Lowe's Companies Inc (LOW)

Fixed asset turnover

		Feb 2, 2024	Nov 3, 2023	Aug 4, 2023	Feb 3, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	May 1, 2020	Jan 31, 2020	Nov 1, 2019	Aug 2, 2019	May 3, 2019	Feb 1, 2019
Revenue (ttm)	US$ in thousands	84,597,000	89,536,000	96,644,000	95,481,000	94,907,000	94,431,000	94,574,000	95,365,000	94,353,000	92,681,000	92,406,000	87,663,000	83,405,000	79,589,000	73,324,000	71,431,000	71,088,000	71,150,000	71,081,000	70,721,000
Property, plant and equipment	US$ in thousands	17,228,000	17,527,000	17,373,000	17,567,000	17,275,000	18,713,000	18,890,000	19,071,000	18,925,000	19,031,000	19,059,000	19,155,000	18,798,000	18,734,000	18,629,000	18,769,000	18,371,000	18,203,000	18,150,000	18,432,000
Fixed asset turnover		4.91	5.11	5.56	5.44	5.49	5.05	5.01	5.00	4.99	4.87	4.85	4.58	4.44	4.25	3.94	3.81	3.87	3.91	3.92	3.84

February 2, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $84,597,000K ÷ $17,228,000K
= 4.91

Lowe's Companies Inc has shown a consistent trend of improvement in its fixed asset turnover ratio over the past few years, indicating efficient utilization of its fixed assets to generate sales. The company's fixed asset turnover ratio has been steadily increasing from 3.84 in February 2019 to 5.11 in November 2023, with some minor fluctuations along the way.

A higher fixed asset turnover ratio suggests that Lowe's is effectively generating revenue from its investments in fixed assets such as property, plant, and equipment. This could be indicative of improved operational efficiency, better asset management, or successful capital expenditure decisions.

Overall, the trend in Lowe's fixed asset turnover ratio reflects positively on the company's ability to generate sales from its fixed assets, which is a key component of operational efficiency and profitability.