Stock Analysis on Net
Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Lowe’s Cos. Inc., adjusted financial ratios

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Activity Ratio
Total Asset Turnover
Reported 2.07 2.22 2.16 1.92 1.83 2.07
Adjusted 2.07 2.23 2.17 1.94 1.84 1.88
Liquidity Ratio
Current Ratio
Reported 1.23 1.10 1.02 1.19 1.01 0.98
Adjusted 1.35 1.20 1.13 1.30 1.10 1.08
Solvency Ratios
Debt to Equity
Reported — — — 15.16 9.79 4.45
Adjusted — — — 7.04 6.14 3.63
Debt to Capital
Reported 1.72 1.72 1.24 0.94 0.91 0.82
Adjusted 1.46 1.44 1.07 0.88 0.86 0.78
Financial Leverage
Reported — — — 32.52 20.02 9.47
Adjusted — — — 12.46 10.15 6.92
Profitability Ratios
Net Profit Margin
Reported 8.94% 6.63% 8.77% 6.51% 5.93% 3.25%
Adjusted 8.76% 6.56% 9.41% 6.94% 6.21% 2.64%
Return on Equity (ROE)
Reported — — — 406.05% 217.09% 63.50%
Adjusted — — — 167.83% 115.79% 34.37%
Return on Assets (ROA)
Reported 18.49% 14.73% 18.91% 12.49% 10.85% 6.71%
Adjusted 18.18% 14.62% 20.45% 13.47% 11.41% 4.97%

Based on: 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), 10-K (reporting date: 2019-02-01).

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 improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Lowe’s Cos. Inc. adjusted current ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Lowe’s Cos. Inc. adjusted debt-to-capital ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Lowe’s Cos. Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Lowe’s Cos. Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

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

Adjusted Total Asset Turnover

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Reported
Selected Financial Data (US$ in millions)
Net sales 86,377 97,059 96,250 89,597 72,148 71,309
Total assets 41,795 43,708 44,640 46,735 39,471 34,508
Activity Ratio
Total asset turnover1 2.07 2.22 2.16 1.92 1.83 2.07
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net sales2 86,206 96,822 96,664 90,111 72,135 71,254
Adjusted total assets3 41,547 43,458 44,476 46,395 39,255 37,877
Activity Ratio
Adjusted total asset turnover4 2.07 2.23 2.17 1.94 1.84 1.88

Based on: 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), 10-K (reporting date: 2019-02-01).

1 2024 Calculation
Total asset turnover = Net sales ÷ Total assets
= 86,377 ÷ 41,795 = 2.07

2 Adjusted net sales. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 86,206 ÷ 41,547 = 2.07

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 improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Current Ratio

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 19,071 21,442 20,060 22,326 15,318 14,228
Current liabilities 15,568 19,511 19,668 18,730 15,182 14,497
Liquidity Ratio
Current ratio1 1.23 1.10 1.02 1.19 1.01 0.98
Adjusted
Selected Financial Data (US$ in millions)
Current assets 19,071 21,442 20,060 22,326 15,318 14,228
Adjusted current liabilities2 14,160 17,908 17,754 17,122 13,963 13,198
Liquidity Ratio
Adjusted current ratio3 1.35 1.20 1.13 1.30 1.10 1.08

Based on: 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), 10-K (reporting date: 2019-02-01).

1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 19,071 ÷ 15,568 = 1.23

2 Adjusted current liabilities. See details »

3 2024 Calculation
Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 19,071 ÷ 14,160 = 1.35

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Lowe’s Cos. Inc. adjusted current ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Debt to Equity

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 35,921 33,960 24,727 21,780 19,306 16,223
Shareholders’ equity (deficit) (15,050) (14,254) (4,816) 1,437 1,972 3,644
Solvency Ratio
Debt to equity1 — — — 15.16 9.79 4.45
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 40,145 37,994 29,384 26,211 23,750 19,886
Adjusted shareholders’ equity (deficit)3 (12,665) (11,700) (1,939) 3,724 3,869 5,476
Solvency Ratio
Adjusted debt to equity4 — — — 7.04 6.14 3.63

Based on: 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), 10-K (reporting date: 2019-02-01).

1 2024 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 35,921 ÷ -15,050 = —

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity (deficit). See details »

4 2024 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity (deficit)
= 40,145 ÷ -12,665 = —

Adjusted Debt to Capital

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 35,921 33,960 24,727 21,780 19,306 16,223
Total capital 20,871 19,706 19,911 23,217 21,278 19,867
Solvency Ratio
Debt to capital1 1.72 1.72 1.24 0.94 0.91 0.82
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 40,145 37,994 29,384 26,211 23,750 19,886
Adjusted total capital3 27,480 26,294 27,445 29,935 27,619 25,362
Solvency Ratio
Adjusted debt to capital4 1.46 1.44 1.07 0.88 0.86 0.78

Based on: 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), 10-K (reporting date: 2019-02-01).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 35,921 ÷ 20,871 = 1.72

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2024 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 40,145 ÷ 27,480 = 1.46

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Lowe’s Cos. Inc. adjusted debt-to-capital ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 41,795 43,708 44,640 46,735 39,471 34,508
Shareholders’ equity (deficit) (15,050) (14,254) (4,816) 1,437 1,972 3,644
Solvency Ratio
Financial leverage1 — — — 32.52 20.02 9.47
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 41,547 43,458 44,476 46,395 39,255 37,877
Adjusted shareholders’ equity (deficit)3 (12,665) (11,700) (1,939) 3,724 3,869 5,476
Solvency Ratio
Adjusted financial leverage4 — — — 12.46 10.15 6.92

Based on: 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), 10-K (reporting date: 2019-02-01).

1 2024 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 41,795 ÷ -15,050 = —

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity (deficit). See details »

4 2024 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 41,547 ÷ -12,665 = —

Adjusted Net Profit Margin

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 7,726 6,437 8,442 5,835 4,281 2,314
Net sales 86,377 97,059 96,250 89,597 72,148 71,309
Profitability Ratio
Net profit margin1 8.94% 6.63% 8.77% 6.51% 5.93% 3.25%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 7,553 6,355 9,096 6,250 4,480 1,882
Adjusted net sales3 86,206 96,822 96,664 90,111 72,135 71,254
Profitability Ratio
Adjusted net profit margin4 8.76% 6.56% 9.41% 6.94% 6.21% 2.64%

Based on: 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), 10-K (reporting date: 2019-02-01).

1 2024 Calculation
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 7,726 ÷ 86,377 = 8.94%

2 Adjusted net earnings. See details »

3 Adjusted net sales. See details »

4 2024 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Adjusted net sales
= 100 × 7,553 ÷ 86,206 = 8.76%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Lowe’s Cos. Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 7,726 6,437 8,442 5,835 4,281 2,314
Shareholders’ equity (deficit) (15,050) (14,254) (4,816) 1,437 1,972 3,644
Profitability Ratio
ROE1 — — — 406.05% 217.09% 63.50%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 7,553 6,355 9,096 6,250 4,480 1,882
Adjusted shareholders’ equity (deficit)3 (12,665) (11,700) (1,939) 3,724 3,869 5,476
Profitability Ratio
Adjusted ROE4 — — — 167.83% 115.79% 34.37%

Based on: 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), 10-K (reporting date: 2019-02-01).

1 2024 Calculation
ROE = 100 × Net earnings ÷ Shareholders’ equity (deficit)
= 100 × 7,726 ÷ -15,050 = —

2 Adjusted net earnings. See details »

3 Adjusted shareholders’ equity (deficit). See details »

4 2024 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted shareholders’ equity (deficit)
= 100 × 7,553 ÷ -12,665 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 7,726 6,437 8,442 5,835 4,281 2,314
Total assets 41,795 43,708 44,640 46,735 39,471 34,508
Profitability Ratio
ROA1 18.49% 14.73% 18.91% 12.49% 10.85% 6.71%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 7,553 6,355 9,096 6,250 4,480 1,882
Adjusted total assets3 41,547 43,458 44,476 46,395 39,255 37,877
Profitability Ratio
Adjusted ROA4 18.18% 14.62% 20.45% 13.47% 11.41% 4.97%

Based on: 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), 10-K (reporting date: 2019-02-01).

1 2024 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 7,726 ÷ 41,795 = 18.49%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 7,553 ÷ 41,547 = 18.18%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Lowe’s Cos. Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.