improvement market, based on U.S. Census data and management's market size estimates.

Executives

Janice Dupre Little	officer: EVP Human Resources	1000 LOWES BOULEVARD, MOORESVILLE NC 28117
Joseph Michael Mcfarland	officer: EVP, Stores	1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Quonta D Vance	officer: EVP, Pro & Home Services	1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Donald Frieson	officer: EVP, Supply Chain	1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
William P Boltz	officer: EVP, Merchandising	1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Seemantini Godbole	officer: EVP, Chief Information Officer	1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Juliette Williams Pryor	officer: EVP, CLO & Corp. Sec.	1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Ross W Mccanless	officer: SR VP Gen Counsel & Secretary
Scott H Baxter	director	400 NORTH ELM STREET, GREENSBORO NC 27401
Taylor Colleen	director	C/O BILL.COM HOLDINGS, INC., 1800 EMBARCADERO ROAD, PALO ALTO CA 94303
Brandon J Sink	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
Daniel J Heinrich	director	CLOROX CO, 1221 BROADWAY, OAKLAND CA 94612
David H Batchelder	director	1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Griggs Dan Clayton Jr	officer: Vice President, CAO	1000 LOWES BOULEVARD, MOORESVILLE NC 28117