Lowe’s Cos. Inc. (NYSE:LOW)

The analysis of the financial turnover and period metrics over the indicated periods reveals several notable patterns and trends.

Inventory Turnover

The inventory turnover ratio fluctuated moderately over the periods, generally ranging between approximately 3.0 and 3.9. It peaked at 3.9 early in the timeline, then showed a tendency towards stability with occasional declines, with the lowest values observed around 3.03 to 3.18 in the later periods. This indicates a relatively consistent rate of inventory renewal, though some slight deceleration in inventory movement is observable in the more recent periods.

Receivables Turnover

Data for receivables turnover is absent for most of the periods except the last one, which records a very high value of 69.29. This isolated figure is not sufficient to assess trends but suggests a possible significant acceleration or accounting adjustment in receivables management in the latest period.

Payables Turnover

Payables turnover demonstrates considerable fluctuations, starting around 4.63 and varying between approximately 4.18 and 6.61. Notably, there are periods with sharp increases, especially starting from early 2023 onwards, with peaks above 6.0. The variation indicates changing payment practices or vendor terms, potentially reflecting negotiation adjustments or cash flow management strategies.

Working Capital Turnover

Working capital turnover shows dramatic volatility, with values ranging from lows around 11.6 to extreme highs exceeding 290 during certain periods. Midway through the timeline, there is an anomalous spike at 245.54 and later values such as 290.03 and 82.22. These outliers suggest either reporting anomalies or significant shifts in working capital efficiency. Outside of these extremes, typical values hover between approximately 20 and 50, indicating moderate efficiency in utilizing working capital to generate sales.

Average Inventory Processing Period

The average inventory processing period mostly oscillates between 94 and 117 days, with a general tendency toward gradual increase in later periods. Higher values observed near the end indicate slightly longer holding periods, which may imply slower inventory turnover or possible buildup of stock.

Average Receivable Collection Period

With data available only for the last recorded period showing 5 days, it suggests a very tight receivable collection process, implying efficient credit management during that period.

Operating Cycle

Data recorded only in the last period shows 117 days for the operating cycle, which aligns with the observed inventory and receivable periods, indicating the time from inventory purchase to cash collection remains roughly four months.

Average Payables Payment Period

The average payables payment period shifts between roughly 55 and 87 days, generally trending lower over the timeline, particularly in recent periods. This reduction in days payable outstanding suggests acceleration in payments to suppliers, potentially indicating improved supplier relations or fewer payment delays.

Cash Conversion Cycle

The reported cash conversion cycle is 50 days in the last period, representing the net time taken to convert inventory and receivables into cash after accounting for payable deferrals. This relatively moderate cycle length implies balanced liquidity management.

Overall, the data demonstrates consistent inventory management with some recent slight deceleration in turnover, considerable variability in payables and working capital efficiency, and indications of efficient receivables collection. The volatile working capital turnover suggests periodic fluctuations in operational efficiency or reported figures that warrant further investigation.

The analysis of the quarterly financial data reveals notable trends and patterns in the company's cost of sales, merchandise inventory, and inventory turnover ratio over the observed periods.

Cost of Sales

The cost of sales exhibited significant fluctuations throughout the periods. Initially, there was a marked increase from May 2020 through July 2020, reaching a peak around mid-2021. Subsequently, the values generally demonstrated a downward adjustment with intermittent rises and falls. Toward early 2024, the cost of sales declined to lower levels compared to the peaks seen in 2021 but showed some rebound in the latter periods. This pattern indicates variability in costs potentially related to seasonal factors, supply chain conditions, or demand changes.

Merchandise Inventory, Net

Merchandise inventory levels generally trended upward from mid-2020 to mid-2022, reflecting an accumulation or stockpiling of inventory. This increase reached its apex around April 2022, after which inventory levels started to moderate but remained elevated relative to the early 2020 figures. Towards late 2024, inventory figures showed signs of stabilization with some volatility but not returning to the earlier lower levels. The inventory behavior suggests a strategic management of stock possibly aimed at accommodating fluctuating sales or supply variability.

Inventory Turnover Ratio

The inventory turnover ratio fluctuated between approximately 3.0 and 3.9 throughout the reported quarters. The ratio peaked around the middle of 2020 but generally demonstrated a modest declining trend afterward, with some intermittent recoveries. Lower turnover ratios in the later periods suggest that inventory was being replenished more frequently relative to sales in earlier periods but later turnover slowed, indicating slower movement of inventory. This trend might reflect changes in sales velocity or inventory management efficiency.

In summary, the data indicates dynamic inventory and cost management over the time frame, with inventory levels rising and stabilizing after mid-2022, and cost of sales showing peaks and troughs reflective of varying operational conditions. The inventory turnover ratio’s gradual decline suggests a deceleration in inventory movement relative to sales, potentially warranting further examination of sales patterns and supply chain effectiveness.

Net Sales

Net sales demonstrate a marked seasonality and volatility over the observed periods. Starting at 19,675 million USD in May 2020, sales escalated sharply to a peak of 27,302 million USD by July 2020, indicating a strong increase over the spring-summer period. Following this peak, there was a decline in the subsequent quarter to 22,309 million USD and further fluctuations were observed throughout the year.

From early 2021 through the end of 2021, net sales show a cyclical pattern with rises in mid-year quarters often followed by declines at the start of the next year. For instance, net sales grew to 27,570 million USD in July 2021 but fell to 22,918 million USD by October 2021. Similar quarterly fluctuations continued into 2022 and 2023.

Notably, after April 2022, the quarterly high points appear to be somewhat lower than previous years, suggesting potential pressure or changes in market dynamics or consumer behavior. The numbers for 2023 and early 2024 indicate continued variability but with some quarters approaching 25,000 million USD.

In the most recent periods from late 2024 into 2025, the data suggest a downward trend in net sales, with figures generally below 21,000 million USD and some quarters dropping below 19,000 million USD, indicating potential challenges in revenue generation or reduced sales activity.

Receivables, net

Receivables data is largely unavailable except for the last reported period, where net receivables amount to 1,216 million USD. The absence of previous data limits the ability to identify trends or assess changes over time in accounts receivable management or credit policies.

Receivables Turnover

The sole available receivables turnover ratio for the final period shows a figure of 69.29, which is relatively high and may indicate efficient collection processes or low levels of receivables relative to sales. Without historical data, however, it is difficult to determine whether this reflects an improvement or deterioration in credit management.

The analysis of the quarterly financial data reveals several notable trends and shifts in the key financial metrics over the observed periods.

Cost of Sales

The cost of sales exhibits a generally fluctuating pattern with notable peaks and troughs. Starting at 13,162 million USD, it escalated sharply to a peak of 18,343 million USD by July 2022. This peak was followed by a gradual decline, reaching a low of approximately 12,458 million USD in August 2025, before a modest increase toward the end of the observed periods. The fluctuations suggest variation in sales volume or changes in inventory and supplier pricing strategies across quarters.

Accounts Payable

Accounts payable values show a relatively stable but somewhat volatile trend. Initially at 10,841 million USD, there are several rises and falls without a strong upward or downward trajectory. The highest points generally correspond to periods following peaks in cost of sales, such as the 13,831 million USD recorded in April 2022. The data indicates that the company's payment obligations to suppliers fluctuate, potentially reflecting seasonal purchasing patterns or changes in credit terms.

Payables Turnover Ratio

The payables turnover ratio, which measures how quickly a company pays off its suppliers, fluctuates within a range approximately between 4.18 and 6.61 times per period. Early periods demonstrated lower turnover ratios around 4.2 to 4.6, while mid and later periods show increases peaking at 6.61 in February 2024. A rising ratio indicates quicker payment of payables, suggesting improved liquidity or aggressive payment policies. However, some periods show modest declines, reflecting intermittent lengthening of payment cycles.

Overall, the data indicates that while the company experiences variable cost of sales, accounts payable management reflects adaptive responses to these variations. The payables turnover ratio’s upward trend in certain periods points toward enhanced efficiency in paying suppliers, which might be aimed at securing favorable terms. However, the volatility in accounts payable balances suggests the payment strategy shifts in response to operational needs or external economic factors.

The financial data reveals several noteworthy trends relating to working capital, net sales, and working capital turnover over the observed periods.

Working Capital

Over the presented quarters, working capital exhibits significant fluctuations. Initial values start moderately high, peaking around early 2021, followed by a pronounced decline into early 2022. After this low point, there is a partial recovery with continued volatility seen in subsequent quarters. The amounts generally trend downward toward the later periods, with intermittent increases, suggesting challenges in maintaining stable liquidity levels.

Net Sales

Net sales demonstrate a cyclical pattern with periods of increase followed by declines. There is a noticeable peak in mid-2021, followed by a decrease through early 2022. Subsequent quarters show rebounds intertwined with downturns, indicating a moderately volatile revenue stream. Although sales recover in certain intervals, there is no consistent upward trend, reflecting variability in market demand or operational factors impacting sales volumes.

Working Capital Turnover

The working capital turnover ratio is characterized by extreme variability, with several anomalous spikes, particularly in early 2022 and beyond, reaching unusually high figures. These abrupt increases may indicate periods where working capital was relatively low compared to net sales, suggesting efficiency in using working capital or potential issues in managing short-term assets and liabilities. However, the irregularity and magnitude of these fluctuations complicate a stable interpretation of operational efficiency over time.

Overall, the data implies that the company experienced episodic liquidity management challenges and fluctuating sales performance throughout the periods. The inconsistent patterns in working capital and its turnover ratio point to variable operational conditions and possibly strategic shifts. Continued monitoring of these metrics is advisable to better understand underlying causes and to implement measures aimed at stabilizing financial health.

The financial data under review exhibits trends in inventory management measured through two key indicators: inventory turnover ratio and average inventory processing period. These metrics provide insights into operational efficiency related to stock handling over the specified periods.

Inventory Turnover Ratio

This ratio fluctuates within a relatively narrow range, indicating variations in the frequency of inventory being sold and replaced over time. Starting at 3.52 in early May 2020, the ratio generally ascended to a peak of approximately 3.9 within the same year, signifying improved inventory turnover during that period.

Post-2020, the ratio experienced moderate volatility with several ups and downs, oscillating mostly between 3.1 and 3.6 values. Notably, there are intermittent declines below 3.2, particularly from early 2024 through to late 2025, which might suggest periods of slower inventory movement or strategic alterations in stock levels.

Overall, the ratio does not depict a consistent upward or downward trend but highlights cyclical changes potentially influenced by market demand, supply chain conditions, or seasonal factors.

Average Inventory Processing Period

This metric, expressed in days, inversely correlates to inventory turnover and reflects the average duration inventory remains on hand before sale. The period began at 104 days in early May 2020, briefly improving to a low around 94 days by mid-2020, indicating faster processing.

Subsequent data reveal a general lengthening trend in the average processing period, with frequent spikes above 110 days. For instance, from 2022 onwards, values often exceed 110 days, peaking at 121 days in mid-2025, suggesting inventory held longer before sale.

This upward trajectory may indicate challenges in inventory movement, possible overstocking, or strategic shifts to maintain higher inventory levels as a buffer against supply disruptions or increased product variety.

Combined Interpretation

The inverse relationship between the two metrics is evident: periods with higher inventory turnover correspond with shorter processing periods and vice versa. The oscillation between these values over time suggests fluctuating operational efficiency and inventory management effectiveness.

The absence of a sustained improvement or deterioration in these metrics highlights a stable but variable inventory management environment. It implies ongoing adjustments and responses to external and internal factors rather than clear trend-driven performance changes.

The financial data reveals limited information concerning receivables turnover and the average receivable collection period over the periods observed. Specifically, the receivables turnover ratio and the average receivable collection period are only available for the last recorded quarter, with values of 69.29 and 5 days respectively.

Receivables Turnover Ratio

The receivables turnover ratio for the final period is notably high at 69.29. This indicates a very efficient process in collecting receivables within that period, reflecting strong management of accounts receivable or rapid cash conversion.

Average Receivable Collection Period

The average collection period is recorded as 5 days in the corresponding period, which aligns with the high receivables turnover ratio, suggesting that the company is able to convert its receivables into cash very quickly, minimizing credit risk and enhancing liquidity.

Trend Analysis

Due to the absence of data in previous periods, no trend or comparative analysis can be drawn for these metrics. The solitary available point suggests a high level of receivables management efficiency in the most recent period but does not indicate whether this is a stable, improving, or declining pattern over time.

The analysis of the available quarterly financial data reveals certain key trends related to the inventory and receivables management periods and operating cycle.

Average Inventory Processing Period

This metric exhibits fluctuations in the range of approximately 94 to 121 days over the observed timeframe. Starting at 104 days, it initially declined to a low of 94 days, indicating an improvement in inventory turnover efficiency. However, it subsequently showed variability, increasing to as high as 121 days at one point, before decreasing again. The overall trend suggests intermittent challenges in maintaining consistent inventory processing times, with recent periods showing some stabilization near the 110-day mark.

Average Receivable Collection Period

Data for this period are largely missing except for the latest available figure of 5 days. This exceptionally low number suggests highly efficient receivables collection at the most recent point in time, although the lack of earlier data prevents any assessment of trend or consistency.

Operating Cycle

Only one data point is present for the operating cycle, recorded at 117 days. This figure combines inventory processing and receivables collection periods, indicating an overall period required to convert inventory purchases into cash receipts. With a single data point, trend analysis is not possible, but the length aligns roughly with the inventory processing period, suggesting inventory management has a dominant effect.

In summary, the company appears to experience variability in the inventory processing timeline, which influences overall operating efficiency. The recent receivables collection period is notably short, representing a potential area of strength in working capital management. However, the limited data points for receivables and operating cycle constrain definitive conclusions in these respects. Continuous monitoring of these metrics would be advisable to identify and address any inefficiencies promptly.

The analysis of the payables turnover ratio and the average payables payment period over the observed time frame reveals several fluctuations indicating changes in the company's payment dynamics to suppliers.

Payables Turnover Ratio

The payables turnover ratio exhibits variability, oscillating between lows around 4.18 and highs reaching above 6.6. Early periods show moderate turnover values with a notable increase starting around early 2023, peaking at 6.61 in February 2024. Subsequently, there is a decline in the ratio with some intermittent increases. Such fluctuations suggest periods of faster and slower payments to suppliers, with an overall trend in some recent periods indicating acceleration in payables turnover.

Average Payables Payment Period

The average payment period, expressed in days, inversely mirrors the turnover ratio to some extent. Initial values are relatively high, with days extending up to 87, indicating slower payment. After this early phase, the payment period generally trends downward, reaching a minimum of 55 days in February 2024, which corresponds to the peak payables turnover ratio. Following this minimum, the period increases again, moving back into the 60s and low 70s, indicating a lengthening of the time taken to settle payables in later periods.

Correlation and Implications

The inverse relationship observed between the payables turnover and the average payment period is consistent with financial principles; as the company pays its suppliers more quickly, the turnover ratio increases, and the average payment period decreases. The periods of increased payables turnover suggest times when the company improves cash flow management by reducing outstanding payables duration or favorable renegotiations of payment terms. Conversely, periods with a lengthened payment period may reflect strategic extensions of payable terms or cash preservation tactics.

Inventory Processing Period

The average inventory processing period exhibits fluctuations over the observed periods, generally ranging between 94 and 121 days. Initially, it decreased from 104 days to a low of 94 days within the early quarters, followed by modest variability with intermittent increases and decreases. Notably, there is a rising trend from early 2022 onwards, reaching peaks of 117 and 121 days in subsequent quarters. This indicates that the duration to convert inventory into sales has slightly lengthened over time, implying potential shifts in inventory management or sales velocity.

Receivable Collection Period

Data on average receivable collection periods is largely unavailable except for a single figure of 5 days reported in the latest period. The absence of information throughout most periods limits the ability to identify meaningful trends or performance changes in receivables turnover.

Payables Payment Period

The average payables payment period displays variability without a consistent trend. Starting at 79 days, it increased to 87 days before exhibiting declines and fluctuations between 55 and 81 days across the quarters. In recent periods, it fluctuates mainly between 60 and 75 days, showing occasional decreases but no clear directional change. This variation suggests dynamic management of payment timelines to suppliers, potentially reflecting strategic cash flow considerations.

Cash Conversion Cycle

Information on the cash conversion cycle is mostly missing, with only a value of 50 days recorded in the last period. The limited data prevents definitive conclusions on the overall efficiency in managing the conversion of investments in inventory and receivables into cash.