Lowe's Companies Inc (LOW)

Fixed asset turnover

		Jan 31, 2025	Feb 2, 2024	Jan 31, 2024	Feb 3, 2023	Jan 31, 2023
Revenue	US$ in thousands	83,674,000	84,974,000	86,377,000	95,481,000	97,059,000
Property, plant and equipment	US$ in thousands	—	17,228,000	—	17,567,000	21,085,000
Fixed asset turnover		—	4.93	—	5.44	4.60

January 31, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $83,674,000K ÷ $—K
= —

The fixed asset turnover ratio measures how efficiently a company is generating revenue from its investments in fixed assets. Looking at the data for Lowe's Companies Inc, we observe fluctuations in the fixed asset turnover ratio over the years.

In January 2023, the fixed asset turnover ratio was 4.60, indicating that Lowe's generated $4.60 in sales for every dollar invested in fixed assets. The ratio improved significantly by February 3, 2023, reaching 5.44, suggesting increased efficiency in utilizing fixed assets to generate revenue.

However, there is missing data for the fixed asset turnover ratio in January 2024 and January 31, 2025. This could be due to various reasons such as changes in accounting practices or incomplete information provided.

In February 2, 2024, the fixed asset turnover ratio was 4.93, showing a slight decrease from the peak in February 3, 2023. This indicates a temporary decrease in the efficiency of converting fixed assets into sales revenue but is still relatively high.

Overall, analyzing the fixed asset turnover ratio for Lowe's Companies Inc reveals fluctuations in efficiency in utilizing fixed assets to generate revenue, with potential areas for improvement and further investigation required for the missing data points.