Lowe’s Cos. Inc. (NYSE:LOW)

The analysis of the quarterly financial data reveals several noteworthy trends in key financial ratios over the observed periods.

Return on Assets (ROA)

The ROA demonstrates an initially absent data pattern, emerging from January 31, 2020. It starts at 10.85%, then shows moderate fluctuations, with a general increasing trend reaching a peak of 18.91% by April 29, 2022. Following this peak, there is a noticeable decline to 14.23% by February 3, 2023. Subsequently, the ratio stabilizes around the 13.5% to 18% range up to the final period, May 2, 2025. Overall, ROA indicates relatively strong asset profitability with some volatility and a peak before a moderate decline and stabilization.

Financial Leverage

Financial leverage starts at a ratio of 13.36 in May 2019 and generally increases until reaching 26.71 by May 1, 2020. A sharp decline follows with values dropping to 11.88 and 12.49 in the subsequent quarters. An exceptional spike occurs by January 29, 2021, where leverage hits 115.06, representing a significant increase indicating much higher utilization of debt or other liabilities relative to equity. After this extreme, data for leverage are not available, thus limiting further analysis beyond this quarter.

Return on Equity (ROE)

ROE data begins from May 1, 2020, showing extraordinarily high values starting at 217.09%, escalating to a peak of 1532.36% by April 30, 2021. Between these observations, the values fluctuate widely, with a high of 406.05% and lows around 131.4%. Such extreme variation suggests significant changes in net income relative to equity, possibly influenced by the extreme financial leverage observed earlier. Data beyond this period is missing, preventing insight into whether these elevated returns were sustained.

In summary, the financial data reflects a period of rising and then stabilizing operational efficiency as indicated by ROA, coupled with highly volatile leverage and exceptional ROE values during 2020-2021. The dramatic spike in financial leverage corresponds with the extraordinary returns on equity, implying an increased risk profile during that timeframe. Lack of data beyond early 2021 in leverage and ROE limits long-term trend analysis for these metrics.

Net Profit Margin

The net profit margin demonstrates an overall upward trend beginning from the quarter ending January 31, 2020, starting at 5.93%. It rises gradually, reaching peaks above 8.8% during the quarters ending January 29, 2022, and April 29, 2022. Following this, a slight decline occurs through early 2023, with margins hovering around 6.5% to 7%. However, towards the last observed periods, the margin recovers again to fluctuate near 8.2% to 8.9%. This pattern suggests periods of strengthening profitability with some short-term contractions.

Asset Turnover

Asset turnover ratios begin at 1.83 in May 2020, dip to a low point near 1.55–1.62 by late 2020, then increase steadily to peak values around 2.16 in April 2022. Subsequently, the ratio stabilizes between approximately 1.88 and 2.22, with minor fluctuations across the remaining periods. The data indicates moderate improvements in the efficiency of asset utilization, with sustained levels suggesting maintained operational activity.

Financial Leverage

Financial leverage ratios display significant variability, with an initial increase from 13.36 to a peak over 115.0 by early 2021, followed by missing values afterward. The sharp increase implies a heavy reliance on debt or equity amplification during that timeframe, though the absence of subsequent data prevents analysis of later trends. The early surge points to potentially elevated financial risk in the periods observed.

Return on Equity (ROE)

Return on equity values show extremely high volatility, with ROE spiking from approximately 131% to over 1500% between May 2020 and April 2021. Such extraordinary figures suggest significant impacts from financial leverage or exceptional items during this period. After this peak, data is missing, thereby limiting the ability to evaluate sustained performance. The extreme variation calls for further investigation beyond the quantitative data presented to understand underlying factors.

Net Profit Margin

The net profit margin exhibits a generally positive trend from early 2020 through mid-2022, increasing from approximately 5.93% to a peak near 8.85%. After this peak, the margin declines moderately to around 6.48% by early 2023. Subsequently, there is a recovery towards the 8.0% range by mid-2024 and it remains relatively stable through early 2025. This pattern suggests periods of improved profitability followed by short-term contractions and later stabilization in profit margins.

Asset Turnover

The asset turnover ratio shows variability but maintains an overall upward tendency through the period analyzed. Starting near 1.83 in early 2020, the ratio decreases somewhat in mid-2020 before rebounding and reaching a maximum above 2.2 around early 2023. After this peak, the ratio declines gradually to roughly 1.83 by early 2025. This indicates fluctuations in the efficiency of asset utilization to generate sales, with a peak in operational efficiency followed by a slight retracement to initial levels.

Return on Assets (ROA)

ROA reveals a strong upward trajectory from the onset of the period, rising from just under 11% in early 2020 to nearly 19% by early 2022, indicating enhanced overall profitability and effective use of assets. Following this high point, ROA decreases moderately to around 13.5% by early 2023. The ratio then increases again, peaking around 18.5% in mid-2024 before tapering off to approximately 15% by early 2025. This pattern reflects cycles of improving and slightly diminishing asset profitability over time, with overall gains sustained above the initial baseline.