Lowe's Companies Inc (LOW)
Payables 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 |
| Payables | US$ in thousands | 8,704,000 | 9,914,000 | 10,333,000 | 10,524,000 | 12,249,000 | 12,631,000 | 13,831,000 | 11,354,000 | 11,334,000 | 12,011,000 | 13,964,000 | 10,884,000 | 12,759,000 | 12,916,000 | 10,841,000 | 7,659,000 | 8,822,000 | 9,499,000 | 11,485,000 | 8,279,000 |
| Payables turnover | 9.03 | 8.70 | 8.88 | 8.65 | 7.16 | 6.59 | 6.03 | 7.41 | 7.36 | 6.95 | 5.98 | 7.35 | 5.97 | 5.57 | 6.20 | 8.60 | 5.86 | 5.52 | 4.58 | 6.30 |
February 2, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $78,562,000K ÷ $8,704,000K
= 9.03
The payables turnover ratio for Lowe's Companies Inc has shown some fluctuations over the past 20 financial periods. The ratio measures how efficiently the company is managing its accounts payable by calculating how many times a company pays off its average accounts payable balance during a specific period.
From the data provided, we can see that the payables turnover ratio has ranged from a low of 4.58 to a high of 9.03. A higher turnover ratio indicates that the company is paying off its suppliers more frequently, which can be a positive sign as it may suggest good liquidity and strong supplier relationships.
The highest payables turnover ratio of 9.03 was recorded on February 2, 2024, indicating that Lowe's was able to pay off its accounts payable balance over nine times during that period. Conversely, the lowest ratio of 4.58 was noted on February 1, 2019.
Overall, the trend of the payables turnover ratio for Lowe's has shown some variability over time, with some fluctuations but generally maintaining levels above 5. This suggests that the company has been effectively managing its accounts payable, though further analysis would be required to determine the reasons behind the fluctuations and assess the impact on the company's financial performance.
Peer comparison
Feb 2, 2024