Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Lowe’s Cos. Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Lowe’s Cos. Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Lowe’s Cos. Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Lowe’s Cos. Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Lowe’s Cos. Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Gross Profit Margin
Lowe’s Cos. Inc., gross profit margin calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross margin | 28,844) | 32,257) | 32,056) | 29,572) | 22,943) | 22,908) | |
| Net sales | 86,377) | 97,059) | 96,250) | 89,597) | 72,148) | 71,309) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 33.39% | 33.23% | 33.30% | 33.01% | 31.80% | 32.12% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 46.98% | 43.81% | 42.03% | 39.57% | 40.99% | |
| Home Depot Inc. | 33.38% | 33.53% | 33.63% | 33.95% | 34.09% | 34.34% | |
| TJX Cos. Inc. | 30.00% | 27.61% | 28.50% | 23.66% | 28.46% | 28.59% | |
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).
1 2024 Calculation
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 28,844 ÷ 86,377 = 33.39%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Lowe’s Cos. Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Operating Profit Margin
Lowe’s Cos. Inc., operating profit margin calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 11,557) | 10,159) | 12,093) | 9,647) | 6,314) | 4,018) | |
| Net sales | 86,377) | 97,059) | 96,250) | 89,597) | 72,148) | 71,309) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 13.38% | 10.47% | 12.56% | 10.77% | 8.75% | 5.63% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 6.41% | 2.38% | 5.30% | 5.93% | 5.18% | |
| Home Depot Inc. | 14.21% | 15.27% | 15.24% | 13.84% | 14.37% | 14.35% | |
| TJX Cos. Inc. | 10.69% | 9.73% | 9.79% | 1.81% | 10.59% | 10.82% | |
| Operating Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 8.63% | 6.44% | 7.38% | 8.11% | 7.68% | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 9.12% | 8.07% | 8.16% | 5.53% | 7.81% | |
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).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 11,557 ÷ 86,377 = 13.38%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Lowe’s Cos. Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Net Profit Margin
Lowe’s Cos. Inc., net profit margin calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 5.29% | -0.53% | 7.10% | 5.53% | 4.13% | |
| Home Depot Inc. | 9.92% | 10.87% | 10.87% | 9.74% | 10.20% | 10.28% | |
| TJX Cos. Inc. | 8.25% | 7.00% | 6.76% | 0.28% | 7.84% | 7.85% | |
| Net Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 6.54% | 3.14% | 7.21% | 6.58% | 5.63% | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 7.80% | 4.64% | 8.35% | 4.16% | 6.11% | |
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).
1 2024 Calculation
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 7,726 ÷ 86,377 = 8.94%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Lowe’s Cos. Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Return on Equity (ROE)
Lowe’s Cos. Inc., ROE calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Amazon.com Inc. | — | 15.07% | -1.86% | 24.13% | 22.84% | 18.67% | |
| Home Depot Inc. | 1,450.48% | 1,095.07% | — | 390.00% | — | — | |
| TJX Cos. Inc. | 61.27% | 54.97% | 54.69% | 1.55% | 55.01% | 60.61% | |
| ROE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 29.39% | 17.48% | 35.05% | 40.86% | 40.77% | |
| ROE, Industry | |||||||
| Consumer Discretionary | — | 30.04% | 19.29% | 30.07% | 18.30% | 31.39% | |
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).
1 2024 Calculation
ROE = 100 × Net earnings ÷ Shareholders’ equity (deficit)
= 100 × 7,726 ÷ -15,050 = —
2 Click competitor name to see calculations.
Return on Assets (ROA)
Lowe’s Cos. Inc., ROA calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Amazon.com Inc. | — | 5.76% | -0.59% | 7.93% | 6.64% | 5.14% | |
| Home Depot Inc. | 19.79% | 22.38% | 22.86% | 18.23% | 21.94% | 25.27% | |
| TJX Cos. Inc. | 15.04% | 12.34% | 11.53% | 0.29% | 13.55% | 21.36% | |
| ROA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 8.50% | 4.19% | 9.17% | 9.20% | 8.83% | |
| ROA, Industry | |||||||
| Consumer Discretionary | — | 7.41% | 4.34% | 7.05% | 3.37% | 5.62% | |
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).
1 2024 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 7,726 ÷ 41,795 = 18.49%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Lowe’s Cos. Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |