Lowe's Companies Inc (LOW)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,974,000 | 9,210,000 | 10,743,000 | 10,159,000 | 10,304,000 | 12,169,000 | 12,150,000 | 12,093,000 | 11,768,000 | 11,154,000 | 10,901,000 | 9,647,000 | 9,081,000 | 8,464,000 | 6,888,000 | 6,314,000 | 4,788,000 | 4,187,000 | 3,969,000 | 4,017,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -15,050,000 | -15,147,000 | -14,732,000 | -14,254,000 | -12,868,000 | -8,442,000 | -6,877,000 | -4,816,000 | -1,576,000 | -175,000 | 445,000 | 1,437,000 | 4,073,000 | 4,356,000 | 1,716,000 | 1,972,000 | 2,458,000 | 2,640,000 | 3,236,000 | 3,644,000 |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | 2,449.66% | 671.33% | 222.96% | 194.31% | 401.40% | 320.18% | 194.79% | 158.60% | 122.65% | 110.24% |
February 2, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $9,974,000K ÷ ($—K + $-15,050,000K)
= —
Lowe's Companies Inc has shown a fluctuating trend in its Return on Total Capital ratio over the past few periods. From May 2019 to July 2021, the company experienced a steady increase in its return on total capital, reaching a peak of 2,449.66% in the second quarter of 2021. This substantial increase indicates that Lowe's was utilizing its total capital efficiently to generate profits during this period.
However, from July 2021 onwards, there was a notable decline in the Return on Total Capital ratio, dropping to 671.33% in the third quarter of 2021. This downward trend suggests a potential decrease in the company's efficiency in generating returns from its total capital.
It is crucial for investors and stakeholders to monitor Lowe's performance closely in upcoming periods to assess whether the company can improve its return on total capital and sustain profitability levels.
Peer comparison
Feb 2, 2024