Lowe's Companies Inc (LOW)
Inventory turnover
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 55,797,000 | 74,820,000 | 57,533,000 | 91,058,000 | 64,802,000 |
| Inventory | US$ in thousands | 17,409,000 | 16,894,000 | 16,894,000 | 18,532,000 | 18,532,000 |
| Inventory turnover | 3.21 | 4.43 | 3.41 | 4.91 | 3.50 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $55,797,000K ÷ $17,409,000K
= 3.21
Lowe's Companies Inc's inventory turnover ratio has exhibited some fluctuations over the past few years. In January 2023, the inventory turnover ratio was 3.50, indicating that the company turned its inventory approximately 3.50 times during that period. This ratio improved to 4.91 by February 2023, suggesting better efficiency in managing inventory levels.
However, by January 2024, the inventory turnover ratio decreased to 3.41, indicating a slower rate of inventory turnover compared to the previous year. This trend reversed in February 2024, with the ratio increasing to 4.43, showing an improvement in inventory management efficiency.
By January 2025, the inventory turnover ratio declined further to 3.21, indicating a decrease in the rate at which Lowe's is converting its inventory into sales. Overall, while there have been fluctuations in the inventory turnover ratio, it is essential for Lowe's to monitor and manage its inventory effectively to optimize working capital and operational efficiency.
Peer comparison
Jan 31, 2025