Lowe's Companies Inc (LOW)
Net profit margin
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,726,000 | 6,437,000 | 8,442,000 | 5,835,000 | 4,281,000 |
| Revenue | US$ in thousands | 84,974,000 | 95,481,000 | 95,365,000 | 87,665,000 | 71,430,000 |
| Net profit margin | 9.09% | 6.74% | 8.85% | 6.66% | 5.99% |
February 2, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $7,726,000K ÷ $84,974,000K
= 9.09%
Lowe's Companies Inc has shown a positive trend in its net profit margin over the past five years. The net profit margin indicates the percentage of revenue that translates into profit after deducting all expenses.
In fiscal year 2024, Lowe's achieved a net profit margin of 9.09%, marking a significant improvement from the prior year's 6.74%. This indicates that for every dollar of revenue generated, the company retained approximately 9.09 cents as profit.
Comparing this to previous years, Lowe's has been successful in consistently increasing its net profit margin since fiscal 2020. This trend demonstrates the company's ability to effectively manage costs and improve operational efficiency, leading to higher profitability over time.
The steady growth in net profit margin reflects positively on Lowe's financial performance and its ability to generate profits from its operations. This improvement may be attributed to various factors such as effective cost control measures, revenue growth, and operational efficiency initiatives.
Peer comparison
Feb 2, 2024