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Lowe's's earnings before interest and taxes (EBIT) for the three months ended in Jul. 2024 was $3,499 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2024 was $10,607 Mil.
EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Lowe's's annualized ROC % for the quarter that ended in Jul. 2024 was 34.47%. Lowe's's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2024 was 60.69%.
EBIT is also linked to Joel Greenblatt's definition of earnings yield. Lowe's's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jul. 2024 was 5.76%.
The historical data trend for Lowe's's EBIT can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lowe's Annual Data | |||||||||||||||||||||
Trend | Jan15 | Jan16 | Jan17 | Jan18 | Jan19 | Jan20 | Jan21 | Jan22 | Jan23 | Jan24 | |||||||||||
EBIT | Get a 7-Day Free Trial | 6,341.00 | 8,611.00 | 12,105.00 | 10,196.00 | 11,658.00 |
Lowe's Quarterly Data | ||||||||||||||||||||
Oct19 | Jan20 | Apr20 | Jul20 | Oct20 | Jan21 | Apr21 | Jul21 | Oct21 | Jan22 | Apr22 | Jul22 | Oct22 | Jan23 | Apr23 | Jul23 | Oct23 | Jan24 | Apr24 | Jul24 | |
EBIT | Get a 7-Day Free Trial | 3,921.00 | 2,723.00 | 1,711.00 | 2,674.00 | 3,499.00 |
For the Home Improvement Retail subindustry, Lowe's's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Lowe's's EV-to-EBIT falls into.
EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.
EBIT for the trailing twelve months (TTM) ended in Jul. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $10,607 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lowe's (NYSE:LOW) EBIT Explanation
1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Lowe's's annualized ROC % for the quarter that ended in Jul. 2024 is calculated as:
ROC % (Q: Jul. 2024 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Apr. 2024 ) | + | Invested Capital (Q: Jul. 2024 )) | / count ) |
= | 13788 * ( 1 - 23.87% ) | / | ( (30391 | + | 30507) | / 2 ) |
= | 10496.8044 | / | 30449 | |||
= | 34.47 % |
where
Invested Capital | (Q: Apr. 2024 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 45365 | - | 11737 | - | ( 3237 | - | max(0, 19506 | - | 22750 | + | 3237 | )) |
= | 30391 |
Invested Capital | (Q: Jul. 2024 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 44934 | - | 10336 | - | ( 4360 | - | max(0, 18246 | - | 22337 | + | 4360 | )) |
= | 30507 |
Note: The Operating Income data used here is four times the quarterly (Jul. 2024) data.
2. Joel Greenblatt's definition of Return on Capital:
Lowe's's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2024 is calculated as:
ROC (Joel Greenblatt) % | (Q: Jul. 2024 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Apr. 2024 | Q: Jul. 2024 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | 13996 | / | ( ( (21360 + max(1853, 0)) | + | (21334 + max(1573, 0)) ) | / | 2 ) |
= | 13996 | / | ( ( 23213 | + | 22907 ) | / | 2 ) |
= | 13996 | / | 23060 | ||||
= | 60.69 % |
where Working Capital is:
Working Capital | (Q: Apr. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (0 | + | 18224 | + | 1289) | - | (11737 | + | 1409 | + | 4514) |
= | 1853 |
Working Capital | (Q: Jul. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (0 | + | 16841 | + | 1136) | - | (10336 | + | 1417 | + | 4651) |
= | 1573 |
When net working capital is negative, 0 is used.
Note: The EBIT data used here is four times the quarterly (Jul. 2024) EBIT data.
3. It is also linked to Joel Greenblatt's definition of Earnings Yield:
Lowe's's Earnings Yield (Joel Greenblatt) % for today is calculated as:
Earnings Yield (Joel Greenblatt) % | = | EBIT (TTM) | / | Enterprise Value (Q: Jul. 2024 ) |
= | 10607 | / | 184164.023 | |
= | 5.76 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Thank you for viewing the detailed overview of Lowe's's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.
Griggs Dan Clayton Jr | officer: Vice President, CAO | 1000 LOWES BOULEVARD, MOORESVILLE NC 28117 |
Brandon J Sink | officer: EVP, Chief Financial Officer | 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117 |
Seemantini Godbole | officer: EVP, Chief Information Officer | 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117 |
Janice Dupre Little | officer: EVP Human Resources | 1000 LOWES BOULEVARD, MOORESVILLE NC 28117 |
Joseph Michael Mcfarland | officer: EVP, Stores | 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117 |
Quonta D Vance | officer: EVP, Pro & Home Services | 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117 |
Donald Frieson | officer: EVP, Supply Chain | 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117 |
William P Boltz | officer: EVP, Merchandising | 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117 |
Juliette Williams Pryor | officer: EVP, CLO & Corp. Sec. | 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117 |
Ross W Mccanless | officer: SR VP Gen Counsel & Secretary | |
Scott H Baxter | director | 400 NORTH ELM STREET, GREENSBORO NC 27401 |
Taylor Colleen | director | C/O BILL.COM HOLDINGS, INC., 1800 EMBARCADERO ROAD, PALO ALTO CA 94303 |
Stone West Mary E | director | C/O HASBRO, INC., 1011 NEWPORT AVENUE, PAWTUCKET RI 02861 |
Daniel J Heinrich | director | CLOROX CO, 1221 BROADWAY, OAKLAND CA 94612 |
David H Batchelder | director | 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117 |
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