Lowe's Companies Inc (LOW)
Total asset turnover
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 84,974,000 | 95,481,000 | 95,365,000 | 87,665,000 | 71,430,000 |
| Total assets | US$ in thousands | 41,795,000 | 43,708,000 | 44,640,000 | 46,735,000 | 39,471,000 |
| Total asset turnover | 2.03 | 2.18 | 2.14 | 1.88 | 1.81 |
February 2, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $84,974,000K ÷ $41,795,000K
= 2.03
Lowe's Companies Inc's total asset turnover ratio has displayed a declining trend over the past five years. The ratio decreased from 1.81 in January 2020 to 1.88 in January 2021, further dropping to 2.14 in January 2022. Subsequently, the ratio decreased to 2.18 in February 2023 and then further declined to 2.03 in February 2024. This indicates that, on average, for every dollar of total assets, Lowe's generated $2.03 in revenue in the latest period. The decrease in total asset turnover may suggest potential inefficiencies in asset utilization or lower sales generated from the assets in recent years. It is essential for the company to investigate the underlying reasons for the declining trend in total asset turnover and take appropriate actions to improve efficiency and profitability.
Peer comparison
Feb 2, 2024