Lowe’s Cos. Inc. (NYSE:LOW)

The analysis of asset composition over the quarters reveals several noteworthy trends and shifts in the structure of the company's financial position.

Cash and Cash Equivalents

There is significant volatility in the proportion of cash and cash equivalents relative to total assets. The ratio peaked sharply at 22.49% in July 2020, likely reflecting a strategic liquidity build-up during that period, then fluctuated downward with intermittent rises, settling at 10.43% by August 2025. This suggests periodic adjustments to liquidity reserves, possibly in response to changing operational or market conditions.

Short-term Investments

This category maintained a relatively low and stable proportion, generally below 3.0%, with occasional increases such as 3.64% in October 2020 and 2.87% in July 2021. Overall, short-term investments constitute a minor component of total assets, indicating limited emphasis on short-term marketable securities.

Merchandise Inventory, Net

Inventory levels as a percentage of total assets exhibit cycles of increase and moderate decrease. Starting at 34.77% in May 2019, inventory dipped to a low near 26.72% in July 2020, then rose steadily to reach a peak of 42.52% in August 2023. Afterward, it trended slightly downward, ending at 35.06% in August 2025. This pattern may reflect fluctuations in inventory management strategies, supply chain dynamics, or changes in demand.

Other Current Assets

The share of other current assets remained relatively stable, fluctuating narrowly between approximately 1.79% and 3.24%. This stability suggests consistent management of miscellaneous current assets without significant shifts over the observed period.

Current Assets

The total current assets ratio shows considerable variation, peaking at over 53% in several quarters, including July 2020 and October 2022. These peaks are largely driven by the cash and inventory components. The downward movements, such as the decline to 38.81% in January 2020, indicate phases of asset reallocation potentially favoring noncurrent assets. Overall, current assets demonstrate a tendency to fluctuate in response to operational liquidity needs.

Property, Less Accumulated Depreciation

This asset category generally holds a substantial and relatively stable portion of total assets, averaging around 38% to 42%. There are some decreases in percentages in mid-2020, correlating with increases in current assets, which may indicate shifts in capital expenditures or asset disposals. The data lacks extreme volatility, pointing to consistent investment in property assets.

Operating Lease Right-of-Use Assets

This category remained a minor but stable portion of total assets, hovering around 7% to 9% throughout the periods. The relatively flat trend suggests that leasing obligations and associated right-of-use assets were maintained with minimal change.

Long-term Investments

Proportions of long-term investments are quite low, generally under 1%, with slight increases observed toward the later periods, rising to 0.85% in August 2025. This indicates a conservative approach to long-term investment holdings.

Deferred Income Taxes, Net

The ratio of deferred income taxes to total assets is relatively small and variable, generally below 1%. Notable decreases occurred in the early quarters, with some recovery in later periods, but no clear upward or downward long-term trend is evident.

Intangibles and Goodwill

Data on intangibles and goodwill is only available for the final reported period (August 2025), showing 2.09% and 1.48% respectively. The presence of these assets in the last period points to potentially recent acquisitions or reclassifications affecting intangible asset recognition.

Other Assets

This category remains a small and fairly stable portion of total assets, fluctuating narrowly around 1.5% to 2.5%, with a slight downward movement toward the most recent quarter, possibly reflecting asset disposals or reclassifications.

Noncurrent Assets

The noncurrent assets percentage exhibited notable fluctuations, peaking above 60% in late 2019 and early 2020, then experiencing a drop to below 47% mid-2020, before stabilizing around 50% in the most recent periods. This indicates shifting asset allocation between current and noncurrent holdings, possibly linked to operational scaling or capital structure adjustments.

Total Assets

Total assets are normalized to 100% for all periods to serve as the base for ratio analysis.

In summary, the company's asset structure shows a cyclic pattern of liquidity and inventory management, with substantial changes in cash reserves and inventory proportions. The property and noncurrent asset base remains significant and relatively stable, while short-term and long-term investments constitute a minor portion. The inclusion of intangibles and goodwill in the final periods suggests potential recent acquisitions or accounting changes. Overall, the data reflects dynamic asset management likely responsive to shifting operational needs and external economic conditions over time.