Lowe'S Companies(Low) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on equity
This chart shows the historical trend of return on equity for LOW compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Return on Equity (ROE)
Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.
Interpretation:
• In '2022', LOW's return on equity was -175.3%, measuring profitability for shareholders. Industry average for RETAIL: Building Materials in '2022' stood at -61.8%.
• In '2023', LOW's return on equity was -67.5%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for RETAIL: Building Materials in '2023' stood at -35.2%. Industry average increased by 26.6% compared to previous year.
• In '2024', LOW's return on equity was -52.7%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for RETAIL: Building Materials in '2024' stood at 21.5%. Industry average increased by 56.7% compared to previous year.
• In '2025', LOW's return on equity was -47.5%, measuring profitability for shareholders. The increase since '2024' reflects strengthening financial performance. Industry average for RETAIL: Building Materials in '2025' stood at 168.9%. Industry average increased by 147.4% compared to previous year.
Overall, LOW's return on equity has been volatile but showed an upward trend over the past 4 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.