Lowe's Companies Inc (LOW)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	78,562,000	86,271,000	91,743,000	91,030,000	87,717,000	83,223,000	83,336,000	84,156,000	83,453,000	83,458,000	83,443,000	79,950,000	76,232,000	71,928,000	67,194,000	65,834,000	51,717,000	52,457,000	52,571,000	52,142,000
Inventory	US$ in thousands	16,894,000	17,530,000	17,422,000	18,532,000	19,817,000	19,329,000	20,239,000	17,605,000	16,685,000	17,322,000	18,382,000	16,193,000	15,712,000	13,831,000	14,283,000	13,179,000	13,716,000	13,730,000	15,026,000	12,561,000
Inventory turnover		4.65	4.92	5.27	4.91	4.43	4.31	4.12	4.78	5.00	4.82	4.54	4.94	4.85	5.20	4.70	5.00	3.77	3.82	3.50	4.15

February 2, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $78,562,000K ÷ $16,894,000K
= 4.65

Lowe's Companies Inc has shown a consistent pattern of inventory turnover over the past several quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the inventory has been sold and replaced over a specific period.

Looking at the data, we can observe that the inventory turnover ratio has generally ranged between 4.12 to 5.27 over the last few quarters. This consistency suggests that Lowe's has been effectively managing its inventory levels to meet customer demand while minimizing excess inventory.

A higher inventory turnover ratio indicates that the company is converting its inventory into sales more frequently, which is generally a positive sign as it implies efficient inventory management. Lowe's inventory turnover has mostly been in the range of 4.12 to 5.27, indicating that the company has been maintaining a balance between having enough inventory to meet demand without overstocking.

Overall, the trend in Lowe's inventory turnover reflects a stable and efficient approach to managing inventory, which is crucial for maintaining healthy cash flow and profitability.