Lowe’s Cos. Inc. (NYSE:LOW)

The financial data exhibits several key trends over the analyzed periods, revealing insights into operational efficiency, liquidity, leverage, and profitability.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios show an improving trend from 2020 through 2023, rising from approximately 1.83 to a peak near 2.22. This indicates enhanced asset utilization efficiency over these years. However, the ratio declines modestly in the latest years, moving down to around 1.94 by 2025, suggesting a slight reduction in the efficiency of asset use.

Current Ratio

The reported current ratio increases from 1.01 in 2020 to 1.23 in 2024 before slightly retreating to 1.09 in 2025. Adjusted current ratios follow a similar pattern but consistently remain higher than the reported figures, ranging from 1.10 to 1.35 over the period. This reflects an overall improvement in short-term liquidity and the company’s ability to cover current liabilities, despite some fluctuations.

Debt to Equity

Reported and adjusted debt to equity ratios are available only for the years 2020 and 2021, displaying an increase from 9.79 to 15.16 (reported) and from 6.14 to 7.04 (adjusted). These elevated ratios, particularly the reported ones, indicate a significant rise in leverage during this interval, suggesting increased reliance on debt financing relative to equity.

Debt to Capital

There is a noticeable upward trend in reported debt to capital ratios from 0.91 in 2020 to a high of 1.72 in both 2023 and 2024, before a slight dip to 1.67 in 2025. Adjusted figures show similar trends but at lower levels, ranging from 0.86 to 1.46. The values exceeding 1.0 in reported metrics may indicate potential data interpretation nuances; nonetheless, the general pattern points to growing leverage and a greater proportion of capital being sourced from debt.

Financial Leverage

Reported financial leverage figures, available only for 2020 and 2021, reveal a substantial increase from 20.02 to 32.52, paralleled by adjusted leverage rising from 10.15 to 12.46. This suggests an escalated use of debt relative to equity, though only limited period data is provided.

Net Profit Margin

Both reported and adjusted net profit margins display variability but an overall positive trend. Reported margins start at 5.93% in 2020 and peak at 8.94% in 2024, with a slight decrease to 8.31% in 2025. Adjusted margins similarly peak at 9.41% in 2022 and sustain elevated levels thereafter. This indicates generally improving profitability, with some year-to-year fluctuations.

Return on Equity (ROE)

Only 2020 and 2021 data is available for ROE, showing extraordinarily high values in reported figures, increasing from 217.09% to 406.05%, with adjusted values rising from 115.79% to 167.83%. These exceptionally high figures likely reflect the effect of high financial leverage magnifying returns on equity during these years.

Return on Assets (ROA)

Both reported and adjusted ROA demonstrate a marked increase from 2020 through 2022, reaching peaks near 19-20%. Subsequently, there is a decline in 2023 before a partial recovery in later years, ending near 16%. This pattern reveals periods of enhanced asset profitability followed by some moderation.

In summary, the company has improved asset utilization and maintained healthy liquidity levels, though with some recent softening in turnover efficiency. Leverage increased significantly in the early years, contributing to strong ROE but potentially elevated financial risk. Profitability measures such as net profit margin and ROA improved substantially before showing some fluctuation in recent years. These trends suggest a dynamic financial profile characterized by efficient operations, changing leverage strategies, and generally solid profitability with a need to monitor debt levels and asset productivity carefully going forward.

Net Sales

Net sales demonstrated a rising trend from 2020 through 2023, increasing from approximately 72.1 billion USD in 2020 to a peak of 97.1 billion USD in 2023. However, this peak was followed by a decline in the subsequent years, falling to around 86.4 billion USD in 2024 and further to 83.7 billion USD in 2025, indicating a recent reduction in revenue generation.

Total Assets

Total assets grew steadily from around 39.5 billion USD in 2020 to a high of approximately 46.7 billion USD in 2021, followed by a gradual decrease to nearly 43.1 billion USD by 2025. This suggests a contraction or divestment in asset base over the latter years after an initial expansion.

Reported Total Asset Turnover

The reported total asset turnover ratio showed an overall increasing trend from 1.83 in 2020 to a peak of 2.22 in 2023, indicating improved efficiency in utilizing assets to generate sales. Yet, a decline ensued, with the ratio falling to 2.07 in 2024 and further to 1.94 in 2025, reflecting decreasing asset productivity in the most recent periods.

Adjusted Net Sales

Adjusted net sales closely mirror the trend in net sales, rising from about 72.1 billion USD in 2020 to a maximum of 96.8 billion USD in 2023, followed by declines to 86.2 billion USD in 2024 and 83.7 billion USD in 2025. This consistency reinforces the observed revenue contraction after 2023.

Adjusted Total Assets

Adjusted total assets similarly tracked total assets, increasing from approximately 39.3 billion USD in 2020 to a peak near 46.4 billion USD in 2021 and declining afterward to around 42.9 billion USD in 2025. This demonstrates a parallel reduction in adjusted asset base in the latter years.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio reflects a pattern consistent with the reported ratio, rising from 1.84 in 2020 to 2.23 in 2023, indicating enhanced efficiency, then decreasing to 2.07 in 2024 and 1.95 in 2025, signifying a waning in asset utilization effectiveness most recently.

The analysis of the financial data over the six-year period reveals distinct trends in the company's liquidity position as measured by current assets, current liabilities, and both reported and adjusted current ratios.

Current Assets

The current assets rose significantly from $15,318 million in fiscal year 2020 to a peak of $22,326 million in 2021. Following this peak, there was a decline to $20,060 million in 2022, a moderate recovery in 2023 to $21,442 million, then another decrease in 2024 to $19,071 million, before a slight increase to $20,358 million in 2025. Overall, this illustrates volatility with no clear sustained upward or downward trend after 2021.

Current Liabilities

Current liabilities fluctuated, starting at $15,182 million in 2020 and increasing to $18,730 million in 2021. They further grew to $19,668 million in 2022 and slightly decreased to $19,511 million in 2023. A notable drop to $15,568 million was observed in 2024, followed by a rebound to $18,757 million in 2025. This pattern indicates considerable variation in short-term obligations, with a pronounced dip in 2024 before rising again.

Reported Current Ratio

The reported current ratio, indicative of the company's ability to cover short-term liabilities with short-term assets, improved from 1.01 in 2020 to 1.19 in 2021, then declined to near-neutral levels at 1.02 in 2022. It increased to 1.10 in 2023 and peaked at 1.23 in 2024, before decreasing modestly to 1.09 in 2025. The fluctuations suggest intermittent strengthening and weakening in liquidity, with the highest ratio noted in 2024, reflecting the lowest current liabilities that year.

Adjusted Current Liabilities

Adjusted current liabilities follow a pattern similar to reported current liabilities but consistently lower in absolute amount, beginning at $13,963 million in 2020 and peaking at $17,908 million in 2023. After a decline to $14,160 million in 2024, there was an increase to $17,399 million in 2025. This adjustment likely accounts for certain exclusions, resulting in a slightly more favorable short-term debt profile.

Adjusted Current Ratio

The adjusted current ratio exhibits a generally higher value compared to the reported current ratio throughout the period. It increased from 1.10 in 2020 to 1.30 in 2021, dipped to 1.13 in 2022, then rose steadily to a peak of 1.35 in 2024 before decreasing somewhat to 1.17 in 2025. This indicates improved liquidity when liabilities are adjusted, reinforcing the observation of a stronger short-term financial position especially in the mid-period years.

In summary, the data highlights a liquidity position characterized by fluctuating current assets and liabilities over the years. Despite the volatility, the company maintained a generally adequate current ratio both reported and adjusted, with the best liquidity observed in 2024. The adjustments made to current liabilities consistently yield a higher current ratio, implying that certain liabilities excluded from the adjustment may affect the reported liquidity metrics. Overall, the company exhibits moderate financial flexibility with periods of strengthening and weakening in short-term asset coverage.

The financial data reveals several important trends concerning the company's capital structure and financial stability over the measured periods from early 2020 through early 2025.

Total Debt

Total debt has increased consistently over the periods analyzed, rising from $19,306 million in early 2020 to a peak of $35,921 million in early 2024, followed by a slight decline to $35,487 million in early 2025. This trend indicates a growing reliance on debt financing throughout the years, which could imply a strategy focused on leveraging for expansion, investment, or other capital needs.

Shareholders’ Equity (Deficit)

Shareholders’ equity, initially positive at $1,972 million in early 2020, shows a declining trend turning negative by early 2022 (negative $4,816 million) and worsening through subsequent years, reaching a low of negative $15,050 million in early 2024 before a slight improvement to negative $14,231 million in early 2025. The negative equity position suggests the company has experienced losses or liabilities exceeding its assets, indicating potential financial distress or aggressive financial strategies impacting net worth.

Reported Debt to Equity Ratio

The available data from early 2020 and early 2021 shows a significant increase in the reported debt to equity ratio, from 9.79 to 15.16, reflecting a much higher proportion of debt relative to equity. However, later periods lack reported figures, likely due to the onset of negative equity making traditional debt to equity ratios less meaningful or interpretable.

Adjusted Total Debt

Adjusted total debt, which may consider additional liabilities or financial adjustments, shows a steadily increasing trend from $23,750 million in early 2020 to $40,145 million in early 2024, slightly decreasing to $39,678 million by early 2025. This consistent increase confirms the trend of rising indebtedness observed in the reported total debt figures.

Adjusted Shareholders’ Equity (Deficit)

Adjusted shareholders’ equity exhibits a similar pattern to the reported equity but starts positive at $3,869 million in early 2020 and declines substantially into negative territory by early 2022 (negative $1,939 million), deepening further to negative $12,665 million in early 2024, with a slight recovery to negative $11,849 million in early 2025. This adjustment supports the indication of continued erosion in net asset value even when accounting for additional financial considerations.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio increases from 6.14 in early 2020 to 7.04 in early 2021, illustrating growing leverage. Subsequent periods lack reported values, likely owing to the negative equity values rendering these ratios less applicable or reliable as financial indicators.

Overall, the data depicts a company increasingly leveraged with rising debt levels while simultaneously experiencing a significant decline in equity, even reaching substantial deficits. The absence of debt to equity ratios in the latter years corresponds to negative equity values, highlighting potential challenges related to solvency and financial health. The slight improvements in some metrics near the end of the period suggest limited stabilization but remain at concerning levels relative to earlier periods.

The financial data reveals several notable trends regarding the company's debt and capital structure from 2020 through 2025. Both reported and adjusted metrics show a marked increase in debt levels and corresponding debt-to-capital ratios over the analyzed periods.

Total Debt

The total debt exhibited a consistent upward trend from 19,306 million USD in early 2020, increasing steadily each year until it peaked around 35,921 million USD in early 2024. A slight decline is observed in early 2025 to approximately 35,487 million USD, indicating a marginal reduction in outstanding debt following the previous years' growth.

Total Capital

Total capital displayed volatility with an initial increase from 21,278 million USD in 2020 to 23,217 million USD in 2021, followed by a decline to around 19,706 million USD in 2023. It then recovered modestly to roughly 21,256 million USD in early 2025. This fluctuation suggests periods of capital restructuring or changes in equity levels affecting the company's capital base.

Reported Debt to Capital Ratio

Reported debt to capital ratio steadily increased from 0.91 in 2020 to a peak of 1.72 in 2023 and remained relatively stable near that level in 2024 and early 2025. The ratio exceeding 1.0 indicates that debt surpasses capital, highlighting an increase in financial leverage and potential risk exposure over the period.

Adjusted Total Debt and Capital

Adjusted figures for total debt and capital follow a similar pattern to reported values but reflect generally higher amounts. Adjusted total debt rose from 23,750 million USD in 2020 to a high of 40,145 million USD in early 2024, then slightly decreased to 39,678 million USD in 2025. Adjusted total capital showed more variation, initially increasing and then declining to a low in 2023 before a recovery in 2024 and 2025.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio grew from 0.86 in 2020 to 1.46 in 2024, with a slight decrease to 1.43 in early 2025. This ratio trending above 1.0 mirrors the reported figures and underscores a consistent increase in leverage, indicating reliance on debt financing relative to adjusted capital levels.

Overall, the data illustrates a progressive increase in the company's leverage, with both reported and adjusted debt levels rising significantly over the five-year period. Despite some recovery in total capital in the later years, the debt-to-capital ratios remain elevated, suggesting a heightened risk profile related to debt obligations. The slight reductions in debt and leverage ratios in early 2025 may indicate initial efforts towards deleveraging or capital restructuring.

The financial data over the reported periods reveal several notable trends in the company's asset base, equity position, and leverage metrics.

Total Assets

Total assets increased from approximately $39.5 billion in early 2020 to a peak near $46.7 billion by early 2021. Subsequently, assets trended downward each year, reaching about $43.1 billion by early 2025. This pattern suggests a phase of asset growth followed by a moderate contraction or reallocation of resources in later years.

Shareholders’ Equity (Deficit)

Shareholders’ equity displayed a stark decline across the period. Starting at around $2.0 billion in early 2020, this figure diminished substantially to a negative value by early 2022 and continued to deteriorate through 2025, reaching a deficit of approximately -$14.2 billion. This transition into significant negative equity indicates increased liabilities or losses exceeding asset values, posing concerns about financial stability or capital structure.

Reported Financial Leverage

The reported financial leverage ratio increased from 20.02 in early 2020 to 32.52 by early 2021. Data on this measure for subsequent periods are unavailable, but the initial rise reflects a growing reliance on debt or obligations relative to equity during that timeframe.

Adjusted Total Assets

The adjusted total assets closely mirror the pattern observed in total assets, ascending from near $39.3 billion in early 2020 to about $46.4 billion in early 2021, followed by a steady decline to roughly $42.9 billion by early 2025. This adjustment confirms the general trend of asset expansion followed by contraction.

Adjusted Shareholders’ Equity (Deficit)

Adjusted equity figures also show a significant deterioration, starting positively around $3.9 billion in early 2020, moving into negative territory by early 2022, and continuing to decline to approximately -$11.8 billion in early 2025. The adjusted figures, likely correcting for non-recurring items or valuation effects, still underscore a weakening equity position over the term.

Adjusted Financial Leverage

Adjusted financial leverage rose from 10.15 to 12.46 between early 2020 and early 2021. No subsequent data are provided, but this increase mirrors the reported leverage trend and implies heightened financial risk or increased use of debt relative to equity.

Overall, the data reflect an initial growth phase in assets accompanied by an increasing leverage ratio and a deteriorating shareholders’ equity position moving into significant deficits by 2022 onward. This deterioration persists in both reported and adjusted metrics, suggesting underlying challenges in maintaining capital adequacy or managing liabilities effectively during the later years. The absence of leverage data in later periods limits a complete analysis of financial risk dynamics after 2021.

Net Earnings

Net earnings demonstrated a general upward trend from 2020 through 2022, increasing from 4,281 million US dollars in 2020 to a peak of 8,442 million US dollars in 2022. However, this was followed by a decline in 2023 to 6,437 million US dollars, a rebound in 2024 to 7,726 million US dollars, and a subsequent decrease again in 2025 to 6,957 million US dollars.

Net Sales

Net sales increased steadily from 72,148 million US dollars in 2020 to reach a high of 97,059 million US dollars in 2023. This positive trend reversed in 2024 and 2025, with net sales falling to 86,377 million US dollars and then to 83,674 million US dollars, indicating a contraction in sales volume or revenue generation during these years.

Reported Net Profit Margin

The reported net profit margin followed a similar pattern to net earnings, rising from 5.93% in 2020 to a peak of 8.94% in 2024. There was a notable decline in 2023 to 6.63%. The margin decreased slightly to 8.31% in 2025, remaining relatively high compared to the earlier years but below the 2024 peak.

Adjusted Net Earnings

Adjusted net earnings mirrored the trend seen in net earnings, increasing from 4,480 million US dollars in 2020 to a maximum of 9,096 million US dollars in 2022. Following this peak, adjusted earnings dropped significantly in 2023 to 6,355 million US dollars, then increased in 2024 to 7,553 million US dollars, and slightly decreased in 2025 to 6,946 million US dollars.

Adjusted Net Sales

Adjusted net sales showed an overall increase from 72,135 million US dollars in 2020 to a maximum of 96,664 million US dollars in 2022, remaining relatively stable at 96,822 million US dollars in 2023. The series then declined in 2024 and 2025 to 86,206 million US dollars and 83,667 million US dollars respectively, indicating a reduction consistent with the trend observed in net sales.

Adjusted Net Profit Margin

The adjusted net profit margin increased from 6.21% in 2020 to 9.41% in 2022, representing the highest margin in the presented period. It then declined sharply in 2023 to 6.56% before rising again in 2024 to 8.76%. The margin slightly decreased again to 8.3% in 2025, maintaining an overall upward trend despite the fluctuations.

The annual financial data indicates several notable trends and fluctuations over the periods analyzed.

Net Earnings

Net earnings showed a general upward trend from 2020 to 2022, increasing from 4,281 million USD to 8,442 million USD. This was followed by a decline in 2023 to 6,437 million USD, a recovery in 2024 to 7,726 million USD, and a slight decrease again in 2025 to 6,957 million USD. The pattern suggests volatility after a peak in 2022, indicating challenges or potential changes in operational performance or market conditions.

Shareholders’ Equity (Deficit)

A significant downward trend is observed in shareholders’ equity. Initially positive at 1,972 million USD in 2020, it decreased steadily to 1,437 million USD in 2021 and then shifted to negative territory starting 2022 with -4,816 million USD. The deficit expanded further with large negative values in subsequent years: -14,254 million USD in 2023, -15,050 million USD in 2024, and -14,231 million USD in 2025. This indicates a substantial erosion of equity value, reflecting financial distress or significant losses affecting the company’s net asset base.

Reported Return on Equity (ROE)

Reported ROE data is only available for 2020 and 2021, displaying a sharp increase from 217.09% to 406.05%. The absence of data in later years may correlate with the negative shareholders’ equity, rendering this metric less meaningful or undefined.

Adjusted Net Earnings

Adjusted net earnings follow a similar trajectory to reported net earnings, with consistent growth up to 2022 (4,480 million USD in 2020 to 9,096 million USD in 2022). Following this, adjusted net earnings dropped significantly in 2023 to 6,355 million USD, rebounded somewhat in 2024 to 7,553 million USD, and slightly decreased again in 2025 to 6,946 million USD. This pattern supports the observation of operational variability impacting earnings quality in recent years.

Adjusted Shareholders’ Equity (Deficit)

Adjusted shareholders’ equity also shows a decline and transition into negative figures, though less severe than the reported equity. Starting at 3,869 million USD in 2020, it reduced to 3,724 million USD in 2021, then became negative at -1,939 million USD by 2022. The deficit deepened to -11,700 million USD in 2023, -12,665 million USD in 2024, and -11,849 million USD in 2025. This trend suggests that although adjustments mitigate some impact, the company has nonetheless experienced substantial equity erosion after 2021.

Adjusted ROE

Adjusted ROE is reported only for 2020 and 2021, showing an increase from 115.79% to 167.83%. As with reported ROE, data absence in later years may relate to the negative adjusted equity balances, impacting the interpretability of this ratio.

Overall, the company demonstrated strong earnings growth up to 2022, followed by notable declines and volatility in profitability measures thereafter. A concerning trend is the persistent negative shareholders’ equity starting in 2022, indicating financial challenges and possible solvency issues. The lack of ROE data post-2021 further signifies the diminishing relevance of this metric amid negative equity. Adjusted figures, while somewhat less severe, corroborate the general financial stress observed. These patterns suggest the need for careful evaluation of the company’s capital structure and operational strategies going forward.

The financial data reveals distinct patterns and fluctuations across the examined periods, reflecting shifts in profitability, asset management, and overall efficiency.

Net Earnings

The net earnings exhibit a growing trend from 2020 through 2022, increasing from approximately $4.3 billion to $8.4 billion. However, there is a notable decline in 2023, followed by a partial recovery in 2024, and then a decrease again in 2025. This pattern indicates variability in profitability with a peak achieved in early 2022.

Total Assets

Total assets increased significantly between 2020 and 2021, moving from about $39.5 billion to $46.7 billion. Subsequently, total assets show a gradual decline from 2021 through 2024, reaching approximately $41.8 billion, with a slight rebound in 2025. This suggests a contraction in the asset base after the peak in 2021, potentially reflecting divestitures, asset sales, or operational adjustments.

Reported Return on Assets (ROA)

Reported ROA follows a pattern largely consistent with net earnings, rising sharply from around 10.9% in 2020 to almost 18.9% in 2022. Despite a decrease in 2023, ROA recovers strongly in 2024 before decreasing again in 2025. This trend indicates fluctuations in asset efficiency in generating profits, with the highest efficiency noted in 2022.

Adjusted Net Earnings

Adjusted net earnings generally mirror the trend in reported net earnings, demonstrating growth from 2020 to 2022, an abrupt decline in 2023, rebound in 2024, and slight decline in 2025. The adjusted figures, which might account for non-recurring items or other adjustments, consistently remain higher than reported net earnings, suggesting an adjustment for items reducing reported profitability.

Adjusted Total Assets

The adjusted total assets display a similar pattern to total assets, increasing from 2020 to 2021, then gradually declining through 2024, with a modest increase in 2025. Adjusted assets tend to be slightly lower than reported totals, implying some reclassification or exclusion of certain asset components in the adjusted figures.

Adjusted ROA

Adjusted ROA trends closely follow those of reported ROA, rising significantly from 11.4% in 2020 to over 20% in 2022, decreasing sharply in 2023, recovering in 2024, and declining again in 2025. The adjusted version generally reports marginally higher returns, reflecting adjusted earnings relative to adjusted asset values, providing a slightly more favorable view of asset profitability across the periods.

In summary, the company experienced a strong growth phase in net earnings and asset efficiency through 2022, with peak returns on assets during the same period. This was followed by a year of contraction in 2023, partial recovery in 2024, and moderated performance in 2025. Asset levels decreased gradually after 2021, which, coupled with fluctuating earnings, suggests shifts in operational scale or strategy impacting asset utilization and profit generation over time.