Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Lowe’s Cos. Inc., long-term (investment) activity ratios
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 Fixed Asset Turnover
- The net fixed asset turnover ratio shows a generally upward trend from 3.86 in early 2020 to a peak of 5.53 in early 2023, indicating increasing efficiency in using fixed assets to generate sales over this period. However, after 2023, the ratio declines to 4.89 in 2024 and further to 4.74 in early 2025, suggesting a slight reduction in asset utilization efficiency in the most recent years.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- This metric follows a similar pattern to the net fixed asset turnover, increasing steadily from 3.2 in 2020 to 4.6 in 2023. Thereafter, it decreases to 4.04 in 2024 and 3.91 in 2025. The inclusion of operating lease and right-of-use assets results in slightly lower turnover ratios compared to net fixed asset turnover alone, but both measures exhibit a comparable trend of growth followed by a modest decline.
- Total Asset Turnover
- The total asset turnover ratio exhibits a steady increase from 1.83 in 2020 to 2.22 in early 2023, reflecting improved overall asset efficiency in generating revenue. Following the peak in 2023, there is a gradual decline to 2.07 in 2024 and 1.94 in 2025, indicating a slight reduction in total asset utilization in the most recent periods.
- Equity Turnover
- Equity turnover rises sharply from 36.59 in 2020 to 62.35 in 2021. Data beyond 2021 is not available, restricting trend analysis over the full period.
Net Fixed Asset Turnover
Lowe’s Cos. Inc., net fixed asset turnover calculation, comparison to benchmarks
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | |||||||
| Property, less accumulated depreciation | |||||||
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | |||||||
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| TJX Cos. Inc. | |||||||
| Net Fixed Asset Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Discretionary | |||||||
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).
1 2025 Calculation
Net fixed asset turnover = Net sales ÷ Property, less accumulated depreciation
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a steady increase from 2020 through 2023, rising from $72,148 million in 2020 to a peak of $97,059 million in 2023. However, sales declined in the subsequent years, dropping to $86,377 million in 2024 and further to $83,674 million in 2025. This pattern suggests a growth phase followed by a contraction in revenue.
- Property, Less Accumulated Depreciation
- The net property value remained relatively stable over the analysis period. It increased slightly from $18,669 million in 2020 to around $19,155 million in 2021 but then showed a gradual decrease, reaching $17,649 million by 2025. This stability with slight depreciation indicates limited investment in fixed assets or gradual asset aging.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio improved significantly from 3.86 in 2020 to a peak of 5.53 in 2023, indicating increased efficiency in using fixed assets to generate sales during the growth phase. However, the ratio decreased an important margin afterward, falling to 4.89 in 2024 and 4.74 in 2025. This decline corresponds with the reduced net sales and suggests a drop in asset utilization efficiency in recent periods.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Lowe’s Cos. Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | |||||||
| Property, less accumulated depreciation | |||||||
| Operating lease right-of-use assets | |||||||
| Property, less accumulated depreciation (including operating lease, right-of-use asset) | |||||||
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | |||||||
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| TJX Cos. Inc. | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Discretionary | |||||||
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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, less accumulated depreciation (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales increased significantly from 72,148 million USD in early 2020 to a peak of 97,059 million USD in early 2023. After this peak, there was a notable decline over the next two years, falling to 86,377 million USD in early 2024 and further to 83,674 million USD in early 2025. This trend suggests a strong growth phase followed by a period of contraction or reduced revenue generation.
- Property, Less Accumulated Depreciation (Including Operating Lease, Right-of-Use Asset)
- The value of property assets remained relatively stable over the six-year period, starting at 22,560 million USD in early 2020 and fluctuating slightly to end at 21,387 million USD in early 2025. This stability, with minor decreases and increases, indicates consistent capital investment or asset management without significant expansion or divestment.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio demonstrated an overall upward trend from 3.2 in early 2020 to a high of 4.6 in early 2023, reflecting improved efficiency in utilizing fixed assets to generate sales. However, following this peak, the ratio declined to 4.04 in early 2024 and further to 3.91 in early 2025, suggesting a decrease in asset utilization efficiency in the latest two years.
Total Asset Turnover
Lowe’s Cos. Inc., total asset turnover calculation, comparison to benchmarks
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | |||||||
| Total assets | |||||||
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | |||||||
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| TJX Cos. Inc. | |||||||
| Total Asset Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Total Asset Turnover, Industry | |||||||
| Consumer Discretionary | |||||||
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).
1 2025 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited an overall upward trend from 2020 to 2023, increasing from 72,148 million USD in 2020 to a peak of 97,059 million USD in 2023. However, this growth reversed in the subsequent years, with net sales declining to 86,377 million USD in 2024 and further to 83,674 million USD in 2025. This indicates a contraction in revenue after strong growth periods.
- Total Assets
- Total assets generally increased from 39,471 million USD in 2020 to a peak of 46,735 million USD in 2021. Afterward, total assets decreased steadily over the following years, reaching 41,702 million USD in 2024, before showing a slight uptick to 43,102 million USD in 2025. This suggests a period of asset consolidation or disposal following the initial growth, with a modest recovery in the latest period.
- Total Asset Turnover
- The total asset turnover ratio demonstrated an improvement from 1.83 in 2020 to a peak of 2.22 in 2023, indicating enhanced efficiency in utilizing assets to generate sales. Following this peak, the ratio declined to 2.07 in 2024 and further to 1.94 in 2025. Despite these decreases, the turnover remains above the levels observed in 2020 and 2021, reflecting relatively strong asset utilization compared to the earlier years.
Equity Turnover
Lowe’s Cos. Inc., equity turnover calculation, comparison to benchmarks
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | |||||||
| Shareholders’ equity (deficit) | |||||||
| Long-term Activity Ratio | |||||||
| Equity turnover1 | |||||||
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| TJX Cos. Inc. | |||||||
| Equity Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Equity Turnover, Industry | |||||||
| Consumer Discretionary | |||||||
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).
1 2025 Calculation
Equity turnover = Net sales ÷ Shareholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
- Net Sales Trend
- Net sales exhibited an upward trajectory from 72,148 million USD in January 2020 to a peak of 97,059 million USD in February 2023. Subsequently, a decline is observable, with net sales decreasing to 86,377 million USD in February 2024 and further to 83,674 million USD by January 2025.
- Shareholders’ Equity (Deficit) Trend
- Shareholders’ equity declined sharply over the observed periods. Starting at 1,972 million USD in January 2020, it decreased to 1,437 million USD in January 2021 before turning negative at -4,816 million USD in January 2022. This deficit intensified in subsequent periods, reaching -14,254 million USD in February 2023, -15,050 million USD in February 2024, and slightly improving to -14,231 million USD by January 2025. The consistent negative equity indicates an erosion of net assets and could signify financial distress or significant liabilities.
- Equity Turnover Analysis
- Equity turnover ratio increased considerably from 36.59 in January 2020 to 62.35 in January 2021. Data for subsequent years is missing, limiting trend analysis beyond this point. The high equity turnover ratio in 2021 suggests strong sales generation relative to shareholders’ equity; however, given the subsequent equity decline, the sustainability of this ratio is questionable.