Lowe's Companies Inc (LOW)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | Apr 29, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 10,466,000 | 10,324,000 | 9,554,000 | 8,803,000 | 8,846,000 | 11,044,000 | 13,164,000 | 13,756,000 | 12,764,000 | 10,582,000 | 7,620,000 | 5,256,000 | 7,781,000 | 10,306,000 | 12,684,000 | 15,062,000 | 12,682,000 | 10,302,000 | 9,789,000 | 9,276,000 |
| Total assets | US$ in thousands | 43,102,000 | 44,743,000 | 44,934,000 | 45,365,000 | 41,795,000 | 43,356,000 | 42,519,000 | 42,519,000 | 44,521,000 | 44,521,000 | 45,917,000 | 43,708,000 | 43,708,000 | 46,973,000 | 46,973,000 | 46,725,000 | 46,725,000 | 49,725,000 | 49,725,000 | 44,640,000 |
| Operating ROA | 24.28% | 23.07% | 21.26% | 19.40% | 21.17% | 25.47% | 30.96% | 32.35% | 28.67% | 23.77% | 16.60% | 12.03% | 17.80% | 21.94% | 27.00% | 32.24% | 27.14% | 20.72% | 19.69% | 20.78% |
January 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $10,466,000K ÷ $43,102,000K
= 24.28%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates how efficiently a company is generating earnings from its assets. Analyzing the Operating ROA trend of Lowe's Companies Inc from January 2022 to January 2025, we observe fluctuations in the ratio.
The Operating ROA increased from 20.78% in January 2022 to a peak of 32.35% in October 2023, showcasing a strong performance in utilizing its assets to generate operating income. However, there was a slight decline to 21.26% in July 2024, before rising again to 24.28% in January 2025.
Overall, the company has demonstrated a generally positive trend in operating efficiency, with periods of both growth and stabilization in operating return on assets. It is essential for stakeholders to monitor this ratio to assess Lowe's Companies Inc's effectiveness in utilizing its assets to drive operational profitability.
Peer comparison
Jan 31, 2025