Lowe's Companies Inc (LOW)

Return on assets (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
Net income (ttm)	US$ in thousands	6,424,000	5,558,000	6,777,000	6,437,000	6,686,000	8,428,000	8,454,000	8,442,000	8,213,000	7,009,000	6,819,000	5,835,000	5,367,000	5,724,000	4,572,000	4,281,000	2,947,000	2,527,000	2,371,000	2,313,000
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
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%

February 2, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $6,424,000K ÷ $41,795,000K
= 15.37%

Return on assets (ROA) is a key financial ratio that measures a company's ability to generate profits from its assets. Lowe's Companies Inc has shown a consistent trend in its ROA over the past few years, with fluctuations seen in the ratio. The ROA for the most recent period, as of Feb 2, 2024, stands at 15.37%, indicating that Lowe's is generating approximately 15.37 cents of profit for every dollar of assets it owns.

Comparing the ROA over time, we observe that Lowe's ROA has generally increased from around 6.70% in February 2019 to the latest figure of 15.37% in February 2024. This improvement suggests that Lowe's has become more efficient in utilizing its assets to generate profits over the years.

However, it is important to note that there have been fluctuations in the ROA during this period. For example, the ratio peaked at 18.91% in January 2022 but dipped to 6.21% in November 2019 before rebounding.

Overall, Lowe's performance in terms of ROA indicates that the company has been successful in generating profits relative to its asset base, with a positive trend in efficiency and profitability over the past few years. Further analysis and comparison with industry peers may provide additional insights into Lowe's overall financial health and performance.