Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Lowe's's Average Total Inventories for the quarter that ended in Jul. 2024 was $17,533 Mil. Lowe's's Revenue for the
three
months ended in Jul. 2024 was $23,586 Mil.
Lowe's's Inventory-to-Revenue for the quarter that ended in Jul. 2024 was 0.74.
Lowe's's Inventory-to-Revenue for the quarter that ended in Jul. 2024
declined
from Apr. 2024 (0.82) to Apr. 2024 (0.74)
A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:
1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Lowe's's Days Inventory for the
three
months ended in Jul. 2024 was 101.96.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Lowe's's Inventory Turnover for the quarter that ended in Jul. 2024 was 0.89.
Lowe's Inventory-to-Revenue Historical Data
The historical data trend for Lowe's's Inventory-to-Revenue 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.
Competitive Comparison of Lowe's's Inventory-to-Revenue
For the Home Improvement Retail subindustry, Lowe's's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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.
Lowe's's Inventory-to-Revenue Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Lowe's's Inventory-to-Revenue falls into.
Lowe's Inventory-to-Revenue Calculation
Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Lowe's's Inventory-to-Revenue for the fiscal year that ended in Jan. 2024 is calculated as
* 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.
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:
1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.
More Related Terms:
1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Lowe's's Days Inventory for the
three
months ended in Jul. 2024 is calculated as:
* 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 Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of Lowe's's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
Lowe's is the second-largest home improvement retailer in the world, operating more than 1,700 stores in the United States, after the 2023 divestiture of its Canadian locations (RONA, Lowe's Canada, Réno-Dépôt, and Dick's Lumber). The firm's stores offer products and services for home decorating, maintenance, repair, and remodeling, with maintenance and repair accounting for two thirds of products sold. Lowe's targets retail do-it-yourself (around 75% of sales) and do-it-for-me customers as well as commercial and professional business clients (around 25% of sales). We estimate Lowe's captures a high-single-digit share of the domestic home improvement market, based on US Census data and management's market size estimates.
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