Lowe's Companies Inc (LOW)
Profitability ratios
Return on sales
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.94% | 33.78% | 33.61% | 33.73% | 32.12% |
| Operating profit margin | 13.60% | 10.64% | 12.68% | 11.00% | 8.84% |
| Pretax margin | 11.97% | 9.46% | 11.75% | 8.83% | 7.87% |
| Net profit margin | 9.09% | 6.74% | 8.85% | 6.66% | 5.99% |
Lowe's Companies Inc has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has steadily increased from 32.12% in 2020 to 33.94% in 2024, indicating the company's ability to control its cost of goods sold and generate more revenue from its sales.
The operating profit margin has also shown a positive trend, increasing from 8.84% in 2020 to 13.60% in 2024. This signifies that Lowe's has been able to effectively manage its operating expenses and boost its operating income.
Similarly, the pretax margin has demonstrated a growth trend, rising from 7.87% in 2020 to 11.97% in 2024. This indicates that the company has been successful in improving its profitability before considering taxes and other expenses.
Moreover, the net profit margin has consistently increased from 5.99% in 2020 to 9.09% in 2024, reflecting Lowe's ability to generate higher profits after accounting for all expenses and taxes.
Overall, Lowe's Companies Inc has shown significant improvement in its profitability ratios over the years, signaling a strong financial performance and effective management of its operations.
Return on investment
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 27.65% | 23.24% | 27.09% | 20.64% | 16.00% |
| Return on assets (ROA) | 18.49% | 14.73% | 18.91% | 12.49% | 10.85% |
| Return on total capital | — | — | — | 671.33% | 320.18% |
| Return on equity (ROE) | — | — | — | 406.05% | 217.09% |
Lowe's Companies Inc has shown a consistently increasing trend in its profitability ratios over the years. The Operating Return on Assets (Operating ROA) has improved from 16.00% in January 2020 to 27.65% in February 2024, indicating that the company has become more efficient in generating operating income relative to its total assets.
Similarly, the Return on Assets (ROA) has also shown growth, increasing from 10.85% in January 2020 to 18.49% in February 2024. This indicates that Lowe's is effectively utilizing its assets to generate profits for its shareholders.
Unfortunately, the data for Return on Total Capital is missing for the recent years, but there was a substantial increase from 320.18% in January 2020 to 671.33% in January 2021. This suggests that the company was able to generate significant returns relative to its total capital employed during those years.
The Return on Equity (ROE) has also demonstrated a strong upward trajectory, growing from 217.09% in January 2020 to an undisclosed figure in February 2024. This signifies that Lowe's has been successful in generating substantial returns for its shareholders in relation to the equity invested in the company.
Overall, the profitability ratios of Lowe's Companies Inc indicate a positive trend, with increasing returns on assets, total capital, and equity, suggesting efficient management of resources and a potentially healthy financial performance.