Lowe'S Companies(Low) Financials: Payables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - payables turnover
This chart shows the historical trend of payables turnover for LOW compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Payables Turnover
Definition: Payables turnover shows how fast the company pays its suppliers for goods or services bought on credit. A high turnover means the company pays suppliers quickly, which may reflect strong cash flow or favorable terms. A very low turnover might mean the company is stretching payments to preserve cash — or possibly experiencing financial strain.
Interpretation:
• In '2022', LOW's payables turnover was 5.19, indicating how promptly the company pays its suppliers. Industry average for RETAIL: Building Materials in '2022' stood at 5.35.
• In '2023', LOW's payables turnover was 5.15, indicating how promptly the company pays its suppliers. The decline from '2022' may indicate some operational or financial challenges. Industry average for RETAIL: Building Materials in '2023' stood at 5.07. Industry average declined by 0.28 from previous year.
• In '2024', LOW's payables turnover was 5.13, indicating how promptly the company pays its suppliers. The decline from '2023' may indicate some operational or financial challenges. Industry average for RETAIL: Building Materials in '2024' stood at 4.98. Industry average declined by 0.09 from previous year.
• In '2025', LOW's payables turnover was 5.46, indicating how promptly the company pays its suppliers. The increase since '2024' reflects strengthening financial performance. Industry average for RETAIL: Building Materials in '2025' stood at 7.17. Industry average increased by 2.19 compared to previous year.
Overall, LOW's payables turnover has steadily improved over the past 4 years.
Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Good Range: Ranges 5-15 depending on industry.