Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Lowe’s Cos. Inc., short-term (operating) activity ratios

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Turnover Ratios
Inventory turnover 3.21 3.41 3.50 3.65 3.71 3.73
Receivables turnover
Payables turnover 6.01 6.61 6.16 5.65 5.51 6.42
Working capital turnover 52.26 24.66 50.26 245.54 24.92 530.50
Average No. Days
Average inventory processing period 114 107 104 100 98 98
Add: Average receivable collection period
Operating cycle
Less: Average payables payment period 61 55 59 65 66 57
Cash conversion cycle

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Lowe’s Cos. Inc. inventory turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Lowe’s Cos. Inc. payables turnover ratio increased from 2023 to 2024 but then decreased significantly from 2024 to 2025.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Lowe’s Cos. Inc. working capital turnover ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Lowe’s Cos. Inc. number of days of inventory outstanding deteriorated from 2023 to 2024 and from 2024 to 2025.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Lowe’s Cos. Inc. number of days of payables outstanding decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.

Inventory Turnover

Lowe’s Cos. Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Cost of sales 55,797 57,533 64,802 64,194 60,025 49,205
Merchandise inventory, net 17,409 16,894 18,532 17,605 16,193 13,179
Short-term Activity Ratio
Inventory turnover1 3.21 3.41 3.50 3.65 3.71 3.73
Benchmarks
Inventory Turnover, Competitors2
Amazon.com Inc. 9.54 9.15 8.40 8.34 9.80
Home Depot Inc. 4.53 4.85 4.20 4.55 5.25 5.00
TJX Cos. Inc. 6.36 6.21 5.82 5.66 6.13
Inventory Turnover, Sector
Consumer Discretionary Distribution & Retail 6.71 6.18 6.10 6.36 6.83
Inventory Turnover, Industry
Consumer Discretionary 7.78 6.99 6.67 7.04 7.48

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).

1 2025 Calculation
Inventory turnover = Cost of sales ÷ Merchandise inventory, net
= 55,797 ÷ 17,409 = 3.21

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Lowe’s Cos. Inc. inventory turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025.

Receivables Turnover

Lowe’s Cos. Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Net sales 83,674 86,377 97,059 96,250 89,597 72,148
Accounts receivable
Short-term Activity Ratio
Receivables turnover1
Benchmarks
Receivables Turnover, Competitors2
Amazon.com Inc. 18.60 16.86 19.32 23.26 26.09
Home Depot Inc. 32.53 45.87 47.45 44.12 44.15 52.34
TJX Cos. Inc. 102.49 88.70 93.79 69.69 108.00
Receivables Turnover, Sector
Consumer Discretionary Distribution & Retail 24.41 23.15 26.52 30.59 35.28
Receivables Turnover, Industry
Consumer Discretionary 18.67 17.85 17.96 21.22 21.85

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).

1 2025 Calculation
Receivables turnover = Net sales ÷ Accounts receivable
= 83,674 ÷ 0 =

2 Click competitor name to see calculations.


Payables Turnover

Lowe’s Cos. Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Cost of sales 55,797 57,533 64,802 64,194 60,025 49,205
Accounts payable 9,290 8,704 10,524 11,354 10,884 7,659
Short-term Activity Ratio
Payables turnover1 6.01 6.61 6.16 5.65 5.51 6.42
Benchmarks
Payables Turnover, Competitors2
Amazon.com Inc. 3.46 3.59 3.63 3.46 3.22
Home Depot Inc. 8.90 10.13 9.14 7.45 7.52 9.33
TJX Cos. Inc. 9.83 9.53 7.77 5.09 11.17
Payables Turnover, Sector
Consumer Discretionary Distribution & Retail 4.48 4.61 4.48 4.19 4.25
Payables Turnover, Industry
Consumer Discretionary 5.36 5.18 4.80 4.66 4.74

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).

1 2025 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 55,797 ÷ 9,290 = 6.01

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Lowe’s Cos. Inc. payables turnover ratio increased from 2023 to 2024 but then decreased significantly from 2024 to 2025.

Working Capital Turnover

Lowe’s Cos. Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Current assets 20,358 19,071 21,442 20,060 22,326 15,318
Less: Current liabilities 18,757 15,568 19,511 19,668 18,730 15,182
Working capital 1,601 3,503 1,931 392 3,596 136
 
Net sales 83,674 86,377 97,059 96,250 89,597 72,148
Short-term Activity Ratio
Working capital turnover1 52.26 24.66 50.26 245.54 24.92 530.50
Benchmarks
Working Capital Turnover, Competitors2
Amazon.com Inc. 55.79 77.32 24.33 60.82
Home Depot Inc. 52.78 19.67 16.81 417.56 24.87 76.81
TJX Cos. Inc. 24.50 23.22 17.40 6.51 23.97
Working Capital Turnover, Sector
Consumer Discretionary Distribution & Retail 37.38 42.11 21.83 63.17
Working Capital Turnover, Industry
Consumer Discretionary 13.56 14.99 18.57 11.02 13.68

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).

1 2025 Calculation
Working capital turnover = Net sales ÷ Working capital
= 83,674 ÷ 1,601 = 52.26

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Lowe’s Cos. Inc. working capital turnover ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.

Average Inventory Processing Period

Lowe’s Cos. Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data
Inventory turnover 3.21 3.41 3.50 3.65 3.71 3.73
Short-term Activity Ratio (no. days)
Average inventory processing period1 114 107 104 100 98 98
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Amazon.com Inc. 38 40 43 44 37
Home Depot Inc. 81 75 87 80 70 73
TJX Cos. Inc. 57 59 63 65 60
Average Inventory Processing Period, Sector
Consumer Discretionary Distribution & Retail 54 59 60 57 53
Average Inventory Processing Period, Industry
Consumer Discretionary 47 52 55 52 49

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).

1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.21 = 114

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Lowe’s Cos. Inc. number of days of inventory outstanding deteriorated from 2023 to 2024 and from 2024 to 2025.

Average Receivable Collection Period

Lowe’s Cos. Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data
Receivables turnover
Short-term Activity Ratio (no. days)
Average receivable collection period1
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Amazon.com Inc. 20 22 19 16 14
Home Depot Inc. 11 8 8 8 8 7
TJX Cos. Inc. 4 4 4 5 3
Average Receivable Collection Period, Sector
Consumer Discretionary Distribution & Retail 15 16 14 12 10
Average Receivable Collection Period, Industry
Consumer Discretionary 20 20 20 17 17

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).

1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

2 Click competitor name to see calculations.


Operating Cycle

Lowe’s Cos. Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data
Average inventory processing period 114 107 104 100 98 98
Average receivable collection period
Short-term Activity Ratio
Operating cycle1
Benchmarks
Operating Cycle, Competitors2
Amazon.com Inc. 58 62 62 60 51
Home Depot Inc. 92 83 95 88 78 80
TJX Cos. Inc. 61 63 67 70 63
Operating Cycle, Sector
Consumer Discretionary Distribution & Retail 69 75 74 69 63
Operating Cycle, Industry
Consumer Discretionary 67 72 75 69 66

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).

1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 114 + =

2 Click competitor name to see calculations.


Average Payables Payment Period

Lowe’s Cos. Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data
Payables turnover 6.01 6.61 6.16 5.65 5.51 6.42
Short-term Activity Ratio (no. days)
Average payables payment period1 61 55 59 65 66 57
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Amazon.com Inc. 106 102 101 105 113
Home Depot Inc. 41 36 40 49 49 39
TJX Cos. Inc. 37 38 47 72 33
Average Payables Payment Period, Sector
Consumer Discretionary Distribution & Retail 82 79 81 87 86
Average Payables Payment Period, Industry
Consumer Discretionary 68 70 76 78 77

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).

1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.01 = 61

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Lowe’s Cos. Inc. number of days of payables outstanding decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.

Cash Conversion Cycle

Lowe’s Cos. Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data
Average inventory processing period 114 107 104 100 98 98
Average receivable collection period
Average payables payment period 61 55 59 65 66 57
Short-term Activity Ratio
Cash conversion cycle1
Benchmarks
Cash Conversion Cycle, Competitors2
Amazon.com Inc. -48 -40 -39 -45 -62
Home Depot Inc. 51 47 55 39 29 41
TJX Cos. Inc. 24 25 20 -2 30
Cash Conversion Cycle, Sector
Consumer Discretionary Distribution & Retail -13 -4 -7 -18 -23
Cash Conversion Cycle, Industry
Consumer Discretionary -1 2 -1 -9 -11

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).

1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 114 + 61 =

2 Click competitor name to see calculations.