Lowe's Companies Inc (LOW)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 41,795,000 | 42,519,000 | 44,521,000 | 43,708,000 | 46,973,000 | 46,725,000 | 49,725,000 | 44,640,000 | 49,400,000 | 49,404,000 | 51,200,000 | 46,735,000 | 50,880,000 | 51,763,000 | 45,832,000 | 39,471,000 | 39,764,000 | 40,695,000 | 43,219,000 | 34,508,000 |
| Operating ROA | 23.86% | 21.66% | 24.13% | 23.24% | 21.94% | 26.04% | 24.43% | 27.09% | 23.82% | 22.58% | 21.29% | 20.64% | 17.85% | 16.35% | 15.03% | 16.00% | 12.04% | 10.29% | 9.18% | 11.64% |
February 2, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $9,974,000K ÷ $41,795,000K
= 23.86%
Operating return on assets (operating ROA) is a financial ratio that measures a company's ability to generate operating profits from its assets. A higher operating ROA indicates better operating efficiency.
Analyzing the trend of Lowe's Companies Inc's operating ROA over the past few quarters, we observe fluctuations in the ratio. From May 2020 to February 2021, the operating ROA showed a steady decline from 16.35% to 20.64%. However, from May 2021 to February 2024, there was an overall increasing trend, with operating ROA ranging from 21.29% to 27.09%.
The peak operating ROA of 27.09% was achieved on January 28, 2022, reflecting strong operational performance and effective asset utilization. This suggests that Lowe's was able to generate significant operating income relative to its total assets during that period.
It is worth noting that the operating ROA dipped to 9.18% on November 1, 2019, indicating a period of lower profitability or less efficient asset management.
In summary, Lowe's Companies Inc has shown varying levels of operating efficiency over the past few quarters, with a generally improving trend in operating ROA from early 2021 to early 2024. This suggests that the company has been able to enhance its operational effectiveness in generating profits from its assets during these periods.
Peer comparison
Feb 2, 2024