Earnings Quality
LOW-US’s net income margin for the last twelve months is around the peer median (3.9% vs. peer median of 3.3%). This average margin and relatively conservative accrual policy (3.9% vs. peer median of 1.0%) suggests possible understatement of its reported net income.
LOW-US’s accruals over the last twelve months are positive suggesting a buildup of reserves. In addition, the level of accrual is greater than the peer median — which suggests a relatively strong buildup in reserves compared to its peers.
Trend Charts
Company Profile
Lowe’s Cos., Inc. is engaged in the retail sale of home improvement products. The company offers a complete line of products for maintenance, repair, remodeling, home decorating and property maintenance. It also offers home improvement products in the following categories: appliances, lumber, paint, millwork, building materials, lawn and landscape products, flooring, rough plumbing, seasonal living, tools, hardware, fashion plumbing, lighting, nursery, outdoor power equipment, cabinets and countertops, home organization, rough electrical and home fashion. The company operates its business through one reportable segment: Home improvement retail stores. The Home improvement retail stores segment sells similar products and services, use similar processes to sell those products and services, and also sell their products and services to similar classes of customers. It was founded in 1946 and is headquartered in Mooresville, NC.
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This article was originally written by abha.dawesar, and posted on CapitalCube.
