Lowe’s Cos. Inc. (NYSE:LOW)

Gross Profit Margin

The gross profit margin exhibits a consistent upward trend from 31.8% in January 2020 to 33.32% in January 2025. The margin increased steadily over the years, with a minor plateau between 2023 and 2025, indicating stable cost management relative to revenue generation.

Operating Profit Margin

The operating profit margin shows notable fluctuations over the period. It improved significantly from 8.75% in January 2020 to a peak of 13.38% in February 2024, with some variability in the interim years. The margin slightly declined to 12.51% in January 2025, suggesting occasional variations in operating efficiency or expense control.

Net Profit Margin

The net profit margin follows a similar upward trajectory, rising from 5.93% in January 2020 to 8.31% in January 2025. There is a clear improvement in profitability over time, although some decreases are observed, such as in February 2023, reflecting potential impacts from non-operating factors or tax changes.

Return on Equity (ROE)

Return on equity data is only available for 2020 and 2021, showing an exceptionally high and increasing trend from 217.09% to 406.05%. The absence of data beyond 2021 prevents analysis of longer-term trends, but the initial figures suggest significant shareholder value creation during these years.

Return on Assets (ROA)

Return on assets demonstrates overall improvement with some volatility. It increased from 10.85% in January 2020 to 16.14% in January 2025, peaking at 18.91% in January 2022. The fluctuations between years indicate varying asset utilization efficiency, with general positive momentum in generating returns from asset base.

Net Sales

Net sales exhibited a consistent upward trend from 2020 to 2023, increasing from 72,148 million US dollars in 2020 to 97,059 million US dollars in 2023. However, there was a noticeable decline in the subsequent periods, falling to 86,377 million US dollars in 2024 and further to 83,674 million US dollars in 2025. This suggests a peak in sales in 2023 followed by a contraction in the next two years.

Gross Margin

The gross margin also showed overall growth from 22,943 million US dollars in 2020 to a high of 32,257 million US dollars in 2023, mirroring the increase in net sales. After this peak, gross margin decreased over the following years to 28,844 million US dollars in 2024 and further to 27,877 million US dollars in 2025. The pattern aligns closely with the trend observed in net sales, indicating similar pressures affecting both sales and profitability at the gross level.

Gross Profit Margin Percentage

The gross profit margin percentage demonstrated relative stability and a slight upward trend over the analyzed periods. Starting at 31.8% in 2020, it increased modestly to around 33.3% by 2022 and maintained a level just above 33% through 2025, peaking at 33.39% in 2024. This indicates that despite fluctuations in absolute sales and gross margin figures, the company was able to maintain consistent profitability relative to sales volume.

Summary

The data reflects a period of growth in sales and gross margin from 2020 through 2023, followed by a decline in both metrics in 2024 and 2025. Despite the decrease in absolute figures, the gross profit margin percentage remained relatively steady, suggesting efficient cost management and stable pricing strategies. The decline post-2023 may warrant further investigation to identify underlying causes such as market conditions or competitive pressures.

The financial data reveals several notable trends over the periods analyzed. Net sales demonstrated an overall upward trend from 2020 through 2023, rising from approximately 72.1 billion USD in 2020 to a peak around 97.1 billion USD in 2023. However, there was a decline thereafter, with net sales dropping to approximately 86.4 billion USD in 2024 and further to about 83.7 billion USD in 2025.

Operating income showed growth from 2020 through 2022, increasing from 6.3 billion USD to 12.1 billion USD. In 2023, operating income decreased to approximately 10.2 billion USD, bounced back to around 11.6 billion USD in 2024, before declining again to 10.5 billion USD in 2025.

The operating profit margin exhibited a generally improving trend with some fluctuations. Starting at 8.75% in 2020, it climbed to 12.56% in 2022. Despite a drop to 10.47% in 2023, the margin rebounded significantly to 13.38% in 2024, then slightly decreased to 12.51% in 2025. This suggests a generally improving efficiency in operations relative to sales, although the margin fluctuated in the medium term.

Net Sales Trends

Show a growth phase from 2020 to 2023, followed by a downward trend in the subsequent two years.

Operating Income Trends

Increased steadily until 2022, then experienced volatility with decline in 2023, partial recovery in 2024, and another decrease in 2025.

Operating Profit Margin Analysis

Improved over the years overall, peaking in 2024, indicating enhanced profitability relative to sales despite the drop in net sales in later years.

Overall, while the company experienced strong growth earlier in the period, recent years show some pressure on sales and operating income. However, the operating profit margin indicates effective cost control or operational efficiency improvements, helping to support profitability even as sales decreased.

Over the periods analyzed, net earnings exhibited fluctuations with an overall upward tendency followed by some variation. Beginning at 4,281 million US dollars in early 2020, net earnings increased substantially to 8,442 million by early 2022, indicating strong growth during this phase. However, a decline was observed in early 2023 to 6,437 million, followed by a recovery to 7,726 million in early 2024. The latest figure shows a slight decrease to 6,957 million in early 2025, suggesting some instability or market challenges in that year.

Net sales also demonstrated variability across the years. Starting from 72,148 million US dollars in early 2020, sales rose steadily to a peak of 97,059 million in early 2023. Subsequently, sales declined over the next two years, reaching 86,674 million by early 2025. This downward trend in net sales during the final years contrasts with the earlier growth and may reflect changes in market demand or competitive pressures.

The net profit margin reveals an improving profitability trend overall, with some fluctuations. Initially, the margin was 5.93% in early 2020, improving to 8.77% in early 2022, which corresponds with the period of increasing net earnings and net sales. Although the margin dipped to 6.63% in early 2023, it rebounded to 8.94% in early 2024 and slightly decreased to 8.31% in early 2025. The gains in profit margin, despite declining sales in the later years, suggest effective cost management or pricing strategies enhancing profitability even when revenue fell.

Summary of key trends

Net earnings showed strong growth through early 2022, followed by volatility and a downward adjustment in the most recent year.

Net sales increased up to early 2023, then experienced a decline over the subsequent two years.

Net profit margin generally improved, indicating enhanced profitability and operational efficiency, even during periods of declining sales.

The annual financial data reveals significant fluctuations in both net earnings and shareholders’ equity for the company over the examined periods. Net earnings show a generally positive but volatile trend, while shareholders’ equity demonstrates a marked decline leading to substantial deficits in recent years.

Net Earnings

Net earnings increased substantially from 4,281 million US dollars in 2020 to a peak of 8,442 million US dollars in 2022, indicating strong profitability growth during this period. However, earnings then experienced a decline to 6,437 million dollars in 2023, followed by a rebound to 7,726 million dollars in 2024, and a subsequent decrease to 6,957 million dollars in 2025. This volatility suggests fluctuations in operating performance or market conditions affecting profitability.

Shareholders’ Equity

Shareholders’ equity showed a downward trend across the reported years. The value decreased from 1,972 million dollars in 2020 to 1,437 million dollars in 2021, and then plunged into significant negative territory in 2022 with a deficit of 4,816 million dollars. This negative trend worsened in subsequent years, reaching deficits of -14,254 million in 2023, -15,050 million in 2024, and slightly improving but remaining critically negative at -14,231 million in 2025. The persistent negative equity indicates significant accumulated losses or other financial adjustments negatively impacting the company's net asset position.

Return on Equity (ROE)

ROE values are available only for 2020 and 2021, showing extreme percentages of 217.09% and 406.05%, respectively. These unusually high figures are likely distorted by the very low or discontinued positive shareholders’ equity values, diminishing the meaningfulness of ROE in these years. The absence of ROE data beyond 2021 corresponds with the transition to negative shareholders’ equity, which renders traditional ROE calculation invalid or not applicable.

Overall, the data indicates a company experiencing strong but volatile earnings growth contrasted with a deteriorating equity base that turns deeply negative in recent years. The emerging negative shareholders’ equity presents concerns about the company’s financial stability and capital structure, which may limit future operational flexibility and financial resilience despite continuing positive net earnings.

The financial data reveals distinct trends in profitability, asset management, and return metrics over the six-year period analyzed.

Net Earnings

Net earnings generally exhibit a positive trajectory from 2020 through 2025, with a notable peak in 2022 at $8,442 million. After a decline in 2023 to $6,437 million, earnings recovered in 2024 to $7,726 million but decreased again in 2025 to $6,957 million. This pattern reflects volatility within a broad upward trend, suggesting some cyclical or operational challenges impacting profitability year-over-year.

Total Assets

Total assets increased from $39,471 million in 2020 to a peak of $46,735 million in 2021, followed by a steady decline through 2024, reaching $41,795 million. A slight increase occurred in 2025, bringing total assets to $43,102 million. The reduction in asset base post-2021 may indicate asset optimization, divestitures, or a shift in capital allocation strategy.

Return on Assets (ROA)

The ROA percentage shows an overall improvement, rising sharply from 10.85% in 2020 to a peak of 18.91% in 2022. Although there is a decline in 2023 to 14.73%, it rebounds to 18.49% in 2024 before slightly decreasing to 16.14% in 2025. These fluctuations align closely with the volatility seen in net earnings and indicate periods of enhanced efficiency and profitability relative to the asset base, despite some year-to-year variability.

In summary, the entity demonstrates growth in profitability and improved asset utilization efficiency over the analyzed period, alongside fluctuations that suggest some operational or market challenges impacting performance in certain years.