Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Lowe’s Cos. Inc. (NYSE:LOW)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Lowe’s Cos. Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Apr 30, 2021 1,532.36% = 13.32% × 115.06
Jan 29, 2021 406.05% = 12.49% × 32.52
Oct 30, 2020 131.77% = 10.55% × 12.49
Jul 31, 2020 131.40% = 11.06% × 11.88
May 1, 2020 266.43% = 9.98% × 26.71
Jan 31, 2020 217.09% = 10.85% × 20.02
Nov 1, 2019 119.93% = 7.41% × 16.18
Aug 2, 2019 95.76% = 6.21% × 15.41
May 3, 2019 73.30% = 5.49% × 13.36
Feb 1, 2019 63.50% = 6.71% × 9.47
Nov 2, 2018 68.43% = 10.05% × 6.81
Aug 3, 2018 68.05% = 10.60% × 6.42
May 4, 2018 66.72% = 10.02% × 6.66
Feb 2, 2018 58.69% = 9.77% × 6.01
Nov 3, 2017 61.93% = 9.67% × 6.41
Aug 4, 2017 55.33% = 8.35% × 6.62
May 5, 2017 50.82% = 7.47% × 6.80
Feb 3, 2017 48.07% = 8.99% × 5.35
Oct 28, 2016 36.99% = 6.90% × 5.36
Jul 29, 2016 40.47% = 7.67% × 5.28
Apr 29, 2016 38.23% = 7.42% × 5.15
Jan 29, 2016 33.26% = 8.14% × 4.08
Oct 30, 2015 — = — × 4.02
Jul 31, 2015 — = — × 3.77
May 1, 2015 — = — × 3.63

Based on: 10-Q (filing date: 2021-05-27), 10-K (filing date: 2021-03-22), 10-Q (filing date: 2020-11-25), 10-Q (filing date: 2020-08-26), 10-Q (filing date: 2020-05-28), 10-K (filing date: 2020-03-23), 10-Q (filing date: 2019-12-04), 10-Q (filing date: 2019-09-03), 10-Q (filing date: 2019-06-03), 10-K (filing date: 2019-04-02), 10-Q (filing date: 2018-12-06), 10-Q (filing date: 2018-09-04), 10-Q (filing date: 2018-06-05), 10-K (filing date: 2018-04-02), 10-Q (filing date: 2017-12-05), 10-Q (filing date: 2017-09-05), 10-Q (filing date: 2017-06-06), 10-K (filing date: 2017-04-04), 10-Q (filing date: 2016-11-29), 10-Q (filing date: 2016-09-02), 10-Q (filing date: 2016-05-31), 10-K (filing date: 2016-03-29), 10-Q (filing date: 2015-12-02), 10-Q (filing date: 2015-09-01), 10-Q (filing date: 2015-06-02).

The primary reason for the increase in return on equity ratio (ROE) over Q1 2022 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Lowe’s Cos. Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Apr 30, 2021 1,532.36% = 7.23% × 1.84 × 115.06
Jan 29, 2021 406.05% = 6.51% × 1.92 × 32.52
Oct 30, 2020 131.77% = 6.29% × 1.68 × 12.49
Jul 31, 2020 131.40% = 7.12% × 1.55 × 11.88
May 1, 2020 266.43% = 6.17% × 1.62 × 26.71
Jan 31, 2020 217.09% = 5.93% × 1.83 × 20.02
Nov 1, 2019 119.93% = 4.11% × 1.80 × 16.18
Aug 2, 2019 95.76% = 3.52% × 1.76 × 15.41
May 3, 2019 73.30% = 3.31% × 1.66 × 13.36
Feb 1, 2019 63.50% = 3.25% × 2.07 × 9.47
Nov 2, 2018 68.43% = 5.19% × 1.94 × 6.81
Aug 3, 2018 68.05% = 5.58% × 1.90 × 6.42
May 4, 2018 66.72% = 5.55% × 1.81 × 6.66
Feb 2, 2018 58.69% = 5.02% × 1.94 × 6.01
Nov 3, 2017 61.93% = 5.16% × 1.87 × 6.41
Aug 4, 2017 55.33% = 4.51% × 1.85 × 6.62
May 5, 2017 50.82% = 4.22% × 1.77 × 6.80
Feb 3, 2017 48.07% = 4.76% × 1.89 × 5.35
Oct 28, 2016 36.99% = 3.91% × 1.77 × 5.36
Jul 29, 2016 40.47% = 4.58% × 1.68 × 5.28
Apr 29, 2016 38.23% = 4.58% × 1.62 × 5.15
Jan 29, 2016 33.26% = 4.31% × 1.89 × 4.08
Oct 30, 2015 — = — × — × 4.02
Jul 31, 2015 — = — × — × 3.77
May 1, 2015 — = — × — × 3.63

Based on: 10-Q (filing date: 2021-05-27), 10-K (filing date: 2021-03-22), 10-Q (filing date: 2020-11-25), 10-Q (filing date: 2020-08-26), 10-Q (filing date: 2020-05-28), 10-K (filing date: 2020-03-23), 10-Q (filing date: 2019-12-04), 10-Q (filing date: 2019-09-03), 10-Q (filing date: 2019-06-03), 10-K (filing date: 2019-04-02), 10-Q (filing date: 2018-12-06), 10-Q (filing date: 2018-09-04), 10-Q (filing date: 2018-06-05), 10-K (filing date: 2018-04-02), 10-Q (filing date: 2017-12-05), 10-Q (filing date: 2017-09-05), 10-Q (filing date: 2017-06-06), 10-K (filing date: 2017-04-04), 10-Q (filing date: 2016-11-29), 10-Q (filing date: 2016-09-02), 10-Q (filing date: 2016-05-31), 10-K (filing date: 2016-03-29), 10-Q (filing date: 2015-12-02), 10-Q (filing date: 2015-09-01), 10-Q (filing date: 2015-06-02).

The primary reason for the increase in return on equity ratio (ROE) over Q1 2022 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Lowe’s Cos. Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Apr 30, 2021 13.32% = 7.23% × 1.84
Jan 29, 2021 12.49% = 6.51% × 1.92
Oct 30, 2020 10.55% = 6.29% × 1.68
Jul 31, 2020 11.06% = 7.12% × 1.55
May 1, 2020 9.98% = 6.17% × 1.62
Jan 31, 2020 10.85% = 5.93% × 1.83
Nov 1, 2019 7.41% = 4.11% × 1.80
Aug 2, 2019 6.21% = 3.52% × 1.76
May 3, 2019 5.49% = 3.31% × 1.66
Feb 1, 2019 6.71% = 3.25% × 2.07
Nov 2, 2018 10.05% = 5.19% × 1.94
Aug 3, 2018 10.60% = 5.58% × 1.90
May 4, 2018 10.02% = 5.55% × 1.81
Feb 2, 2018 9.77% = 5.02% × 1.94
Nov 3, 2017 9.67% = 5.16% × 1.87
Aug 4, 2017 8.35% = 4.51% × 1.85
May 5, 2017 7.47% = 4.22% × 1.77
Feb 3, 2017 8.99% = 4.76% × 1.89
Oct 28, 2016 6.90% = 3.91% × 1.77
Jul 29, 2016 7.67% = 4.58% × 1.68
Apr 29, 2016 7.42% = 4.58% × 1.62
Jan 29, 2016 8.14% = 4.31% × 1.89
Oct 30, 2015 — = — × —
Jul 31, 2015 — = — × —
May 1, 2015 — = — × —

Based on: 10-Q (filing date: 2021-05-27), 10-K (filing date: 2021-03-22), 10-Q (filing date: 2020-11-25), 10-Q (filing date: 2020-08-26), 10-Q (filing date: 2020-05-28), 10-K (filing date: 2020-03-23), 10-Q (filing date: 2019-12-04), 10-Q (filing date: 2019-09-03), 10-Q (filing date: 2019-06-03), 10-K (filing date: 2019-04-02), 10-Q (filing date: 2018-12-06), 10-Q (filing date: 2018-09-04), 10-Q (filing date: 2018-06-05), 10-K (filing date: 2018-04-02), 10-Q (filing date: 2017-12-05), 10-Q (filing date: 2017-09-05), 10-Q (filing date: 2017-06-06), 10-K (filing date: 2017-04-04), 10-Q (filing date: 2016-11-29), 10-Q (filing date: 2016-09-02), 10-Q (filing date: 2016-05-31), 10-K (filing date: 2016-03-29), 10-Q (filing date: 2015-12-02), 10-Q (filing date: 2015-09-01), 10-Q (filing date: 2015-06-02).

The primary reason for the increase in return on assets ratio (ROA) over Q1 2022 is the increase in profitability measured by net profit margin ratio.