Lowe’s Cos. Inc. (NYSE:LOW)

Total assets exhibited a generally declining trend from 2021 through 2024, followed by increases in the subsequent two years. The adjusted total assets mirrored this pattern closely. The difference between reported and adjusted total assets remained relatively consistent across the observed period.

Overall Trend

From January 29, 2021, to February 2, 2024, total assets decreased from US$46,735 million to US$41,795 million, representing a cumulative decline of approximately 10.7%. However, a reversal is noted in 2024 and 2025, with assets increasing to US$43,102 million, and a substantial increase to US$54,144 million by January 30, 2026.

Year-over-Year Changes

The largest year-over-year decrease in total assets occurred between 2022 and 2023, with a reduction of US$932 million. The most significant increase occurred between 2025 and 2026, with an increase of US$10,042 million. The period between 2023 and 2024 saw a decrease of US$2,251 million.

Adjusted Total Assets vs. Total Assets

The difference between total assets and adjusted total assets remained relatively stable throughout the period, fluctuating between approximately US$340 million and US$390 million. This suggests that the adjustments applied are consistent in nature and magnitude. The adjusted total assets consistently tracked the movements of the total assets.

The substantial increase in total assets in 2026 warrants further investigation to understand the underlying drivers of this change. The consistent, though relatively small, adjustment to total assets suggests a recurring accounting treatment impacting the reported figures.

Current liabilities exhibited an initial increase followed by a significant decrease and subsequent recovery over the observed period. Reported current liabilities rose from US$18,730 million in January 2021 to US$19,668 million in January 2022, representing a 5.0% increase. A slight decrease followed in February 2023, with current liabilities reported at US$19,511 million. However, a substantial decline occurred between February 2023 and February 2024, with current liabilities falling to US$15,568 million, a decrease of approximately 20.2%. The final two years demonstrate a recovery, increasing to US$18,757 million in January 2025 and US$19,463 million in January 2026.

Adjusted Current Liabilities Trend

Adjusted current liabilities mirrored the trend of reported current liabilities, though the magnitudes of change differed. Adjusted current liabilities increased from US$17,122 million in January 2021 to US$17,754 million in January 2022, a 3.7% increase. A modest increase continued into February 2023, reaching US$17,908 million. Similar to the reported figures, a significant decrease was observed between February 2023 and February 2024, with adjusted current liabilities falling to US$14,160 million, a decrease of approximately 20.8%. The subsequent years show a recovery, rising to US$17,399 million in January 2025 and US$17,986 million in January 2026.

The difference between reported and adjusted current liabilities remained relatively consistent throughout the period. The adjustment consistently reduced the reported value, suggesting the presence of items being reclassified or refined in the adjusted figures. The largest absolute difference between the two figures occurred in February 2024, at US$1,408 million, indicating a potentially significant adjustment in that year. The adjustments appear to be consistently applied, as the difference between the two liability measures does not exhibit a pronounced trend of increasing or decreasing over time.

Percentage Change Analysis

The largest percentage decrease in both reported and adjusted current liabilities occurred between February 2023 and February 2024. This suggests a deliberate action taken to reduce short-term obligations during that period, or a reclassification of liabilities to longer-term categories. The recovery observed in the final two years indicates a rebuilding of short-term obligations, potentially due to increased operational needs or financing activities.

Overall, the fluctuations in both reported and adjusted current liabilities suggest dynamic changes in the company’s short-term financial position. The substantial decrease in February 2024 warrants further investigation to understand the underlying causes and their implications for liquidity and financial flexibility.

Total liabilities exhibited an overall increasing trend from January 29, 2021, to January 30, 2026. However, this progression was not consistently upward, with a notable decrease observed between February 3, 2023, and February 2, 2024. Adjusted total liabilities mirrored this general pattern, also demonstrating an increase over the period, though with a similar dip in the 2023-2024 timeframe. The magnitude of the increase in both metrics appears to be accelerating in the later years of the observed period.

Overall Trend

From 2021 to 2026, total liabilities increased from US$45,298 million to US$64,061 million, representing a cumulative growth of approximately 41.5%. Adjusted total liabilities followed a similar trajectory, rising from US$42,671 million to US$60,283 million, a growth of roughly 41.2% over the same period.

Year-over-Year Changes

The largest year-over-year increase in total liabilities occurred between 2022 and 2023, with a rise of US$8,506 million. Adjusted total liabilities experienced its largest increase during the same period, growing by US$7,243 million. The period between 2023 and 2024 saw a decrease in both total liabilities (US$1,117 million) and adjusted total liabilities (US$733 million), representing the only observed declines within the timeframe.

Relationship Between Metrics

The difference between total liabilities and adjusted total liabilities remained relatively consistent throughout the period, generally ranging between US$2,600 million and US$3,800 million. This suggests that the adjustments applied are systematic and do not represent substantial shifts in the underlying liability structure. The adjustments consistently reduce the reported total liabilities.

Recent Developments

Both total liabilities and adjusted total liabilities show renewed growth between 2024 and 2026. The increase from 2025 to 2026 is particularly pronounced, with total liabilities growing by US$6,728 million and adjusted total liabilities increasing by US$5,576 million. This suggests a potential acceleration in the company’s reliance on liabilities or a significant change in its financing strategy.

Shareholders’ equity exhibits a significant and concerning trajectory over the observed period. Initially positive, it rapidly declines into a substantial deficit, reaching a peak negative value in 2023 before showing some, albeit limited, improvement in subsequent years. Adjusted shareholders’ equity mirrors this pattern, though the magnitude of the deficit is consistently lower than that of the unadjusted equity. The difference between the two equity measures suggests the presence of adjustments impacting the reported equity position.

Shareholders’ Equity Trend

From a positive value of US$1,437 million in 2021, shareholders’ equity decreased dramatically to a deficit of US$4,816 million in 2022. This decline accelerated in 2023, reaching a deficit of US$14,254 million. While the deficit remained substantial in 2024 at US$15,050 million, a slight improvement is noted in 2025 (US$14,231 million) and further in 2026 (US$9,917 million), indicating a potential stabilization, though still representing a considerable negative equity position.

Adjusted Shareholders’ Equity Trend

Adjusted shareholders’ equity begins at US$3,724 million in 2021, significantly higher than the reported shareholders’ equity. It then decreases to a deficit of US$1,939 million in 2022, followed by a larger deficit of US$11,700 million in 2023. Similar to the unadjusted equity, the adjusted equity deficit peaks in 2024 at US$12,665 million, then shows modest improvement in 2025 (US$11,849 million) and 2026 (US$6,139 million). The consistent difference between adjusted and unadjusted equity suggests the impact of specific adjustments, potentially related to accumulated other comprehensive income, unrealized gains/losses, or other equity-related items.

Equity Deficit Magnitude

The substantial deficits in both shareholders’ equity and adjusted shareholders’ equity raise concerns about the company’s financial health and solvency. The magnitude of the deficits, particularly in 2023 and 2024, warrants further investigation into the underlying causes. The observed improvements in 2025 and 2026, while positive, are from a deeply negative base and require continued monitoring to assess their sustainability.

Adjustment Impact

The consistent positive difference between adjusted and unadjusted shareholders’ equity throughout the period indicates that adjustments are increasing the reported equity position. The size of this adjustment varies annually, but consistently lessens the severity of the equity deficit. Understanding the nature of these adjustments is crucial for a complete assessment of the company’s financial position.

In summary, the observed trends indicate a significant deterioration in shareholders’ equity, followed by a limited recovery. The adjustments to shareholders’ equity consistently mitigate the reported deficit, highlighting the importance of understanding the composition of these adjustments. Continued monitoring of these trends is recommended.

Over the observed period, significant fluctuations are evident in the reported and adjusted capitalization components. Total reported debt demonstrates a consistent upward trajectory, increasing from US$21,780 million in January 2021 to US$39,921 million in January 2026. Shareholders’ equity, conversely, exhibits a substantial decline, transitioning from a positive value of US$1,437 million to a deficit of US$9,917 million over the same timeframe. Consequently, total reported capital initially decreases before stabilizing and then increasing, ending at US$30,004 million.

The adjusted figures reveal a different dynamic. Adjusted total debt consistently increases, mirroring the trend in reported debt, and reaches US$44,677 million by January 2026. Adjusted shareholders’ equity also shows a decline, though less dramatic than the reported equity, moving from US$3,724 million to a deficit of US$6,139 million. Adjusted total capital initially decreases, then plateaus, and finally increases, reaching US$38,538 million.

Debt Trends

Both reported and adjusted total debt show a clear increasing trend throughout the period. The difference between reported and adjusted debt widens over time, suggesting increasing adjustments are being made to the initially reported debt figures. The largest increase in adjusted total debt occurs between January 2025 and January 2026, with an increase of US$4,846 million.

Equity Trends

Shareholders’ equity experiences a more pronounced decline than the increase in debt. The gap between reported and adjusted shareholders’ equity also widens, indicating that adjustments significantly reduce the equity position. The adjusted equity deficit is consistently less severe than the reported equity deficit, suggesting adjustments are adding value back to equity, though not enough to offset the overall decline.

Capital Structure Changes

The relationship between debt and equity is shifting. The increasing debt and decreasing equity suggest a growing reliance on debt financing. The adjusted total capital figures show a similar pattern, though the magnitude of the changes is somewhat dampened by the adjustments. The increase in adjusted total capital in the final two periods suggests a potential stabilization or improvement in the capital structure, despite the continued increase in debt.

The adjustments to both debt and equity are substantial and warrant further investigation to understand the underlying reasons. The consistent upward trend in adjusted debt, coupled with the declining adjusted equity, indicates a potential increase in financial risk over the period. The final period shows a more positive trend in adjusted total capital, but continued monitoring is necessary to determine if this represents a sustainable shift.

Net sales exhibited an initial increase followed by a subsequent decline over the observed period. From January 29, 2021, to January 28, 2022, net sales increased from US$89,597 million to US$96,250 million. This growth was followed by a modest increase to US$97,059 million as of February 3, 2023. However, a significant decrease in net sales was then observed, falling to US$86,377 million by February 2, 2024. This downward trend continued into the following years, reaching US$83,674 million on January 31, 2025, before a slight recovery to US$86,286 million by January 30, 2026.

Adjusted Net Sales Trend

The trend in adjusted net sales closely mirrors that of net sales. An increase from US$90,111 million in January 29, 2021, to US$96,664 million in January 28, 2022, is followed by a further increase to US$96,822 million in February 3, 2023. Similar to net sales, adjusted net sales then decreased to US$86,206 million by February 2, 2024, continuing to US$83,667 million on January 31, 2025, and recovering slightly to US$86,399 million by January 30, 2026.

The difference between net sales and adjusted net sales remains relatively consistent across the observed period, generally ranging between US$500 million and US$800 million. This suggests that the adjustments made to arrive at adjusted net sales are consistently applied and do not represent a material shift in revenue recognition practices. The adjustments appear to be minor relative to the overall revenue figures.

Comparative Growth Rates

The growth rate from 2021 to 2022 was approximately 7.4% for net sales and 7.2% for adjusted net sales. The growth from 2022 to 2023 was minimal, at approximately 0.8% for both metrics. The decline from 2023 to 2024 was more substantial, with net sales decreasing by approximately 10.7% and adjusted net sales decreasing by approximately 10.5%. The period from 2024 to 2025 shows a further decline, and the final period shows a slight recovery, but not to the levels seen in 2022 or 2023.

In summary, the period demonstrates an initial phase of growth, followed by a period of decline and a very slight recovery. The adjustments to net sales do not significantly alter the observed trends.

Net earnings exhibited volatility over the observed period. Beginning at US$5,835 million in January 2021, net earnings increased substantially to US$8,442 million in January 2022. A subsequent decline to US$6,437 million occurred in February 2023, followed by a recovery to US$7,726 million in February 2024. Net earnings then decreased to US$6,957 million in January 2025 and continued to decline slightly to US$6,654 million in January 2026.

Adjusted Net Earnings Trend

Adjusted net earnings generally mirrored the trend of net earnings, but with consistently higher values. Starting at US$6,250 million in January 2021, adjusted net earnings rose to US$9,096 million in January 2022, representing the largest single-year increase in the series. Similar to net earnings, adjusted net earnings decreased to US$6,355 million in February 2023, before increasing to US$7,553 million in February 2024. A slight decrease to US$6,946 million was observed in January 2025, followed by a modest increase to US$7,014 million in January 2026.

The difference between net earnings and adjusted net earnings remained relatively consistent throughout the period. The adjustments typically resulted in a higher reported earnings figure, suggesting the presence of non-recurring items or other adjustments that positively impacted the bottom line. The magnitude of the adjustment ranged from approximately US$415 million to US$654 million annually.

Year-over-Year Changes

The largest year-over-year increase in net earnings occurred between 2021 and 2022, with an increase of US$2,607 million. The largest decrease in net earnings occurred between 2022 and 2023, with a decrease of US$1,999 million. Similar patterns were observed in adjusted net earnings.

From 2024 to 2026, both net earnings and adjusted net earnings exhibited a more stable, albeit slightly declining, trend. The adjustments to reported income appear to be a consistent feature of the company’s financial reporting, and their impact should be considered when evaluating overall performance.