Lowes Companies 548661DW4 Bond
| LOW Stock | USD 227.99 2.95 1.28% |
Lowes Companies holds a debt-to-equity ratio of 0.0. At this time, Lowes Companies' Short and Long Term Debt Total is fairly stable compared to the past year. Net Debt is likely to climb to about 41.2 B in 2024, whereas Interest Debt Per Share is likely to drop 31.46 in 2024. Lowes Companies' financial risk is the risk to Lowes Companies stockholders that is caused by an increase in debt.
At this time, Lowes Companies' Short and Long Term Debt Total is fairly stable compared to the past year. Net Debt is likely to climb to about 41.2 B in 2024, whereas Interest Debt Per Share is likely to drop 31.46 in 2024. Lowes |
Given the importance of Lowes Companies' capital structure, the first step in the capital decision process is for the management of Lowes Companies to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Lowes Companies to issue bonds at a reasonable cost.
| Popular Name | Lowes Companies US548661DW49 |
| Specialization | Consumer Discretionary Distribution & Retail |
| Equity ISIN Code | US5486611073 |
| Bond Issue ISIN Code | US548661DW49 |
Lowes Companies Outstanding Bond Obligations
Understaning Lowes Companies Use of Financial Leverage
Lowes Companies financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Lowes Companies's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Lowes Companies assets, the company is considered highly leveraged. Understanding the composition and structure of overall Lowes Companies debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it. Financial leverage can amplify the potential profits to Lowes Companies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Lowes Companies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 40.1 B | 42.2 B | |
| Net Debt | 39.2 B | 41.2 B | |
| Short Term Debt | 1 B | 597.7 M | |
| Long Term Debt | 35.4 B | 37.2 B | |
| Long Term Debt Total | 37.8 B | 39.7 B | |
| Short and Long Term Debt | 537 M | 985.6 M | |
| Net Debt To EBITDA | 2.91 | 2.98 | |
| Debt To Equity | (2.39) | 12.04 | |
| Interest Debt Per Share | 64.38 | 31.46 | |
| Debt To Assets | 0.83 | 0.60 | |
| Long Term Debt To Capitalization | 1.76 | 0.91 | |
| Total Debt To Capitalization | 1.72 | 0.92 | |
| Debt Equity Ratio | (2.39) | 12.04 | |
| Debt Ratio | 0.83 | 0.60 | |
| Cash Flow To Debt Ratio | 0.23 | 0.18 |
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectCheck out the analysis of Lowes Companies Fundamentals Over Time. For more information on how to buy Lowes Stock please use our How to Invest in Lowes Companies guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Complementary Tools for Lowes Stock analysis
When running Lowes Companies' price analysis, check to measure Lowes Companies' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lowes Companies is operating at the current time. Most of Lowes Companies' value examination focuses on studying past and present price action to predict the probability of Lowes Companies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lowes Companies' price. Additionally, you may evaluate how the addition of Lowes Companies to your portfolios can decrease your overall portfolio volatility.
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |
Is Lowes Companies' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lowes Companies. If investors know Lowes will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lowes Companies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.118 | Dividend Share 4.35 | Earnings Share 13.21 | Revenue Per Share 148.414 | Quarterly Revenue Growth (0.17) |
The market value of Lowes Companies is measured differently than its book value, which is the value of Lowes that is recorded on the company's balance sheet. Investors also form their own opinion of Lowes Companies' value that differs from its market value or its book value, called intrinsic value, which is Lowes Companies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lowes Companies' market value can be influenced by many factors that don't directly affect Lowes Companies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lowes Companies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lowes Companies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lowes Companies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.