Lowe's Companies Inc (LOW)

Working capital 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 current assets	US$ in thousands	19,071,000	21,442,000	20,060,000	22,326,000	15,318,000
Total current liabilities	US$ in thousands	15,568,000	19,511,000	19,668,000	18,730,000	15,182,000
Working capital turnover		24.26	49.45	243.28	24.38	525.22

February 2, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $84,974,000K ÷ ($19,071,000K – $15,568,000K)
= 24.26

Lowe's Companies Inc's working capital turnover has shown significant fluctuations over the past five years. In particular, the ratio dropped from 525.22 in January 2020 to 24.38 in January 2021 before rebounding to 243.28 in January 2022. This fluctuation indicates a notable change in the efficiency of Lowe's in utilizing its working capital to generate sales revenue. The working capital turnover of 49.45 in February 2023 shows a relative improvement from the previous year but still remains lower than the peak observed in 2022. In February 2024, the working capital turnover decreased to 24.26, suggesting a potential decrease in the efficiency of the company in utilizing its working capital to support its operations and generate revenue. Further investigation into the underlying reasons for these fluctuations is warranted to assess Lowe's Companies Inc's financial performance and operational efficiency.