Lowe's Companies Inc (LOW)
Pretax margin
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 10,175,000 | 9,036,000 | 11,208,000 | 7,739,000 | 5,623,000 |
| Revenue | US$ in thousands | 84,974,000 | 95,481,000 | 95,365,000 | 87,665,000 | 71,430,000 |
| Pretax margin | 11.97% | 9.46% | 11.75% | 8.83% | 7.87% |
February 2, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $10,175,000K ÷ $84,974,000K
= 11.97%
Lowe's Companies Inc's pretax margin has shown a positive trend over the past five years, increasing from 7.87% in January 2020 to 11.97% in February 2024. This indicates that the company has been able to improve its pre-tax profitability by effectively managing its operating expenses relative to its revenue. The steady growth in pretax margin demonstrates Lowe's ability to generate higher earnings before taxes for each dollar of sales over the years. This is a positive indication of the company's operational efficiency and financial performance, showcasing a better control on costs or an increase in pricing power.
Peer comparison
Feb 2, 2024