Lowe’s Cos. Inc. (NYSE:LOW)

The analysis of the financial ratios over the presented periods reveals several distinct trends in asset utilization and turnover efficiency.

Net Fixed Asset Turnover

The net fixed asset turnover ratio starts at 3.86 in January 2020 and shows a consistent upward trend, peaking around 5.55 in October 2022. After this peak, there is a gradual decline, ending at approximately 4.72 by May 2025. This suggests improving efficiency in the utilization of fixed assets up to late 2022, followed by a modest reduction in asset turnover efficiency afterward.

Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset

This ratio begins at 3.2 in January 2020 and exhibits a similar upward trend, reaching a peak of 4.62 in October 2022. Thereafter, it also declines steadily to 3.88 by May 2025. The inclusion of operating leases slightly lowers the turnover ratios compared to the net fixed assets alone, but the overall trend mirrors the net fixed asset turnover, indicating consistent improvements in asset usage efficiency until late 2022 followed by a decrease.

Total Asset Turnover

The total asset turnover ratio presents more variability. Starting at 1.83 in January 2020, it dips to 1.55 in November 2019, then fluctuates upward, reaching a high of 2.22 in October 2022. Post-October 2022, the ratio trends downward with some fluctuations, ending at 1.83 in May 2025. This reflects improvements in overall asset efficiency culminating in late 2022, followed by a return near earlier levels over the more recent periods.

Equity Turnover

Equity turnover data is only available for a limited set of periods, showing significant volatility. It starts at 36.59 in May 2019, spikes to 212.01 in May 2020, and has other extreme fluctuations (e.g., 62.35 in May 2020, then falling sharply). Missing data in subsequent periods precludes a definitive trend analysis, but the high variability suggests episodic changes in equity utilization or large swings in reported equity levels.

Overall, the asset turnover ratios demonstrate a period of rising efficiency in asset use from early 2020 through late 2022, followed by a gradual decline. The figures incorporating operating leases align closely with those excluding them, indicating consistent trends regardless of lease capitalization. Total asset turnover shows moderate fluctuations but follows a similar pattern of improvement and then decline. Equity turnover exhibits pronounced volatility with limited data, indicating unstable equity utilization over the recorded periods.

Net Sales

Net sales exhibit considerable volatility over the observed periods, with notable peaks and troughs. Starting at approximately $17.7 billion in May 2019, sales rose significantly reaching a peak near $27.5 billion in July 2022. This represents a marked growth phase over three years. Subsequently, a downward adjustment is observed, with sales declining to around $18.5 billion by May 2025.

Several sharp increases and decreases within this timeframe suggest the occurrence of strong seasonal or market-driven factors. For example, the substantial jump from January 2020 (about $16 billion) to July 2020 (over $27 billion) likely reflects external influences driving increased activity. Following July 2022, a clear downward trend is evident, which may indicate market contraction or a cyclical slowdown in demand.

Property, Less Accumulated Depreciation

The value of property, net of accumulated depreciation, remains relatively stable over the entire period, fluctuating narrowly around the $18 billion mark. An initial slight upward trajectory is noticeable from May 2019 through early 2022, peaking near $19 billion. A notable decline occurs around late 2022 to early 2023, where the value drops to approximately $17,275 million, after which it stabilizes in the range of $17.5 billion to $17.7 billion throughout 2023 and 2024 up to mid-2025.

This stability with minor fluctuations suggests controlled capital asset management and moderate depreciation expenses, balanced by new property investments or disposals. The drop in late 2022 could indicate asset sales, write-downs, or reduced capital expenditure during that period.

Net Fixed Asset Turnover

The net fixed asset turnover ratio, which represents the efficiency in generating sales from fixed assets, begins at a ratio of 3.86 in early 2020 and exhibits a generally upward trend until mid-2023, peaking around 5.55. This suggests improving operational efficiency and/or increased sales productivity relative to the fixed asset base over this timeframe.

After reaching this high point, the ratio exhibits a gradual decline toward early 2025, falling to approximately 4.72. This decline may indicate either an increase in fixed assets without proportional sales growth, or a slowdown in sales relative to asset investments. The ratio's fluctuation overall points to cyclical variations in asset utilization efficiency.

Summary of Trends

The data highlights strong sales growth reaching a peak in mid-2022, followed by a downturn toward 2025. Property asset values remain stable with slight reductions in recent years, revealing conservative capital spending or asset disposals. Operational efficiency as measured by net fixed asset turnover improved steadily until mid-2023 before showing signs of moderation.

These observations collectively suggest a period of expansion and increased productivity through 2022, succeeded by stabilization or cautious retrenchment in assets and efficiency. The pattern may reflect broader economic cycles, strategic shifts, or market conditions impacting revenue generation and asset management efficiency.

The quarterly financial data indicates fluctuations and certain evolving trends across net sales, property values, and net fixed asset turnover ratios over the observed periods.

Net Sales (US$ in millions)

Net sales exhibit a cyclical pattern with periods of increase followed by declines. Starting at 17,741 million in May 2019, sales generally trended upward, peaking notably at 27,570 million in July 2021. Subsequently, there were several declines and recoveries, with sales dipping to a low of 18,554 million in May 2025 after earlier peaks.

The data reveals that while sales experience significant short-term volatility, there is no consistent long-term upward or downward trajectory over the entire span. Peaks appear approximately once per year, likely reflecting seasonal or operational factors impacting revenues. Declines following peaks suggest competitive or market pressures, or possible shifts in consumer demand.

Property, less accumulated depreciation (US$ in millions)

The property asset values, inclusive of operating lease and right-of-use assets, remain relatively stable throughout the periods. Beginning at 22,076 million in May 2019, property values fluctuated modestly within a narrow range between approximately 20,787 million and 23,179 million.

There is a slight downward trend starting around October 2022, where values drop below 21,000 million levels and hover near that point through the later periods. This suggests limited capital expenditure or asset disposals, with relatively consistent asset base size supporting operations.

Net Fixed Asset Turnover Ratio (including operating lease, right-of-use asset)

Data on net fixed asset turnover begins from January 2020 and shows a general upward progression through to mid-2022. The ratio increases from roughly 3.2 to a peak of 4.62 in February 2023, indicating improving efficiency in utilizing fixed assets to generate sales during that period.

Following this peak, a gradual decline is observed, with ratios slipping to approximately 3.88 by May 2025. This decline may reflect either declining sales relative to fixed assets or an expanding asset base not fully matched by increased revenues. Overall, efficiency improved noticeably from 2020 through early 2023 before plateauing and slightly decreasing.

In summary, the sales figures demonstrate variability with notable peaks and troughs, while the property asset base remains largely steady with a minor downward adjustment late in the timeline. The fixed asset turnover ratio shows an initial efficiency gain, peaking in early 2023, but gradually declines afterward, signaling changing dynamics in asset utilization efficiency. Taken together, these trends suggest challenges in maintaining consistent sales growth and maximizing asset productivity in the later periods analyzed.

Net Sales

Over the observed period, net sales exhibited a fluctuating pattern with notable peaks and troughs. Initially, sales ranged around 17.7 billion to 21.0 billion US dollars in mid to late 2019, followed by a decline in early 2020 to approximately 16.0 billion. A significant increase occurred mid-2020, reaching above 27.3 billion, likely reflecting strong market demand during that timeframe. Subsequent quarters showed volatility with alternating increases and decreases, but a general downward trend is noticeable from early 2023 onwards, with sales decreasing from about 24.9 billion to a low of approximately 18.5 billion by mid-2025. This suggests challenges in maintaining sales momentum in recent periods.

Total Assets

Total assets displayed a gradual decline from the initial level of around 43.2 billion US dollars in early 2019 to a low near 39.8 billion by late 2019 and early 2020. Following this, a recovery phase is evident, with assets increasing to over 51.7 billion in mid to late 2020. However, the latter quarters show fluctuations and a general downward trajectory from approximately 49.7 billion in early 2022 to around 43.1 billion by mid-2025. The asset base thus experienced growth during 2020, followed by periods of contraction and stabilization at a lower value compared to peak levels.

Total Asset Turnover

The asset turnover ratio began at 1.83 in early 2020 and experienced a slight decrease to 1.55 in mid-2020, coinciding with shifts in sales and asset levels. Subsequently, the ratio showed an increasing trend, peaking at around 2.22 in early 2023, indicating improved efficiency in utilizing assets to generate sales during that period. Post-peak, the ratio declined somewhat but remained relatively stable near 1.83 to 1.94 towards mid-2025. This suggests that despite some fluctuations, overall asset utilization efficiency has been maintained near historical averages in recent quarters.

Summary Insights

The data reveals variability in sales that may be influenced by external market conditions or internal operational changes, with substantial growth observed in 2020 followed by periods of volatility and decline. Asset levels reacted with an initial decrease, a subsequent increase during the strong sales period, then a general reduction and stabilization at lower levels. The asset turnover ratio indicates fluctuating but generally effective use of assets, peaking in early 2023 before normalizing. The interplay between these metrics highlights an adaptive response to changing revenues and asset management strategies over the examined timeframe.

Net Sales

Net sales demonstrate significant volatility over the analyzed periods. Initially, sales fluctuated between approximately $16 billion and $21 billion, before a marked increase occurred between May 2020 and July 2021, with values reaching as high as $27.5 billion. This peak corresponds with a series of quarters following a sharp rise commencing in mid-2020. Post-July 2021, net sales exhibit a general downward trend, with fluctuations but an overall decline toward values below $21 billion by early 2025. The data suggests an initial growth phase, likely influenced by external market conditions, followed by a gradual reduction in sales volume.

Shareholders’ Equity (Deficit)

The shareholders’ equity trend reveals a progressive decline over the majority of the periods. Starting from a positive equity base of $3.2 billion in May 2019, equity steadily decreased with intermittent temporary recoveries but predominantly moved into negative territory by April 2021. The deficit deepened significantly thereafter, peaking at a negative $15.1 billion around early 2024. Subsequent periods show minor improvements but equity remains substantially negative, indicating persistent financial challenges or sizable accumulated losses impacting shareholder value over the analyzed timeframe.

Equity Turnover

Equity turnover data is limited and available only for a specific subset of quarters. The few values reported indicate extremely high turnover ratios, ranging from approximately 18.5 to over 212. A notable spike is observed in April 2021, where equity turnover peaks at 212.01. These elevated ratios suggest either very high sales relative to equity or an exceptionally low equity base during those periods, consistent with the significant negative equity observed concurrently. The absence of continuous data limits comprehensive trend analysis but points to unusual capital efficiency metrics during these intervals.