Lowe's Companies Inc (LOW)
Total asset turnover
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 83,674,000 | 84,974,000 | 86,377,000 | 95,481,000 | 97,059,000 |
| Total assets | US$ in thousands | 43,102,000 | 41,795,000 | 41,795,000 | 43,708,000 | 43,708,000 |
| Total asset turnover | 1.94 | 2.03 | 2.07 | 2.18 | 2.22 |
January 31, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $83,674,000K ÷ $43,102,000K
= 1.94
The total asset turnover ratio for Lowe's Companies Inc has shown a gradual decline from 2.22 in January 31, 2023, to 1.94 in January 31, 2025. This indicates that the company generated $2.22 in sales for every $1 of total assets in 2023, which decreased to $1.94 in 2025.
A decreasing trend in total asset turnover may suggest that the company is less efficient in utilizing its assets to generate sales over time. It could imply that the company is either experiencing a decrease in sales relative to its asset base or that its asset base is growing at a faster rate than its sales.
Further analysis and comparison with industry benchmarks or competitors may help in understanding the underlying reasons for the decline and identifying potential areas for improvement in asset utilization efficiency.
Peer comparison
Jan 31, 2025