Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
lululemon athletica inc., consolidated balance sheet: assets
US$ in thousands
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
An analysis of the annual financial data reveals several noteworthy trends across the reported periods.
- Cash and cash equivalents
- There is an overall increasing trend in cash and cash equivalents, rising from approximately 1.09 billion to about 2.24 billion by January 28, 2024, followed by a slight decrease to approximately 1.98 billion by February 2, 2025. This indicates strong liquidity management with substantial cash reserves maintained throughout.
- Accounts receivable, net
- Accounts receivable show a generally increasing pattern, growing from 40.2 million in February 2020 to a peak of 132.9 million in January 2023, then slightly decreasing to around 120.2 million by February 2025. The peak suggests increased sales on credit or extended payment terms during that period.
- Inventories
- Inventories consistently increase over the years, nearly tripling from about 518.5 million to over 1.44 billion by February 2025. This significant build-up could reflect either preparation for anticipated demand growth or potential inventory accumulation risk.
- Prepaid and receivable income taxes
- This item rises from 85.2 million to approximately 185.6 million by January 29, 2023, before modestly stabilizing near 182 million in subsequent years, suggesting changes in tax payments and recoverables aligning with earnings fluctuations.
- Prepaid expenses
- Prepaid expenses more than double, moving from roughly 64.6 million to around 147.7 million by February 2025, indicating increased upfront payments which could relate to contracts or services expected to benefit future periods.
- Forward currency contract assets
- These assets exhibit volatility with an initial rise up to 19.1 million in early 2022, a sharp drop to 647 thousand in January 2024, and then a substantial rise to 76.8 million by February 2025. This reflects active currency hedging strategies responding to foreign exchange risk fluctuations.
- Other current assets and prepaid expenses and other current assets
- Both categories reveal growth, with other current assets rising notably until January 2023 before declining, and the combined category showing steady increases with a slight dip in January 2024 and recovery thereafter. This suggests variability in short-term assets and possible reclassification effects.
- Current assets
- There is a clear upward trajectory in current assets, doubling from approximately 1.81 billion to over 4 billion in five years, stabilizing slightly thereafter. This trend is aligned with increases in cash, receivables, and inventories, indicating enhanced short-term resource availability.
- Property and equipment, net
- This asset category grows consistently, increasing from 671.7 million to over 1.78 billion, reflecting ongoing capital expenditures possibly due to expansion or modernization efforts.
- Right-of-use operating lease assets
- These assets display strong growth, doubling from about 690 million to over 1.41 billion, suggesting increased lease commitments, likely related to retail locations or facilities.
- Goodwill
- Goodwill shows considerable fluctuation, peaking at 386.9 million in early 2021 and 2022, but decreasing sharply to around 15.9 million by February 2025. This volatility could imply impairment charges or disposals of previously acquired businesses.
- Intangible assets, net
- There is a notable decrease after peaking at approximately 80 million in early 2021, falling to roughly 11.7 million by February 2025, indicative of amortization or asset write-downs over time.
- Deferred income tax assets
- These assets decrease significantly from 31.4 million to around 6.7 million early in the period, remaining low before steadily recovering to 17.1 million by the last period, suggesting shifting tax timing differences or changes in tax planning.
- Cloud computing arrangement implementation costs
- A consistent upward trend is observed, increasing from about 24.6 million to 161.8 million, reflecting growing investments in technology infrastructure.
- Security deposits
- Security deposits steadily increase from 19.9 million to 44.1 million, pointing to expanded leasing or contractual agreements requiring higher upfront deposits.
- Other non-current assets
- These assets more than quadruple from 56.2 million to 237.8 million, indicating growth in miscellaneous long-term resources or investments.
- Non-current assets
- The aggregate of non-current assets rises from approximately 1.47 billion to 3.62 billion, evidencing continued investment in long-term assets and growth in the asset base overall.
- Total assets
- Total assets demonstrate a strong consistent increase from roughly 3.28 billion to 7.60 billion over the reported periods, indicating significant expansion of the company's asset base and scaling of operations.