Lowe's Companies Inc (LOW)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	9,974,000	9,210,000	10,743,000	10,159,000	10,304,000	12,169,000	12,150,000	12,093,000	11,768,000	11,154,000	10,901,000	9,647,000	9,081,000	8,464,000	6,888,000	6,314,000	4,788,000	4,187,000	3,969,000	4,017,000
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
Operating profit margin		11.79%	10.29%	11.12%	10.64%	10.86%	12.89%	12.85%	12.68%	12.47%	12.03%	11.80%	11.00%	10.89%	10.63%	9.39%	8.84%	6.74%	5.88%	5.58%	5.68%

February 2, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $9,974,000K ÷ $84,597,000K
= 11.79%

Lowe's Companies Inc operating profit margin has shown some fluctuations over the past few years, ranging from as low as 5.58% in February 2019 to as high as 12.89% in October 2022. The operating profit margin measures the percentage of revenue that remains as operating income after deducting operating expenses. A higher operating profit margin indicates better cost control and efficiency in generating profits from the company's core operations.

In recent quarters, the operating profit margin has generally been in the range of 10% to 12%, which suggests that Lowe's has been able to effectively manage its operating expenses relative to its revenue. The decrease in the operating profit margin in the most recent quarter compared to the preceding quarter could indicate a potential challenge in maintaining profitability, which warrants further investigation into the company's cost structure and operational efficiency.

Overall, while Lowe's has shown some variability in its operating profit margin, maintaining a double-digit margin reflects the company's ability to generate profits from its core business activities. Investors and stakeholders should continue to monitor the trend of the operating profit margin to assess Lowe's operational performance and financial health.