Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Based on: 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), 10-K (reporting date: 2019-02-01).
Profitability ratio | Description | The company |
---|---|---|
Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Lowe’s Cos. Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Lowe’s Cos. Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Lowe’s Cos. Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Profitability ratio | Description | The company |
---|---|---|
ROA | A profitability ratio calculated as net income divided by total assets. | Lowe’s Cos. Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Gross Profit Margin
Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Gross margin | 28,844) | 32,257) | 32,056) | 29,572) | 22,943) | 22,908) | |
Net sales | 86,377) | 97,059) | 96,250) | 89,597) | 72,148) | 71,309) | |
Profitability Ratio | |||||||
Gross profit margin1 | 33.39% | 33.23% | 33.30% | 33.01% | 31.80% | 32.12% | |
Benchmarks | |||||||
Gross Profit Margin, Competitors2 | |||||||
Amazon.com Inc. | — | 46.98% | 43.81% | 42.03% | 39.57% | 40.99% | |
GameStop Corp. | 24.54% | 23.15% | 22.42% | 24.75% | 29.52% | 27.86% | |
Home Depot Inc. | 33.38% | 33.53% | 33.63% | 33.95% | 34.09% | 34.34% | |
TJX Cos. Inc. | 30.00% | 27.61% | 28.50% | 23.66% | 28.46% | 28.59% |
Based on: 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), 10-K (reporting date: 2019-02-01).
1 2024 Calculation
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 28,844 ÷ 86,377 = 33.39%
2 Click competitor name to see calculations.
Profitability ratio | Description | The company |
---|---|---|
Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Lowe’s Cos. Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Operating Profit Margin
Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Operating income | 11,557) | 10,159) | 12,093) | 9,647) | 6,314) | 4,018) | |
Net sales | 86,377) | 97,059) | 96,250) | 89,597) | 72,148) | 71,309) | |
Profitability Ratio | |||||||
Operating profit margin1 | 13.38% | 10.47% | 12.56% | 10.77% | 8.75% | 5.63% | |
Benchmarks | |||||||
Operating Profit Margin, Competitors2 | |||||||
Amazon.com Inc. | — | 6.41% | 2.38% | 5.30% | 5.93% | 5.18% | |
GameStop Corp. | -0.65% | -5.26% | -6.13% | -4.67% | -6.18% | -8.47% | |
Home Depot Inc. | 14.21% | 15.27% | 15.24% | 13.84% | 14.37% | 14.35% | |
TJX Cos. Inc. | 10.69% | 9.73% | 9.79% | 1.81% | 10.59% | 10.82% | |
Operating Profit Margin, Sector | |||||||
Consumer Discretionary Distribution & Retail | — | 8.54% | 6.34% | 7.29% | 7.96% | 7.41% | |
Operating Profit Margin, Industry | |||||||
Consumer Discretionary | — | 9.06% | 8.41% | 8.73% | 6.40% | 7.48% |
Based on: 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), 10-K (reporting date: 2019-02-01).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 11,557 ÷ 86,377 = 13.38%
2 Click competitor name to see calculations.
Profitability ratio | Description | The company |
---|---|---|
Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Lowe’s Cos. Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Net Profit Margin
Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net earnings | 7,726) | 6,437) | 8,442) | 5,835) | 4,281) | 2,314) | |
Net sales | 86,377) | 97,059) | 96,250) | 89,597) | 72,148) | 71,309) | |
Profitability Ratio | |||||||
Net profit margin1 | 8.94% | 6.63% | 8.77% | 6.51% | 5.93% | 3.25% | |
Benchmarks | |||||||
Net Profit Margin, Competitors2 | |||||||
Amazon.com Inc. | — | 5.29% | -0.53% | 7.10% | 5.53% | 4.13% | |
GameStop Corp. | 0.13% | -5.28% | -6.34% | -4.23% | -7.28% | -8.12% | |
Home Depot Inc. | 9.92% | 10.87% | 10.87% | 9.74% | 10.20% | 10.28% | |
TJX Cos. Inc. | 8.25% | 7.00% | 6.76% | 0.28% | 7.84% | 7.85% | |
Net Profit Margin, Sector | |||||||
Consumer Discretionary Distribution & Retail | — | 6.46% | 3.07% | 7.13% | 6.43% | 5.40% | |
Net Profit Margin, Industry | |||||||
Consumer Discretionary | — | 7.87% | 5.09% | 9.14% | 5.16% | 5.80% |
Based on: 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), 10-K (reporting date: 2019-02-01).
1 2024 Calculation
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 7,726 ÷ 86,377 = 8.94%
2 Click competitor name to see calculations.
Profitability ratio | Description | The company |
---|---|---|
Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Lowe’s Cos. Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Return on Equity (ROE)
Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net earnings | 7,726) | 6,437) | 8,442) | 5,835) | 4,281) | 2,314) | |
Shareholders’ equity (deficit) | (15,050) | (14,254) | (4,816) | 1,437) | 1,972) | 3,644) | |
Profitability Ratio | |||||||
ROE1 | — | — | — | 406.05% | 217.09% | 63.50% | |
Benchmarks | |||||||
ROE, Competitors2 | |||||||
Amazon.com Inc. | — | 15.07% | -1.86% | 24.13% | 22.84% | 18.67% | |
GameStop Corp. | 0.50% | -23.68% | -23.79% | -49.30% | -77.01% | -50.37% | |
Home Depot Inc. | 1,450.48% | 1,095.07% | — | 390.00% | — | — | |
TJX Cos. Inc. | 61.27% | 54.97% | 54.69% | 1.55% | 55.01% | 60.61% | |
ROE, Sector | |||||||
Consumer Discretionary Distribution & Retail | — | 29.03% | 17.03% | 34.80% | 40.13% | 39.04% | |
ROE, Industry | |||||||
Consumer Discretionary | — | 30.42% | 21.42% | 34.25% | 24.98% | 33.88% |
Based on: 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), 10-K (reporting date: 2019-02-01).
1 2024 Calculation
ROE = 100 × Net earnings ÷ Shareholders’ equity (deficit)
= 100 × 7,726 ÷ -15,050 = —
2 Click competitor name to see calculations.
Return on Assets (ROA)
Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net earnings | 7,726) | 6,437) | 8,442) | 5,835) | 4,281) | 2,314) | |
Total assets | 41,795) | 43,708) | 44,640) | 46,735) | 39,471) | 34,508) | |
Profitability Ratio | |||||||
ROA1 | 18.49% | 14.73% | 18.91% | 12.49% | 10.85% | 6.71% | |
Benchmarks | |||||||
ROA, Competitors2 | |||||||
Amazon.com Inc. | — | 5.76% | -0.59% | 7.93% | 6.64% | 5.14% | |
GameStop Corp. | 0.25% | -10.06% | -10.90% | -8.71% | -16.70% | -16.64% | |
Home Depot Inc. | 19.79% | 22.38% | 22.86% | 18.23% | 21.94% | 25.27% | |
TJX Cos. Inc. | 15.04% | 12.34% | 11.53% | 0.29% | 13.55% | 21.36% | |
ROA, Sector | |||||||
Consumer Discretionary Distribution & Retail | — | 8.41% | 4.10% | 9.09% | 9.04% | 8.51% | |
ROA, Industry | |||||||
Consumer Discretionary | — | 7.62% | 4.90% | 8.03% | 4.37% | 5.48% |
Based on: 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), 10-K (reporting date: 2019-02-01).
1 2024 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 7,726 ÷ 41,795 = 18.49%
2 Click competitor name to see calculations.
Profitability ratio | Description | The company |
---|---|---|
ROA | A profitability ratio calculated as net income divided by total assets. | Lowe’s Cos. Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |