Lowe's Companies Inc (LOW)

Working capital turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 2, 2024	Jan 31, 2024	Nov 3, 2023	Oct 31, 2023	Aug 4, 2023	Jul 31, 2023	Apr 30, 2023	Feb 3, 2023	Jan 31, 2023	Oct 31, 2022	Oct 28, 2022	Jul 31, 2022	Jul 29, 2022	Apr 30, 2022	Apr 29, 2022	Jan 31, 2022
Revenue (ttm)	US$ in thousands	83,673,000	83,351,000	81,783,000	78,296,000	77,403,000	83,752,000	90,106,000	92,354,000	93,570,000	91,435,000	89,958,000	90,781,000	96,570,000	101,332,000	101,512,000	101,759,000	95,622,000	89,528,000	90,291,000	89,568,000
Total current assets	US$ in thousands	20,358,000	21,977,000	22,337,000	22,750,000	19,071,000	19,071,000	19,968,000	19,968,000	22,236,000	22,236,000	23,918,000	21,442,000	21,442,000	24,991,000	24,991,000	22,667,000	22,667,000	25,611,000	25,611,000	20,060,000
Total current liabilities	US$ in thousands	18,757,000	19,447,000	18,246,000	19,506,000	15,568,000	15,568,000	16,496,000	16,496,000	17,612,000	17,612,000	19,210,000	19,511,000	19,511,000	20,876,000	20,876,000	20,366,000	20,366,000	21,831,000	21,831,000	19,668,000
Working capital turnover		52.26	32.95	19.99	24.14	22.10	23.91	25.95	26.60	20.24	19.77	19.11	47.01	50.01	24.63	24.67	44.22	41.56	23.68	23.89	228.49

January 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $83,673,000K ÷ ($20,358,000K – $18,757,000K)
= 52.26

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. The working capital turnover of Lowe's Companies Inc has fluctuated over the periods covered in the data provided.

In January 2022, the working capital turnover was exceptionally high at 228.49, indicating that Lowe's was able to generate significant sales relative to its working capital investment. Subsequently, the ratio decreased sharply to around 23.89 by April 2022 and remained relatively low in the following months, suggesting a decline in the efficiency of working capital utilization.

The ratio started to improve in July 2022, reaching 44.22 by the end of that month, and continued to increase over the subsequent periods. This improvement indicates that Lowe's was able to enhance its working capital efficiency in generating sales revenue.

While there were fluctuations in the ratio over the periods, it generally trended upwards, reaching 52.26 in January 2025, showcasing a more efficient use of working capital to drive sales growth. It is important for Lowe's to continue optimizing its working capital management to sustain this positive trend and improve overall operational efficiency.