An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

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

US$ in millions

	Jan 30, 2026	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021
Adjustment to Total Assets
Total assets (as reported)	54,144)	43,102)	41,795)	43,708)	44,640)	46,735)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)	—)
Total assets (adjusted)	54,144)	43,102)	41,795)	43,708)	44,640)	46,735)
Adjustment to Total Debt
Total debt (as reported)	39,921)	35,487)	35,921)	33,960)	24,727)	21,780)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	—)	—)	—)
Add: Current operating lease liabilities	713)	563)	487)	522)	636)	541)
Add: Noncurrent operating lease liabilities	4,043)	3,628)	3,737)	3,512)	4,021)	3,890)
Total debt (adjusted)	44,677)	39,678)	40,145)	37,994)	29,384)	26,211)

Based on: 10-K (reporting date: 2026-01-30), 10-K (reporting date: 2025-01-31), 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).

^{1, 2} Equal to total present value of future operating lease payments.

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

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Lowe’s Cos. Inc., adjusted financial ratios

	Jan 30, 2026	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021
Total Asset Turnover¹
Reported total asset turnover	1.59	1.94	2.07	2.22	2.16	1.92
Adjusted total asset turnover	1.59	1.94	2.07	2.22	2.16	1.92
Debt to Equity²
Reported debt to equity	—	—	—	—	—	15.16
Adjusted debt to equity	—	—	—	—	—	18.24
Return on Assets³ (ROA)
Reported ROA	12.29%	16.14%	18.49%	14.73%	18.91%	12.49%
Adjusted ROA	12.29%	16.14%	18.49%	14.73%	18.91%	12.49%

Based on: 10-K (reporting date: 2026-01-30), 10-K (reporting date: 2025-01-31), 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).

¹ See details »

² See details »

³ See details »

Financial 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 deteriorated from 2024 to 2025 and from 2025 to 2026.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Lowe’s Cos. Inc. adjusted ROA deteriorated from 2024 to 2025 and from 2025 to 2026.

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

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	Jan 30, 2026	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021
As Reported
Selected Financial Data (US$ in millions)
Net sales	86,286)	83,674)	86,377)	97,059)	96,250)	89,597)
Total assets	54,144)	43,102)	41,795)	43,708)	44,640)	46,735)
Activity Ratio
Total asset turnover¹	1.59	1.94	2.07	2.22	2.16	1.92
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net sales	86,286)	83,674)	86,377)	97,059)	96,250)	89,597)
Adjusted total assets	54,144)	43,102)	41,795)	43,708)	44,640)	46,735)
Activity Ratio
Adjusted total asset turnover²	1.59	1.94	2.07	2.22	2.16	1.92

Based on: 10-K (reporting date: 2026-01-30), 10-K (reporting date: 2025-01-31), 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).

2026 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 86,286 ÷ 54,144 = 1.59

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 86,286 ÷ 54,144 = 1.59

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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 deteriorated from 2024 to 2025 and from 2025 to 2026.

	Jan 30, 2026	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021
As Reported
Selected Financial Data (US$ in millions)
Total debt	39,921)	35,487)	35,921)	33,960)	24,727)	21,780)
Shareholders’ equity (deficit)	(9,917)	(14,231)	(15,050)	(14,254)	(4,816)	1,437)
Solvency Ratio
Debt to equity¹	—	—	—	—	—	15.16
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt	44,677)	39,678)	40,145)	37,994)	29,384)	26,211)
Shareholders’ equity (deficit)	(9,917)	(14,231)	(15,050)	(14,254)	(4,816)	1,437)
Solvency Ratio
Adjusted debt to equity²	—	—	—	—	—	18.24

Based on: 10-K (reporting date: 2026-01-30), 10-K (reporting date: 2025-01-31), 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).

2026 Calculations

¹ Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 39,921 ÷ -9,917 = —

² Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity (deficit)
= 44,677 ÷ -9,917 = —

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	Jan 30, 2026	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021
As Reported
Selected Financial Data (US$ in millions)
Net earnings	6,654)	6,957)	7,726)	6,437)	8,442)	5,835)
Total assets	54,144)	43,102)	41,795)	43,708)	44,640)	46,735)
Profitability Ratio
ROA¹	12.29%	16.14%	18.49%	14.73%	18.91%	12.49%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net earnings	6,654)	6,957)	7,726)	6,437)	8,442)	5,835)
Adjusted total assets	54,144)	43,102)	41,795)	43,708)	44,640)	46,735)
Profitability Ratio
Adjusted ROA²	12.29%	16.14%	18.49%	14.73%	18.91%	12.49%

Based on: 10-K (reporting date: 2026-01-30), 10-K (reporting date: 2025-01-31), 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).

2026 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 6,654 ÷ 54,144 = 12.29%

² Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 6,654 ÷ 54,144 = 12.29%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Lowe’s Cos. Inc. adjusted ROA deteriorated from 2024 to 2025 and from 2025 to 2026.

Lowe’s Cos. Inc. (NYSE:LOW)

Analysis of Operating Leases

Adjustments to Financial Statements for Operating Leases

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

Adjusted Financial Ratios for Operating Leases (Summary)

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

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)