Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Lowe’s Cos. Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Net earnings	6,957)	7,726)	6,437)	8,442)	5,835)	4,281)
Depreciation and amortization	1,972)	1,923)	1,981)	1,882)	1,594)	1,410)
Noncash lease expense	520)	499)	530)	517)	479)	468)
Deferred income taxes	9)	6)	(239)	135)	(108)	177)
Asset impairment and loss on property, net	5)	83)	2,118)	34)	139)	117)
(Gain) loss on sale of business	(177)	(79)	421)	—)	—)	—)
Loss on extinguishment of debt	—)	—)	—)	—)	1,060)	—)
Share-based payment expense	221)	210)	223)	230)	155)	98)
Merchandise inventory, net	(514)	1,637)	(2,594)	(1,413)	(2,967)	(600)
Other operating assets	93)	182)	56)	(23)	326)	(364)
Accounts payable	633)	(1,820)	(549)	466)	3,211)	(637)
Other operating liabilities	(94)	(2,227)	205)	(157)	1,325)	(654)
Changes in operating assets and liabilities	118)	(2,228)	(2,882)	(1,127)	1,895)	(2,255)
Adjustments to reconcile net earnings to net cash provided by operating activities	2,668)	414)	2,152)	1,671)	5,214)	15)
Net cash provided by operating activities	9,625)	8,140)	8,589)	10,113)	11,049)	4,296)
Purchases of investments	(1,286)	(1,785)	(1,189)	(3,065)	(3,094)	(743)
Proceeds from sale/maturity of investments	1,204)	1,722)	1,174)	3,293)	2,926)	695)
Capital expenditures	(1,927)	(1,964)	(1,829)	(1,853)	(1,791)	(1,484)
Proceeds from sale of property and other long-term assets	105)	53)	45)	113)	90)	163)
Proceeds from sale of business	177)	100)	491)	—)	—)	—)
Other, net	(11)	(27)	(1)	(134)	(25)	—)
Net cash used in investing activities	(1,738)	(1,901)	(1,309)	(1,646)	(1,894)	(1,369)
Net change in commercial paper	—)	(499)	499)	—)	(941)	220)
Net proceeds from issuance of debt	—)	2,983)	9,667)	4,972)	7,929)	3,972)
Repayment of debt	(545)	(601)	(867)	(2,118)	(5,618)	(1,113)
Proceeds from issuance of common stock under share-based payment plans	159)	141)	151)	132)	152)	118)
Cash dividend payments	(2,566)	(2,531)	(2,370)	(1,984)	(1,704)	(1,618)
Repurchases of common stock	(4,053)	(6,138)	(14,124)	(13,012)	(4,971)	(4,313)
Other, net	(42)	(21)	(5)	(6)	(38)	(1)
Net cash used in financing activities	(7,047)	(6,666)	(7,049)	(12,016)	(5,191)	(2,735)
Effect of exchange rate changes on cash	—)	—)	(16)	(8)	10)	1)
Net increase (decrease) in cash and cash equivalents, including cash classified within current assets held for sale	840)	(427)	215)	(3,557)	3,974)	193)
Net (increase) decrease in cash classified within current assets held for sale	—)	—)	—)	—)	—)	12)
Net increase (decrease) in cash and cash equivalents	840)	(427)	215)	(3,557)	3,974)	205)
Cash and cash equivalents, beginning of year	921)	1,348)	1,133)	4,690)	716)	511)
Cash and cash equivalents, end of year	1,761)	921)	1,348)	1,133)	4,690)	716)

Based on: 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), 10-K (reporting date: 2020-01-31).

Net Earnings: Net earnings show a generally positive trend from 2020 through 2024, with an increase from $4,281 million in 2020 to a peak of $7,726 million in 2024. However, in 2025, net earnings declined to $6,957 million, indicating some volatility after a strong upward trajectory.
Depreciation and Amortization: Depreciation and amortization expenses steadily increased over the six-year period, rising from $1,410 million in 2020 to $1,972 million in 2025. This suggests growth in the company’s asset base or increased capital expenditures.
Noncash Lease Expense: A consistent but moderate increase in noncash lease expenses is observed, moving from $468 million in 2020 to $520 million in 2025, reflecting ongoing lease obligations and possibly new lease contracts.
Deferred Income Taxes: Deferred income taxes fluctuate between positive and negative values throughout the years without a clear trend, with notable negative figures in 2021 and 2023, indicating irregular tax timing differences impacting the financial results.
Asset Impairment and Loss on Property: This item is mostly stable with minor fluctuations until 2023, where it spikes dramatically to $2,118 million, suggesting a significant impairment event occurred that year. It then sharply declines in the subsequent years.
(Gain) Loss on Sale of Business: There are no recorded amounts until 2023, when a gain of $421 million appears, followed by losses in 2024 and 2025. This indicates the company engaged in business sales activities that impacted financials variably across these years.
Loss on Extinguishment of Debt: A large loss of $1,060 million was recorded in 2021, signaling a one-time significant cost related to debt retirement or refinancing during that year.
Share-Based Payment Expense: This expense increased from $98 million in 2020 to $230 million in 2022 before slightly declining and stabilizing around the $210-$220 million range, reflecting consistent employee compensation costs related to stock-based incentives.
Working Capital Components and Changes: The merchandise inventory values show fluctuations, with negative changes turning positive in 2024 before returning to negative in 2025, indicating variability in inventory management or sales cycles. Other operating assets and liabilities exhibit irregular changes but with relatively small net impacts compared to other items. Accounts payable and other operating liabilities show intermittent positive and negative shifts, contributing to volatility in changes in operating assets and liabilities.
Net Cash Provided by Operating Activities: Operating cash flow increased significantly from $4,296 million in 2020 to peak at $11,049 million in 2021. This level softened but remained strong in subsequent years, ending at $9,625 million in 2025, indicating robust cash generation capacity despite some year-to-year fluctuations.
Investing Activities: Purchases of investments fluctuated, with a peak of $3,094 million in 2021 but decreasing notably by 2025. Proceeds from maturing investments follow a similar pattern but with generally lower values. Capital expenditures steadily increased from $1,484 million in 2020 to nearly $1,927 million in 2025, pointing to continued investments in property, plant, and equipment. Proceeds from sales of property and business assets were sporadic but showed some recovery in recent years. Net cash used in investing activities remained negative across the period, reflecting ongoing investment outflows.
Financing Activities: Net cash used in financing activities showed large outflows, particularly in 2022 with a peak of $12,016 million, largely driven by repurchases of common stock which saw a substantial peak in 2022 as well. Debt issuance and repayments fluctuated but showed net issuance trends early in the period, with repayments increasing in later years. Cash dividend payments steadily rose, reflecting a commitment to shareholder returns. Proceeds from stock issued under share-based payment plans remained relatively stable.
Cash and Cash Equivalents: Cash and equivalents experienced significant volatility, including a large increase in 2021 followed by significant decreases in 2022 and rebounds in subsequent years. The net increase (decrease) in cash and cash equivalents correlates with the fluctuations seen in operating, investing, and financing activities, resulting in an ending balance that increased somewhat by 2025 but remains below the 2021 peak.

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Lowe’s Cos. Inc. (NYSE:LOW)

Cash Flow Statement