Lowe’s Cos. Inc. (NYSE:LOW)

The analysis of the financial data over the six-year period reveals several notable trends in the composition of total assets.

Cash and Cash Equivalents

The proportion of cash and cash equivalents experienced significant fluctuations. It increased sharply from 1.81% in 2020 to a peak of 10.04% in 2021, followed by a decline to around 2.2% in 2024 before rising again to 4.09% in 2025. This volatility suggests changes in the company’s liquidity management or cash flow patterns during this period.

Short-term Investments

Short-term investments showed modest variability, increasing from 0.41% in 2020 to a high of 1.08% in 2021, then generally stabilizing around 0.6% to 0.9% in subsequent years. This pattern indicates some tactical adjustments in short-term investment holdings but without major shifts.

Merchandise Inventory, Net

Inventory as a percentage of total assets displayed an upward trend, rising consistently from 33.39% in 2020 to a peak of 42.4% in 2023. Although it slightly decreased thereafter to about 40.39% in 2025, the overall level remains elevated. This increase could reflect strategic inventory accumulation or responses to market demand changes.

Other Current Assets

Other current assets decreased from 3.2% in 2020 to 1.89% in 2025, showing a gradual reduction over time. This decline indicates a shrinking relative contribution of miscellaneous current assets within total assets.

Current Assets

Current assets as a whole fluctuated, increasing sharply to 47.77% in 2021, then falling to 44.94% in 2022 before a rebound to approximately 47.23% in 2025. These movements suggest ongoing shifts between current and noncurrent assets or changes in working capital components.

Property, Less Accumulated Depreciation

The share of property decreased from 47.3% in 2020 to about 41% in 2025, with minor oscillations in between. This downward trend represents a relative reduction in property holdings or potential revaluation effects.

Operating Lease Right-of-Use Assets

These assets maintained a fairly consistent proportion around 8% to 9.8% over the years, indicating stable leasing commitments or capitalization policies.

Long-term Investments

Long-term investments declined early on, dropping from 0.94% in 2020 to a low of 0.28% in 2023, then showed a slight recovery to 0.64% by 2025. The overall pattern points to a minor de-emphasis on long-term investment holdings.

Deferred Income Taxes, Net

Deferred income taxes fluctuated slightly but stayed within a narrow range between 0.37% and 0.73%, reflecting stable tax-related asset balances relative to total assets.

Other Assets

Other assets decreased marginally from 2.55% in 2020 to about 1.94% in 2025, suggesting a minor reduction in miscellaneous long-term asset categories.

Noncurrent Assets

Noncurrent assets as a percentage of total assets showed a steady decline from 61.19% in 2020 to approximately 52.77% in 2025. This contraction reflects the relative increase in current assets over time.

In summary, the data highlight a strategic shift toward higher proportions of current assets, particularly merchandise inventory, and a corresponding decrease in noncurrent assets like property. Liquidity levels demonstrated notable volatility, while long-term investments and other asset categories remained relatively stable or decreased slightly. These trends may indicate operational adjustments in inventory management and capital allocation over the observed period.