Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Lowe’s Cos. Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Federal	1,764)	1,955)	2,226)	2,069)	1,578)	935)
State	424)	489)	561)	557)	425)	268)
Current	2,188)	2,444)	2,787)	2,626)	2,003)	1,203)
Federal	—)	3)	(179)	129)	(73)	121)
State	8)	2)	(9)	11)	(26)	18)
Deferred	8)	5)	(188)	140)	(99)	139)
Income tax provision	2,196)	2,449)	2,599)	2,766)	1,904)	1,342)

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).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Lowe’s Cos. Inc. current decreased from 2023 to 2024 and from 2024 to 2025.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Lowe’s Cos. Inc. deferred increased from 2023 to 2024 and from 2024 to 2025.
Income tax provision	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Lowe’s Cos. Inc. income tax provision decreased from 2023 to 2024 and from 2024 to 2025.

Lowe’s Cos. Inc., effective income tax rate (EITR) reconciliation

	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
State income taxes, net of federal tax benefit	3.70%	3.80%	4.80%	4.00%	4.00%	4.10%
Valuation allowance	-0.40%	0.70%	5.50%	0.00%	0.00%	1.30%
Expiration of capital loss carryforward	0.10%	0.00%	2.50%	0.00%	0.00%	0.00%
Loss on divestiture of Canadian retail business	0.00%	-1.00%	-4.10%	0.00%	0.00%	0.00%
Mexico impairment	0.00%	0.00%	0.00%	0.00%	0.00%	-1.40%
Other, net	-0.40%	-0.40%	-0.90%	-0.30%	-0.40%	-1.10%
Effective tax rate	24.00%	24.10%	28.80%	24.70%	24.60%	23.90%

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).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Lowe’s Cos. Inc. effective tax rate decreased from 2023 to 2024 and from 2024 to 2025.

Lowe’s Cos. Inc., components of deferred tax assets and liabilities

US$ in millions

	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Self-insurance	233)	261)	267)	287)	284)	260)
Share-based payment expense	46)	49)	64)	53)	48)	30)
Operating lease liabilities	1,143)	1,159)	1,126)	1,386)	1,328)	1,377)
Capital loss carryforwards	645)	695)	722)	225)	225)	225)
Net operating losses	261)	332)	409)	251)	274)	273)
Other, net	390)	446)	363)	242)	337)	131)
Deferred tax assets	2,718)	2,942)	2,951)	2,444)	2,496)	2,296)
Valuation allowance	(1,003)	(1,133)	(1,136)	(590)	(601)	(561)
Net deferred tax assets	1,715)	1,809)	1,815)	1,854)	1,895)	1,735)
Operating lease right-of-use assets	(1,012)	(1,017)	(974)	(1,378)	(1,146)	(1,198)
Property	(315)	(389)	(438)	(267)	(382)	(293)
Other, net	(144)	(155)	(153)	(45)	(27)	(28)
Deferred tax liabilities	(1,471)	(1,561)	(1,565)	(1,690)	(1,555)	(1,519)
Net deferred tax assets (liabilities)	244)	248)	250)	164)	340)	216)

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).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Lowe’s Cos. Inc. deferred tax assets decreased from 2023 to 2024 and from 2024 to 2025.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Lowe’s Cos. Inc. net deferred tax assets decreased from 2023 to 2024 and from 2024 to 2025.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Lowe’s Cos. Inc. net deferred tax assets (liabilities) decreased from 2023 to 2024 and from 2024 to 2025.

Lowe’s Cos. Inc., deferred tax assets and liabilities, classification

US$ in millions

		Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
	Deferred tax assets	244)	248)	250)	164)	340)	216)

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).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Lowe’s Cos. Inc. deferred tax assets decreased from 2023 to 2024 and from 2024 to 2025.

Lowe’s Cos. Inc., adjustments to financial statements

US$ in millions

	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Adjustment to Total Assets
Total assets (as reported)	43,102)	41,795)	43,708)	44,640)	46,735)	39,471)
Less: Noncurrent deferred tax assets, net	244)	248)	250)	164)	340)	216)
Total assets (adjusted)	42,858)	41,547)	43,458)	44,476)	46,395)	39,255)
Adjustment to Shareholders’ Equity (deficit)
Shareholders’ equity (deficit) (as reported)	(14,231)	(15,050)	(14,254)	(4,816)	1,437)	1,972)
Less: Net deferred tax assets (liabilities)	244)	248)	250)	164)	340)	216)
Shareholders’ equity (deficit) (adjusted)	(14,475)	(15,298)	(14,504)	(4,980)	1,097)	1,756)
Adjustment to Net Earnings
Net earnings (as reported)	6,957)	7,726)	6,437)	8,442)	5,835)	4,281)
Add: Deferred income tax expense (benefit)	8)	5)	(188)	140)	(99)	139)
Net earnings (adjusted)	6,965)	7,731)	6,249)	8,582)	5,736)	4,420)

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).

Lowe’s Cos. Inc., Financial Data: Reported vs. Adjusted

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Lowe’s Cos. Inc., adjusted financial ratios

	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Net Profit Margin
Reported net profit margin	8.31%	8.94%	6.63%	8.77%	6.51%	5.93%
Adjusted net profit margin	8.32%	8.95%	6.44%	8.92%	6.40%	6.13%
Total Asset Turnover
Reported total asset turnover	1.94	2.07	2.22	2.16	1.92	1.83
Adjusted total asset turnover	1.95	2.08	2.23	2.16	1.93	1.84
Financial Leverage
Reported financial leverage	—	—	—	—	32.52	20.02
Adjusted financial leverage	—	—	—	—	42.29	22.35
Return on Equity (ROE)
Reported ROE	—	—	—	—	406.05%	217.09%
Adjusted ROE	—	—	—	—	522.88%	251.71%
Return on Assets (ROA)
Reported ROA	16.14%	18.49%	14.73%	18.91%	12.49%	10.85%
Adjusted ROA	16.25%	18.61%	14.38%	19.30%	12.36%	11.26%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Lowe’s Cos. Inc. adjusted net profit margin ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Lowe’s Cos. Inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Lowe’s Cos. Inc. adjusted ROA improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level.

Lowe’s Cos. Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings	6,957)	7,726)	6,437)	8,442)	5,835)	4,281)
Net sales	83,674)	86,377)	97,059)	96,250)	89,597)	72,148)
Profitability Ratio
Net profit margin¹	8.31%	8.94%	6.63%	8.77%	6.51%	5.93%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	6,965)	7,731)	6,249)	8,582)	5,736)	4,420)
Net sales	83,674)	86,377)	97,059)	96,250)	89,597)	72,148)
Profitability Ratio
Adjusted net profit margin²	8.32%	8.95%	6.44%	8.92%	6.40%	6.13%

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).

2025 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 6,957 ÷ 83,674 = 8.31%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 6,965 ÷ 83,674 = 8.32%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Lowe’s Cos. Inc. adjusted net profit margin ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.

	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales	83,674)	86,377)	97,059)	96,250)	89,597)	72,148)
Total assets	43,102)	41,795)	43,708)	44,640)	46,735)	39,471)
Activity Ratio
Total asset turnover¹	1.94	2.07	2.22	2.16	1.92	1.83
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	83,674)	86,377)	97,059)	96,250)	89,597)	72,148)
Adjusted total assets	42,858)	41,547)	43,458)	44,476)	46,395)	39,255)
Activity Ratio
Adjusted total asset turnover²	1.95	2.08	2.23	2.16	1.93	1.84

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).

2025 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 83,674 ÷ 43,102 = 1.94

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 83,674 ÷ 42,858 = 1.95

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Lowe’s Cos. Inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025.

	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	43,102)	41,795)	43,708)	44,640)	46,735)	39,471)
Shareholders’ equity (deficit)	(14,231)	(15,050)	(14,254)	(4,816)	1,437)	1,972)
Solvency Ratio
Financial leverage¹	—	—	—	—	32.52	20.02
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	42,858)	41,547)	43,458)	44,476)	46,395)	39,255)
Adjusted shareholders’ equity (deficit)	(14,475)	(15,298)	(14,504)	(4,980)	1,097)	1,756)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	42.29	22.35

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).

2025 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 43,102 ÷ -14,231 = —

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 42,858 ÷ -14,475 = —

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	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings	6,957)	7,726)	6,437)	8,442)	5,835)	4,281)
Shareholders’ equity (deficit)	(14,231)	(15,050)	(14,254)	(4,816)	1,437)	1,972)
Profitability Ratio
ROE¹	—	—	—	—	406.05%	217.09%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	6,965)	7,731)	6,249)	8,582)	5,736)	4,420)
Adjusted shareholders’ equity (deficit)	(14,475)	(15,298)	(14,504)	(4,980)	1,097)	1,756)
Profitability Ratio
Adjusted ROE²	—	—	—	—	522.88%	251.71%

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).

2025 Calculations

¹ ROE = 100 × Net earnings ÷ Shareholders’ equity (deficit)
= 100 × 6,957 ÷ -14,231 = —

² Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted shareholders’ equity (deficit)
= 100 × 6,965 ÷ -14,475 = —

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	Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings	6,957)	7,726)	6,437)	8,442)	5,835)	4,281)
Total assets	43,102)	41,795)	43,708)	44,640)	46,735)	39,471)
Profitability Ratio
ROA¹	16.14%	18.49%	14.73%	18.91%	12.49%	10.85%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	6,965)	7,731)	6,249)	8,582)	5,736)	4,420)
Adjusted total assets	42,858)	41,547)	43,458)	44,476)	46,395)	39,255)
Profitability Ratio
Adjusted ROA²	16.25%	18.61%	14.38%	19.30%	12.36%	11.26%

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).

2025 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 6,957 ÷ 43,102 = 16.14%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 6,965 ÷ 42,858 = 16.25%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Lowe’s Cos. Inc. adjusted ROA improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level.

Lowe’s Cos. Inc. (NYSE:LOW)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Lowe’s Cos. Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Lowe’s Cos. Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)