Lowe's Companies Inc (LOW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 33.78% | 33.91% | 33.74% | 33.78% | 33.75% | 33.67% | 33.81% | 33.61% | 33.37% | 33.66% | 33.75% | 33.73% | 33.69% | 33.22% | 32.56% | 32.12% | 32.16% | 31.76% | 31.99% | 32.39% |
| 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% |
| Pretax margin | 10.19% | 8.83% | 9.85% | 9.46% | 9.76% | 11.86% | 11.88% | 11.75% | 11.57% | 9.97% | 9.72% | 8.83% | 8.62% | 9.65% | 8.39% | 7.87% | 5.80% | 4.98% | 4.70% | 4.80% |
| Net profit margin | 7.59% | 6.21% | 7.01% | 6.74% | 7.04% | 8.93% | 8.94% | 8.85% | 8.70% | 7.56% | 7.38% | 6.66% | 6.43% | 7.19% | 6.24% | 5.99% | 4.15% | 3.55% | 3.34% | 3.27% |
Lowe's Companies Inc has maintained a relatively stable gross profit margin, ranging from around 33% to 34% over the past several quarters. The operating profit margin has shown some variability but generally stayed above 10%, indicating efficient cost management. The pretax margin has also fluctuated, with a peak around 11.86% and a trough around 4.70% over the analyzed period.
Net profit margin, which reflects the company's bottom-line profitability after all expenses, has displayed a similar pattern of fluctuation, ranging from around 3% to 8.94%. Despite some variability, the net profit margin has generally remained above 5%, suggesting that Lowe's has been able to generate reasonable profits relative to its revenue.
Overall, Lowe's profitability ratios indicate a solid performance, with consistent gross profit margins, efficient cost management reflected in the operating profit margin, and reasonable net profit margins relative to the industry standards.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 15.37% | 13.07% | 15.22% | 14.73% | 14.23% | 18.04% | 17.00% | 18.91% | 16.63% | 14.19% | 13.32% | 12.49% | 10.55% | 11.06% | 9.98% | 10.85% | 7.41% | 6.21% | 5.49% | 6.70% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | 2,449.66% | 671.33% | 222.96% | 194.31% | 401.40% | 320.18% | 194.79% | 158.60% | 122.65% | 110.24% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | 1,532.36% | 406.05% | 131.77% | 131.40% | 266.43% | 217.09% | 119.89% | 95.72% | 73.27% | 63.47% |
Lowe's Companies Inc has shown consistent profitability over the analyzed period, as evidenced by its Return on Assets (ROA) and Operating Return on Assets (Operating ROA) ratios. The Operating ROA has been relatively stable, ranging between 20% and 26%, indicating that the company efficiently generates profits from its assets to support its operations. The ROA has also remained healthy, fluctuating between 13% and 18%, reflecting Lowe's ability to generate profits relative to its total assets.
Moreover, the Return on Equity (ROE) ratios showed a significant increase in recent periods, reaching peak levels of over 1,500% and gradually trending downwards. This demonstrates the company's effective use of equity to generate profits for shareholders, although it might raise questions about the sustainability of such high returns in the future.
It is important to note the unusual values for the Return on Total Capital ratio in some periods, with extremely high percentages that are potentially outliers or caused by specific events such as accounting adjustments or capital restructuring. Further investigation would be necessary to understand the drivers behind these anomalies.
Overall, Lowe's profitability ratios indicate a strong performance in terms of asset utilization and return generation, highlighting its ability to create value for shareholders and stakeholders.