Lowe's Companies Inc (LOW)
Return on total capital
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 11,557,000 | 10,159,000 | 12,093,000 | 9,647,000 | 6,314,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -15,050,000 | -14,254,000 | -4,816,000 | 1,437,000 | 1,972,000 |
| Return on total capital | — | — | — | 671.33% | 320.18% |
February 2, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $11,557,000K ÷ ($—K + $-15,050,000K)
= —
Based on the provided data, the return on total capital for Lowe's Companies Inc increased significantly from 320.18% in January 2020 to 671.33% in January 2021. However, there is no data available for the subsequent years up to February 2024 for a detailed trend analysis.
The notable jump in the return on total capital from 2020 to 2021 suggests that the company effectively generated a higher return relative to its total capital employed in the business. This increase could be attributed to various factors such as improved operational efficiency, effective capital allocation, or strategic investments that yielded higher returns.
Without additional data for subsequent years, it is challenging to provide a more in-depth analysis of the trend or to compare Lowe's return on total capital with industry benchmarks or competitors. Further information would be necessary to assess the sustainability and consistency of the company's performance in generating returns on its total capital.
Peer comparison
Feb 2, 2024