Lowe's Companies Inc (LOW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | -15,050,000 | -14,254,000 | -4,816,000 | 1,437,000 | 1,972,000 |
| ROE | — | — | — | 406.05% | 217.09% |
February 2, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $7,726,000K ÷ $-15,050,000K
= —
From the data provided, it is observed that Lowe's Companies Inc had a return on equity (ROE) of 406.05% in 2021, a significant increase from 217.09% in 2020. Unfortunately, the ROE data for the most recent fiscal year (2023 and 2024) is not available.
This sharp increase in ROE from 2020 to 2021 suggests that Lowe's improved its efficiency in generating profits from shareholders' equity during that period. A high ROE indicates that the company is effectively using its shareholders' funds to generate profits.
Without the ROE data for 2022, it is difficult to assess the trend over the past few years. However, the notable jump in ROE from 2020 to 2021 indicates that Lowe's made significant improvements in its profitability and efficiency during that time. Further analysis with additional data from recent years would provide a more comprehensive understanding of Lowe's performance in utilizing shareholders' equity to generate returns.
Peer comparison
Feb 2, 2024