Calculate Lowe’s Current Ratio
Introduction & Importance
Lowe’s Current Ratio, also known as the Acid-Test Ratio, is a crucial liquidity ratio that measures a company’s ability to pay its short-term obligations using its current assets. It’s more conservative than the current ratio as it excludes inventory…
How to Use This Calculator
- Enter the current assets and current liabilities of the company.
- Click the “Calculate” button.
- View the result and chart below.
Formula & Methodology
The formula for Lowe’s Current Ratio is: Current Assets / Current Liabilities. Here’s how it works…
Real-World Examples
| Company | Current Assets | Current Liabilities | Lowe’s Current Ratio |
|---|---|---|---|
| Apple Inc. | $120.4B | $103.6B | 1.16 |
| Microsoft Corporation | $136.2B | $111.1B | 1.23 |
| Amazon.com Inc. | $107.1B | $72.1B | 1.49 |
Data & Statistics
| Year | Average Lowe’s Current Ratio (S&P 500) |
|---|---|
| 2010 | 1.15 |
| 2015 | 1.22 |
| 2020 | 1.34 |
Expert Tips
- Ideally, the Lowe’s Current Ratio should be 1 or above.
- Compare your ratio with industry averages to benchmark your company’s liquidity.
- Regularly review and improve your current ratio to ensure long-term financial health.
Interactive FAQ
What is a good Lowe’s Current Ratio?
A good Lowe’s Current Ratio is 1 or above, indicating that a company has enough current assets to cover its current liabilities.
How can I improve my company’s Lowe’s Current Ratio?
To improve your Lowe’s Current Ratio, focus on increasing current assets (e.g., inventory, accounts receivable) or decreasing current liabilities (e.g., accounts payable, short-term loans).