Lowe's Companies Inc (LOW)
Inventory turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | Apr 29, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 56,223,000 | 60,681,000 | 60,325,000 | 62,409,000 | 61,287,000 | 65,443,000 | 68,982,000 | 66,027,000 | 75,250,000 | 69,369,000 | 68,473,000 | 78,276,000 | 74,265,000 | 82,323,000 | 82,716,000 | 78,450,000 | 73,970,000 | 70,213,000 | 70,451,000 | 70,223,000 |
| Inventory | US$ in thousands | 17,409,000 | 17,566,000 | 16,841,000 | 18,224,000 | 16,894,000 | 16,894,000 | 17,530,000 | 17,530,000 | 17,422,000 | 17,422,000 | 19,522,000 | 18,532,000 | 18,532,000 | 19,817,000 | 19,817,000 | 19,329,000 | 19,329,000 | 20,239,000 | 20,239,000 | 17,605,000 |
| Inventory turnover | 3.23 | 3.45 | 3.58 | 3.42 | 3.63 | 3.87 | 3.94 | 3.77 | 4.32 | 3.98 | 3.51 | 4.22 | 4.01 | 4.15 | 4.17 | 4.06 | 3.83 | 3.47 | 3.48 | 3.99 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $56,223,000K ÷ $17,409,000K
= 3.23
Inventory turnover ratio measures how many times a company's inventory is sold and replaced over a specific period. Analyzing Lowe's Companies Inc's inventory turnover based on the provided data from January 31, 2022, to January 31, 2025, we can observe fluctuations in the ratio.
The inventory turnover ratio ranged from a low of 3.23 times on January 31, 2025, to a high of 4.32 times on August 4, 2023. Generally, a higher inventory turnover ratio indicates that the company is efficiently managing its inventory by quickly selling and replenishing it. A lower ratio may suggest overstocking, slow sales, or obsolete inventory.
The company's inventory turnover shows variability over the period, with some quarters experiencing higher turnover rates than others. This variability could be influenced by seasonal demand, changes in consumer behavior, or internal inventory management practices.
Overall, a comprehensive analysis of Lowe's Companies Inc's inventory turnover ratio reveals fluctuations in the efficiency of inventory management over the specified period. Further investigation into the factors driving these fluctuations would provide deeper insights into the company's operational performance and inventory management strategy.
Peer comparison
Jan 31, 2025
Jan 31, 2025