Lowe’s Cos. Inc. (NYSE:LOW)

The analyzed data reveals consistent trends and fluctuations across several key financial ratios over multiple quarters.

Gross profit margin (%)

This margin starts at approximately 31.8% and exhibits a steady increase over time, reaching around 33.49% at its peak. From early 2020 onwards, the margin stabilizes close to 33%, indicating a relatively consistent gross profitability level in recent years.

Operating profit margin (%)

The operating margin shows significant improvement from around 8.75% at the start of the data period to a peak exceeding 12.7% in early 2022. There is a noticeable dip in early 2023 down to about 10.47%, followed by a recovery and subsequent fluctuations ranging from approximately 10.5% to 13.4%, suggesting periods of improved operational efficiency interspersed with moderate volatility.

Net profit margin (%)

The net margin trend mirrors the operating margin to some extent, beginning near 5.9% and rising steadily to just under 9%. Similar to operating margin, net margin displays a decline in early 2023 before rebounding above 8%, reflecting a pattern that suggests resilience in overall profitability despite some temporary setbacks.

Return on equity (ROE) (%)

ROE data is incomplete and highly volatile in the early periods where values are present, showing extreme variability from around 131% to over 1500% in certain quarters. Due to missing values in later periods, no conclusive trend can be established.

Return on assets (ROA) (%)

ROA begins near 10.85% and generally trends upwards, peaking around 18.9% in early 2022. Afterward, there is a decline to nearly 13.5% by mid-2023, followed by some recovery and stabilization in the 15% to 18% range. This pattern suggests improving asset utilization efficiency up to 2022, with some moderate variability thereafter.

Overall, profitability ratios indicate a positive trajectory up to 2022, followed by minor declines and stabilization in subsequent periods. Operational efficiency improved notably but experienced some volatility in recent quarters. The absence of consistent ROE data limits the assessment of shareholder returns, while return on assets confirms generally strong asset productivity with fluctuations in later periods.

The analysis of the financial data over multiple quarters reveals several notable trends in the company’s performance metrics, specifically focusing on gross margin, net sales, and gross profit margin percentage.

Gross Margin

The gross margin exhibits a fluctuating pattern over the periods reviewed. Starting at 5,581 million US dollars in May 2019, it experiences a significant increase reaching a peak of 9,312 million US dollars in July 2021. Post this peak, the gross margin shows a general downward trend with intermittent recoveries, declining to values around 6,000 to 7,000 million US dollars in the most recent quarters of 2024 and early 2025. These fluctuations suggest volatility in cost management or pricing strategies affecting the gross margin over time.

Net Sales

Net sales follow a somewhat similar cyclical pattern to gross margin but at a larger scale of magnitude. Beginning at 17,741 million US dollars in May 2019, net sales rise sharply to 27,570 million US dollars by July 2021, indicating a strong growth period. Afterward, sales demonstrate a downward correction, settling between approximately 18,500 and 24,000 million US dollars in the later periods. This decline post-peak suggests challenges in maintaining the high sales volume achieved mid-cycle, reflecting possible market saturation or competitive influence.

Gross Profit Margin Percentage

The gross profit margin percentage, available from January 2020 onward, reveals a stable and gradually improving ratio. Starting at around 31.8%, it incrementally increases to a range of approximately 33.0% to 33.4% in subsequent quarters. This consistency and slight upward trend in gross profit margin percentage indicate effective control over cost of goods sold relative to net sales, implying improvements in operational efficiency or pricing power despite fluctuations in absolute dollar margins and sales figures.

Overall, the company showed robust growth in gross margin and net sales until mid-2021, followed by a phase of decline or stabilization at lower levels. However, the steady improvement in gross profit margin percentage suggests a positive underlying operational leverage, with cost controls or pricing adjustments sustaining profitability ratios even amid revenue volatility.

The analysis of the quarterly financial data over the examined period reveals distinct patterns and fluctuations in operating income, net sales, and operating profit margin.

Operating Income

Operating income exhibits notable volatility throughout the quarters. Initial values start moderately around 1417 million USD and rise significantly to a peak of 4210 million USD in July 2021. Following this peak, a sharp decline occurs by October 2022, with the figure dropping to 924 million USD. Afterwards, operating income recovers partially, fluctuating between approximately 1600 million and 3500 million USD in the later quarters. This pattern indicates periods of strong profitability interspersed with significant contractions, suggesting sensitivity to operational or market conditions.

Net Sales

Net sales demonstrate an overall upward trend from approximately 17,741 million USD in early 2019 to a peak near 27,576 million USD in mid-2021. After this peak, sales decline steadily, reaching approximately 18,554 million USD by early 2025. The rise in net sales aligns with the growth observed in operating income up to mid-2021. The subsequent decline in sales may reflect market saturation, competitive pressures, or broader economic factors impacting revenue generation.

Operating Profit Margin

The operating profit margin, available from early 2020 onwards, oscillates between approximately 8.75% and 13.38%. Margins improve steadily from around 8.75% in early 2020 to a higher level peaking at 13.38% in mid-2023. Despite fluctuations in absolute operating income and sales, the margin maintains a generally positive trajectory, implying enhanced operational efficiency or cost management over time. However, the margin dips occasionally, corresponding with quarters of reduced operating income, indicating profit pressure during lower income periods.

In summary, the company experienced a growth phase with rising sales and improved profitability up to mid-2021, followed by a period of contraction in both revenue and operating income. Nevertheless, the operating profit margin suggests an underlying improvement in efficiency or cost controls throughout the reporting period, partially offsetting revenue pressures. The fluctuating performance trends warrant close monitoring to assess the impact of external market influences and internal strategic initiatives on future financial outcomes.

Net Earnings

The net earnings show considerable fluctuations throughout the period analyzed. Starting from a value of 1046 million USD in May 2019, the earnings peaked at 2828 million USD in July 2020, reflecting a significant increase. However, there are notable declines following this peak, with earnings dropping to as low as 154 million USD in October 2022. After this low, the earnings demonstrate a recovery pattern with values generally rising again, reaching 2383 million USD by August 2024, though the final readings show some variation. Overall, net earnings exhibit volatility with alternating periods of growth and contraction.

Net Sales

Net sales exhibit a somewhat more stable yet volatile trend. Starting around 17,741 million USD in May 2019, sales increased sharply to 27,302 million USD by July 2020, coinciding with the peak in net earnings. Subsequent quarters reveal fluctuations with sales generally ranging between 18,554 million and 27,570 million USD. There is no clear sustained upward or downward trend, but observed oscillations suggest seasonal or cyclical factors impacting sales. The later periods reflect a slight downward movement with sales figures near 20,000 million USD in early 2025.

Net Profit Margin

Net profit margin data are available starting in early 2020, beginning at approximately 5.93%. An upward trend in profitability is observed through 2021 and mid-2022, where margins increase to around 8.85%. This indicates improved efficiency or cost management during this period despite the volatility in net earnings and sales. Following the peak margins, a decrease occurs toward 6.30% to 6.65% through mid-2023 before rising again above 8% by late 2023 and maintaining relatively stable levels slightly above 8% into early 2025. The margin demonstrates a pattern of recovery and stability after declines, suggesting resilience in profit generation capabilities.

Overall Insights

The data reflect a period of significant volatility in both net earnings and sales, likely influenced by external market conditions and possibly seasonal effects. Despite this, the net profit margin shows an overall improvement trend, especially in the early 2020s, indicating the company managed to sustain or improve profitability despite fluctuating sales volumes and earnings. The pronounced peak in earnings and sales during mid-2020 may be related to specific market events or operational adjustments. Subsequently, volatility in earnings contrasted with more moderate fluctuations in sales suggests variable cost pressures or changes in operational efficiency. Recent periods imply stabilization and a moderate recovery in earnings and profitability margins.

Net Earnings

The net earnings exhibit significant volatility throughout the periods analyzed. There are notable peaks such as $2,828 million in July 2020 and $3,018 million in July 2021. A sharp decline is observed in October 2022 with earnings dropping to $154 million. Following this decline, earnings recover to range between $958 million and $2,673 million in subsequent periods, but no consistent upward or downward trend is evident, indicating fluctuating profitability.

Shareholders’ Equity (Deficit)

The shareholders’ equity shows a pronounced downward trajectory over the periods. Starting from a positive $3,236 million in May 2019, equity declines steadily, turning negative in April 2021 where it reaches -$175 million, and then progressively deteriorates further to a low of -$15,147 million by February 2024. A slight improvement is noted in later periods but the equity remains significantly negative, indicating substantial accumulated deficits or losses impacting the financial position negatively.

Return on Equity (ROE)

ROE is only available in select periods, showing extremely high values particularly in May 2020 (217.09%), July 2020 (266.43%), and April 2021 (1,532.36%). Such elevated ROE figures, in conjunction with declining shareholders’ equity, suggest that the measure is influenced by the low or negative equity base rather than robust profitability, potentially distorting investor return perspectives.

In summary, while net earnings fluctuate with intermittent highs and lows, the persistent decline and sustained negative shareholders’ equity indicate financial strain or extensive losses over the analyzed quarters. The ROE values appear inflated due to deteriorating equity rather than consistent earnings performance. Overall, the data reflects instability in profitability and weakening equity position.

The quarterly financial data reflect several notable trends across net earnings, total assets, and return on assets (ROA) over the period analyzed. These trends provide insight into the company's operational performance and asset utilization efficiency.

Net Earnings

Net earnings show considerable volatility throughout the observed quarters. Early data points depict moderate earnings that fluctuate, with significant peaks such as during July 2020 (2,828 million USD) and July 2021 (3,018 million USD). Following these peaks, there are instances of sharp decreases, including a pronounced dip in October 2022 (154 million USD) and January 2025 (1,695 million USD) relative to preceding quarters. This erratic pattern suggests the influence of variable operational factors or external conditions impacting profitability on a quarterly basis.

Total Assets

Total assets generally demonstrate a modest upward trend across most quarters with some fluctuations. The earliest data point at approximately 43,219 million USD slightly decreases before experiencing growth, reaching above 51,000 million USD around April 2021 and subsequently declining to around 43,102 million USD by January 2025. The asset base thus reflects cyclical behavior but remains within a relatively stable range. The changes in assets do not always correlate directly with the swings observed in net earnings, indicating periods of asset growth or contraction independent of income volatility.

Return on Assets (ROA)

ROA data, available from January 2020 onward, illustrate a generally positive trajectory with some fluctuations. Initial values start near 10.85% and rise significantly to peaks exceeding 18% in multiple quarters such as April 2022 and February 2024. This trend points to improving efficiency in asset utilization, achieving higher returns per unit of asset employed. While ROA remains relatively strong, some declines are observable around late 2022 and early 2023, aligning with periods of reduced net earnings, indicating sensitivity to profitability shifts.

Overall, the patterns suggest the company experienced periods of strengthened profitability and asset efficiency, particularly notable during mid-2020 to mid-2022. However, substantial quarterly variability in net earnings stresses the presence of fluctuating operational factors. Total asset levels remain relatively stable but show slight declines in the later part of the timeline. The rising trend in ROA reinforces enhanced asset productivity despite the net earnings volatility. This combination highlights areas of operational resilience balanced with the need to address earnings consistency.