Lowe's Companies Inc (LOW)

Return on assets (ROA)

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Net income	US$ in thousands	7,726,000	6,437,000	8,442,000	5,835,000	4,281,000
Total assets	US$ in thousands	41,795,000	43,708,000	44,640,000	46,735,000	39,471,000
ROA		18.49%	14.73%	18.91%	12.49%	10.85%

February 2, 2024 calculation

ROA = Net income ÷ Total assets
= $7,726,000K ÷ $41,795,000K
= 18.49%

Lowe's Companies Inc has demonstrated a consistently positive trend in return on assets (ROA) over the past five years. The ROA has shown an increasing pattern from 10.85% in January 2020 to 18.49% in February 2024. This indicates that the company has been effectively utilizing its assets to generate profits for shareholders. A higher ROA reflects greater efficiency in converting assets into earnings, highlighting the company's ability to generate profits relative to its total assets. The improving trend in ROA suggests that Lowe's management has been successful in optimizing the allocation and utilization of the company's resources to drive profitability. This positive performance in ROA over the years demonstrates Lowe's ability to generate value from its assets, which is a favorable indicator of financial health and operational effectiveness.