Lowe's Companies Inc (LOW)
Fixed asset turnover
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 84,974,000 | 95,481,000 | 95,365,000 | 87,665,000 | 71,430,000 |
| Property, plant and equipment | US$ in thousands | 17,228,000 | 17,567,000 | 19,071,000 | 19,155,000 | 18,769,000 |
| Fixed asset turnover | 4.93 | 5.44 | 5.00 | 4.58 | 3.81 |
February 2, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $84,974,000K ÷ $17,228,000K
= 4.93
Lowe's Companies Inc has shown a consistent trend of improving its fixed asset turnover ratio over the past five years. The ratio has increased from 3.81 in January 2020 to 4.93 in February 2024, indicating that the company is generating more revenue relative to its investment in fixed assets. This signifies that Lowe's has efficiently utilized its fixed assets to generate sales, reflecting operational effectiveness and potentially improved asset productivity. The upward trend in fixed asset turnover suggests that Lowe's has been successful in managing and utilizing its fixed assets efficiently to drive revenue growth over the years.
Peer comparison
Feb 2, 2024