Lowe's Companies Inc (LOW)

Return on assets (ROA)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 2, 2024	Jan 31, 2024	Nov 3, 2023	Oct 31, 2023	Aug 4, 2023	Jul 31, 2023	Apr 30, 2023	Feb 3, 2023	Jan 31, 2023	Oct 31, 2022	Oct 28, 2022	Jul 31, 2022	Jul 29, 2022	Apr 30, 2022	Apr 29, 2022	Jan 31, 2022
Net income (ttm)	US$ in thousands	6,957,000	6,853,000	6,178,000	5,568,000	5,586,000	7,239,000	8,892,000	9,379,000	8,564,000	6,849,000	4,330,000	2,224,000	4,258,000	6,292,000	8,471,000	10,650,000	8,864,000	7,079,000	6,642,000	6,205,000
Total assets	US$ in thousands	43,102,000	44,743,000	44,934,000	45,365,000	41,795,000	43,356,000	42,519,000	42,519,000	44,521,000	44,521,000	45,917,000	43,708,000	43,708,000	46,973,000	46,973,000	46,725,000	46,725,000	49,725,000	49,725,000	44,640,000
ROA		16.14%	15.32%	13.75%	12.27%	13.37%	16.70%	20.91%	22.06%	19.24%	15.38%	9.43%	5.09%	9.74%	13.39%	18.03%	22.79%	18.97%	14.24%	13.36%	13.90%

January 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $6,957,000K ÷ $43,102,000K
= 16.14%

Lowe's Companies Inc's return on assets (ROA) has exhibited some fluctuations over the reported periods. At the start of the time frame in January 2022, the ROA stood at 13.90%, indicating that for every dollar of assets, the company generated a profit of 13.90 cents. The ROA then declined slightly to 13.36% by April 2022 before experiencing an increase to 14.24% by the end of April 2022.

Subsequently, there was a significant rise in ROA to 18.97% by July 2022, which further increased to 22.79% by the end of July 2022, reflecting strong asset utilization and profitability. However, the ROA declined to 18.03% by the end of October 2022 and further dropped to 13.39% by the end of the quarter in January 2023.

The trend continued with a substantial decrease in ROA to 5.09% in February 2023, indicating a significant drop in asset efficiency and profitability. However, the ROA showed a recovery to 9.43% by April 2023, followed by an increase to 15.38% by July 2023 and a further rise to 19.24% by August 2023.

The ROA peaked at 22.06% by the end of October 2023, showcasing strong asset performance. Subsequently, the ROA slightly decreased to 20.91% by November 2023 before declining to 16.70% by January 2024.

The ROA remained relatively stable around the mid-teens range for the subsequent periods, with values of 13.37% in February 2024, 12.27% in April 2024, 13.75% in July 2024, and 15.32% in October 2024. The latest reported ROA figure as of January 2025 stands at 16.14%.

Overall, Lowe's Companies Inc's ROA has shown variability over the reported periods, with some fluctuations in asset efficiency and profitability. It is essential for stakeholders to monitor these metrics to assess the company's performance in effectively utilizing its assets to generate profits.