Financial statement analysis and common stock valuation

Analysis of Geographic Areas

lululemon athletica inc. operates in 4 regions: United States; Canada; People’s Republic of China; and Other geographic areas.

• Area Asset Turnover
• Net revenue
• Long-lived assets

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Analysis of Long-term (Investment) Activity Ratios

Measures how efficiently lululemon athletica inc. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
• Total Asset Turnover
• Equity Turnover

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the lululemon athletica inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Evaluates revenues and output generated by the lululemon athletica inc. assets. Operating performance ratios describe the relationship between the lululemon athletica inc. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of lululemon athletica inc., the result of its operating activities.

Analysis of Solvency Ratios

Examines lululemon athletica inc. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage
• Interest Coverage
• Fixed Charge Coverage

Cash Flow Statement

The cash flow statement provides information about lululemon athletica inc. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on lululemon athletica inc. balance sheet.

Analysis of Profitability Ratios

Measures the income of lululemon athletica inc. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)