Lowe's Companies Inc (LOW)

Working capital 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
Revenue (ttm)	US$ in thousands	84,597,000	89,536,000	96,644,000	95,481,000	94,907,000	94,431,000	94,574,000	95,365,000	94,353,000	92,681,000	92,406,000	87,663,000	83,405,000	79,589,000	73,324,000	71,431,000	71,088,000	71,150,000	71,081,000	70,721,000
Total current assets	US$ in thousands	19,071,000	19,968,000	22,236,000	21,442,000	24,991,000	22,667,000	25,611,000	20,060,000	24,849,000	25,083,000	26,816,000	22,326,000	26,916,000	27,717,000	21,926,000	15,318,000	15,662,000	16,796,000	19,335,000	14,228,000
Total current liabilities	US$ in thousands	15,568,000	16,496,000	17,612,000	19,511,000	20,876,000	20,366,000	21,831,000	19,668,000	20,834,000	21,664,000	22,892,000	18,730,000	19,564,000	21,370,000	18,325,000	15,182,000	15,063,000	15,835,000	17,781,000	14,497,000
Working capital turnover		24.15	25.79	20.90	49.45	23.06	41.04	25.02	243.28	23.50	27.11	23.55	24.38	11.34	12.54	20.36	525.23	118.68	74.04	45.74	—

February 2, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $84,597,000K ÷ ($19,071,000K – $15,568,000K)
= 24.15

Lowe's Companies Inc's working capital turnover ratio has shown fluctuations over the reported periods. The working capital turnover for Feb 2, 2024, was 24.15, indicating that the company generated $24.15 in net sales for every $1 of working capital invested during that period. This ratio decreased from the previous quarter, where it was 25.79.

The working capital turnover has varied widely over the historical period shown, with some quarters exhibiting significantly higher ratios, such as Jan 31, 2020, and Jan 31, 2022, with ratios of 525.23 and 243.28, respectively. These high ratios suggest efficient utilization of working capital to generate sales.

However, there are also quarters where the working capital turnover was lower, such as in Oct 30, 2020, and Oct 28, 2022, with ratios of 11.34 and 23.06, respectively. Lower ratios may point to challenges in efficiently converting working capital into sales during those periods.

Overall, the working capital turnover ratio for Lowe's Companies Inc has shown variability, indicating fluctuations in the company's efficiency in utilizing its working capital to generate sales over the reporting periods. Analysts may further investigate the factors contributing to these fluctuations to gain insights into the company's working capital management and operational performance.