10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Lowe's's 10-Year ROIIC % for the quarter that ended in Jan. 2024 was 147.87%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Lowe's's 10-Year ROIIC % or its related term are showing as below:
LOW's 10-Year ROIIC % is ranked better than 96.97% of 1022
companies
in the Retail - Cyclical industry
Industry Median: 3.585
vs LOW: 147.87
Lowe's 10-Year ROIIC % Historical Data
The historical data trend for Lowe's's 10-Year ROIIC % 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 10-Year ROIIC %
For the Home Improvement Retail subindustry, Lowe's's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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 10-Year ROIIC % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Lowe's's 10-Year ROIIC % falls into.
Lowe's 10-Year ROIIC % Calculation
Lowe's's 10-Year ROIIC % for the quarter that ended in Jan. 2024 is calculated as:
10-Year ROIIC %
=
10-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
10-Year Incremental Invested Capital**
=
( 8775.2301 (Jan. 2024) - 2582.3376 (Jan. 2014) )
/
( 30754 (Jan. 2024) - 26566 (Jan. 2014) )
=
6192.8925
/
4188
=
147.87%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Lowe's (NYSE:LOW) 10-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Lowe's 10-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Lowe's's 10-Year ROIIC % 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 low-double-digit share of the domestic home improvement market, based on U.S. Census data and management's market size estimates.
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