Lowe's Companies Inc (LOW)
Operating return on assets (Operating ROA)
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 11,557,000 | 10,159,000 | 12,093,000 | 9,647,000 | 6,314,000 |
| Total assets | US$ in thousands | 41,795,000 | 43,708,000 | 44,640,000 | 46,735,000 | 39,471,000 |
| Operating ROA | 27.65% | 23.24% | 27.09% | 20.64% | 16.00% |
February 2, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $11,557,000K ÷ $41,795,000K
= 27.65%
Lowe's Companies Inc has shown a consistent improvement in its operating return on assets (ROA) over the past five years. The operating ROA has increased from 16.00% in fiscal year 2020 to 27.65% in fiscal year 2024. This upward trend indicates that the company has been able to generate more operating income from its assets over the years, reflecting operational efficiency and effectiveness in utilizing its resources.
The company's ability to increase its operating ROA signifies a strong performance in generating profits from its core business activities relative to its asset base. This improvement may indicate effective management of assets, cost control measures, and operational excellence. Investors and stakeholders can view this trend positively as it demonstrates the company's ability to enhance profitability and create value from its assets.
Peer comparison
Feb 2, 2024