Lowe's Companies Inc (LOW)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.32% | 33.94% | 33.39% | 33.78% | 33.23% |
| Operating profit margin | 12.51% | 13.60% | 13.38% | 10.64% | 10.47% |
| Pretax margin | 10.94% | 11.97% | 11.78% | 9.46% | 9.31% |
| Net profit margin | 8.31% | 9.09% | 8.94% | 6.74% | 6.63% |
Lowe's Companies Inc's Gross Profit Margin has been relatively consistent over the past three years, ranging between 33.23% and 33.94%. This indicates the company is effectively managing its direct costs related to the production of goods sold.
In terms of Operating Profit Margin, there has been an increasing trend from 10.47% in January 31, 2023, to 13.60% in February 2, 2024, before slightly decreasing to 12.51% by January 31, 2025. This suggests that Lowe's has been improving its efficiency in managing operating expenses and generating operating income.
The Pretax Margin has also shown a positive trend, increasing from 9.31% in January 31, 2023, to 11.97% in February 2, 2024, although it dipped slightly to 10.94% by January 31, 2025. This indicates that the company has been effectively managing its pre-tax income in relation to its total revenue.
Net Profit Margin reflects the company's bottom line efficiency, showing an improvement from 6.63% in January 31, 2023, to 9.09% in February 2, 2024, before settling at 8.31% by January 31, 2025. This demonstrates Lowe's ability to control costs and generate profits after accounting for all expenses.
Overall, the profitability ratios suggest that Lowe's has been successfully managing its costs and generating profits over the analyzed period, with improvements in operating and net profit margins highlighting effective cost control and operational efficiency.
Return on investment
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 24.28% | 27.65% | 27.65% | 23.24% | 23.24% |
| Return on assets (ROA) | 16.14% | 18.49% | 18.49% | 14.73% | 14.73% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
Lowe's Companies Inc has exhibited a strong trend in profitability ratios over the past few years.
Firstly, looking at the Operating return on assets (Operating ROA), the company has shown consistent performance with figures standing at 23.24% on January 31, 2023, and February 3, 2023. This ratio increased to 27.65% on both January 31, 2024, and February 2, 2024, showcasing an improvement in utilizing assets to generate operating profits. However, there was a slight decline to 24.28% on January 31, 2025.
In terms of Return on assets (ROA), Lowe's Companies Inc has also demonstrated a positive trend. The ROA was recorded at 14.73% on January 31, 2023, and February 3, 2023, and increased to 18.49% on both January 31, 2024, and February 2, 2024. It then decreased slightly to 16.14% on January 31, 2025.
It is important to note that Return on total capital and Return on equity (ROE) data are not available for the specified periods, which may indicate that the company's capital structure and equity performance were not provided or calculated in the dataset.
Overall, the profitability ratios of Lowe's Companies Inc reflect a consistent and relatively strong performance in generating profits from its asset base, which can be positive indicators for investors and stakeholders.