Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Lowe’s Cos. Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Federal	1,955)	2,226)	2,069)	1,578)	935)	963)
State	489)	561)	557)	425)	268)	274)
Current	2,444)	2,787)	2,626)	2,003)	1,203)	1,237)
Federal	3)	(179)	129)	(73)	121)	(102)
State	2)	(9)	11)	(26)	18)	(55)
Deferred	5)	(188)	140)	(99)	139)	(157)
Income tax provision	2,449)	2,599)	2,766)	1,904)	1,342)	1,080)

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Lowe’s Cos. Inc. current increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Lowe’s Cos. Inc. deferred decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Income tax provision	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Lowe’s Cos. Inc. income tax provision decreased from 2022 to 2023 and from 2023 to 2024.

Lowe’s Cos. Inc., effective income tax rate (EITR) reconciliation

	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
State income taxes, net of federal tax benefit	3.80%	4.80%	4.00%	4.00%	4.10%	4.80%
Valuation allowance	0.70%	5.50%	0.00%	0.00%	1.30%	0.00%
Expiration of capital loss carryforward	0.00%	2.50%	0.00%	0.00%	0.00%	0.00%
Loss on divestiture of Canadian retail business	-1.00%	-4.10%	0.00%	0.00%	0.00%	0.00%
Goodwill impairment	0.00%	0.00%	0.00%	0.00%	0.00%	5.50%
Mexico impairment	0.00%	0.00%	0.00%	0.00%	-1.40%	1.50%
Other, net	-0.40%	-0.90%	-0.30%	-0.40%	-1.10%	-1.00%
Effective tax rate	24.10%	28.80%	24.70%	24.60%	23.90%	31.80%

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Lowe’s Cos. Inc. effective tax rate increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Lowe’s Cos. Inc., components of deferred tax assets and liabilities

US$ in millions

	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Self-insurance	261)	267)	287)	284)	260)	252)
Share-based payment expense	49)	64)	53)	48)	30)	31)
Deferred rent	—)	—)	—)	—)	—)	58)
Operating lease liabilities	1,159)	1,126)	1,386)	1,328)	1,377)	—)
Mexico impairment	—)	—)	—)	—)	—)	74)
Capital loss carryforwards	695)	722)	225)	225)	225)	223)
Net operating losses	332)	409)	251)	274)	273)	239)
Other, net	446)	363)	242)	337)	131)	119)
Deferred tax assets	2,942)	2,951)	2,444)	2,496)	2,296)	996)
Valuation allowance	(1,133)	(1,136)	(590)	(601)	(561)	(569)
Net deferred tax assets	1,809)	1,815)	1,854)	1,895)	1,735)	427)
Operating lease right-of-use assets	(1,017)	(974)	(1,378)	(1,146)	(1,198)	—)
Property	(389)	(438)	(267)	(382)	(293)	(76)
Other, net	(155)	(153)	(45)	(27)	(28)	(57)
Deferred tax liabilities	(1,561)	(1,565)	(1,690)	(1,555)	(1,519)	(133)
Net deferred tax assets (liabilities)	248)	250)	164)	340)	216)	294)

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Lowe’s Cos. Inc. deferred tax assets increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Lowe’s Cos. Inc. net deferred tax assets decreased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Lowe’s Cos. Inc. net deferred tax assets (liabilities) increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Lowe’s Cos. Inc., deferred tax assets and liabilities, classification

US$ in millions

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
	Deferred tax assets	248)	250)	164)	340)	216)	294)

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Lowe’s Cos. Inc. deferred tax assets increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Lowe’s Cos. Inc., adjustments to financial statements

US$ in millions

	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Adjustment to Total Assets
Total assets (as reported)	41,795)	43,708)	44,640)	46,735)	39,471)	34,508)
Less: Noncurrent deferred tax assets, net	248)	250)	164)	340)	216)	294)
Total assets (adjusted)	41,547)	43,458)	44,476)	46,395)	39,255)	34,214)
Adjustment to Shareholders’ Equity (deficit)
Shareholders’ equity (deficit) (as reported)	(15,050)	(14,254)	(4,816)	1,437)	1,972)	3,644)
Less: Net deferred tax assets (liabilities)	248)	250)	164)	340)	216)	294)
Shareholders’ equity (deficit) (adjusted)	(15,298)	(14,504)	(4,980)	1,097)	1,756)	3,350)
Adjustment to Net Earnings
Net earnings (as reported)	7,726)	6,437)	8,442)	5,835)	4,281)	2,314)
Add: Deferred income tax expense (benefit)	5)	(188)	140)	(99)	139)	(157)
Net earnings (adjusted)	7,731)	6,249)	8,582)	5,736)	4,420)	2,157)

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

Lowe’s Cos. Inc., Financial Data: Reported vs. Adjusted

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Lowe’s Cos. Inc., adjusted financial ratios

	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Net Profit Margin
Reported net profit margin	8.94%	6.63%	8.77%	6.51%	5.93%	3.25%
Adjusted net profit margin	8.95%	6.44%	8.92%	6.40%	6.13%	3.02%
Total Asset Turnover
Reported total asset turnover	2.07	2.22	2.16	1.92	1.83	2.07
Adjusted total asset turnover	2.08	2.23	2.16	1.93	1.84	2.08
Financial Leverage
Reported financial leverage	—	—	—	32.52	20.02	9.47
Adjusted financial leverage	—	—	—	42.29	22.35	10.21
Return on Equity (ROE)
Reported ROE	—	—	—	406.05%	217.09%	63.50%
Adjusted ROE	—	—	—	522.88%	251.71%	64.39%
Return on Assets (ROA)
Reported ROA	18.49%	14.73%	18.91%	12.49%	10.85%	6.71%
Adjusted ROA	18.61%	14.38%	19.30%	12.36%	11.26%	6.30%

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Lowe’s Cos. Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Lowe’s Cos. Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Lowe’s Cos. Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Lowe’s Cos. Inc., Financial Ratios: Reported vs. Adjusted

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	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	7,726)	6,437)	8,442)	5,835)	4,281)	2,314)
Net sales	86,377)	97,059)	96,250)	89,597)	72,148)	71,309)
Profitability Ratio
Net profit margin¹	8.94%	6.63%	8.77%	6.51%	5.93%	3.25%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	7,731)	6,249)	8,582)	5,736)	4,420)	2,157)
Net sales	86,377)	97,059)	96,250)	89,597)	72,148)	71,309)
Profitability Ratio
Adjusted net profit margin²	8.95%	6.44%	8.92%	6.40%	6.13%	3.02%

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

2024 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 7,726 ÷ 86,377 = 8.94%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 7,731 ÷ 86,377 = 8.95%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Lowe’s Cos. Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	86,377)	97,059)	96,250)	89,597)	72,148)	71,309)
Total assets	41,795)	43,708)	44,640)	46,735)	39,471)	34,508)
Activity Ratio
Total asset turnover¹	2.07	2.22	2.16	1.92	1.83	2.07
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	86,377)	97,059)	96,250)	89,597)	72,148)	71,309)
Adjusted total assets	41,547)	43,458)	44,476)	46,395)	39,255)	34,214)
Activity Ratio
Adjusted total asset turnover²	2.08	2.23	2.16	1.93	1.84	2.08

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

2024 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 86,377 ÷ 41,795 = 2.07

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 86,377 ÷ 41,547 = 2.08

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Lowe’s Cos. Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	41,795)	43,708)	44,640)	46,735)	39,471)	34,508)
Shareholders’ equity (deficit)	(15,050)	(14,254)	(4,816)	1,437)	1,972)	3,644)
Solvency Ratio
Financial leverage¹	—	—	—	32.52	20.02	9.47
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	41,547)	43,458)	44,476)	46,395)	39,255)	34,214)
Adjusted shareholders’ equity (deficit)	(15,298)	(14,504)	(4,980)	1,097)	1,756)	3,350)
Solvency Ratio
Adjusted financial leverage²	—	—	—	42.29	22.35	10.21

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 41,795 ÷ -15,050 = —

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 41,547 ÷ -15,298 = —

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	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	7,726)	6,437)	8,442)	5,835)	4,281)	2,314)
Shareholders’ equity (deficit)	(15,050)	(14,254)	(4,816)	1,437)	1,972)	3,644)
Profitability Ratio
ROE¹	—	—	—	406.05%	217.09%	63.50%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	7,731)	6,249)	8,582)	5,736)	4,420)	2,157)
Adjusted shareholders’ equity (deficit)	(15,298)	(14,504)	(4,980)	1,097)	1,756)	3,350)
Profitability Ratio
Adjusted ROE²	—	—	—	522.88%	251.71%	64.39%

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

2024 Calculations

¹ ROE = 100 × Net earnings ÷ Shareholders’ equity (deficit)
= 100 × 7,726 ÷ -15,050 = —

² Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted shareholders’ equity (deficit)
= 100 × 7,731 ÷ -15,298 = —

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	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	7,726)	6,437)	8,442)	5,835)	4,281)	2,314)
Total assets	41,795)	43,708)	44,640)	46,735)	39,471)	34,508)
Profitability Ratio
ROA¹	18.49%	14.73%	18.91%	12.49%	10.85%	6.71%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	7,731)	6,249)	8,582)	5,736)	4,420)	2,157)
Adjusted total assets	41,547)	43,458)	44,476)	46,395)	39,255)	34,214)
Profitability Ratio
Adjusted ROA²	18.61%	14.38%	19.30%	12.36%	11.26%	6.30%

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

2024 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 7,726 ÷ 41,795 = 18.49%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 7,731 ÷ 41,547 = 18.61%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Lowe’s Cos. Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Lowe’s Cos. Inc. (NYSE:LOW)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Lowe’s Cos. Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Lowe’s Cos. Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)