Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
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Economic Profit
lululemon athletica inc., economic profit calculation
US$ in thousands
| 12 months ended: | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|---|---|
| Net operating profit after taxes (NOPAT)1 | |||||||
| Cost of capital2 | |||||||
| Invested capital3 | |||||||
| Economic profit4 | |||||||
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).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= – × =
- Net Operating Profit After Taxes (NOPAT)
- The net operating profit after taxes (NOPAT) displays notable fluctuations over the analyzed periods. An initial decline occurred from approximately 712 million US dollars in early 2020 to around 680 million in early 2021. This was followed by a significant increase to just above 1.04 billion in early 2022. Subsequently, there was a decrease to approximately 934 million in early 2023 before a sharp rise in the later years, reaching about 1.62 billion in early 2024 and further increasing to nearly 1.93 billion by early 2025.
- Cost of Capital
- The cost of capital remained relatively stable, fluctuating slightly between 16.07% and 16.29% over the entire timeframe. There is a subtle downward trend from a high of 16.29% in early 2021 to the lowest level of 16.07% in early 2025, indicating a marginal improvement in the cost environment or risk perception related to the company's capital.
- Invested Capital
- The invested capital shows a consistent upward trajectory throughout the observed periods. Starting at roughly 3.01 billion US dollars in early 2020, it continuously increased year over year to approximately 3.67 billion in early 2021, 3.91 billion in early 2022, 4.53 billion in early 2023, followed by a steeper growth to 5.98 billion in early 2024 and reaching about 6.51 billion by early 2025. This trend reflects ongoing investment or expansion efforts within the company.
- Economic Profit
- Economic profit shows volatility but an overall upward trend. It started at around 225 million US dollars in early 2020, decreased sharply to approximately 82 million in early 2021, then rebounded to about 404 million in early 2022. This was followed by a drop to near 201 million in early 2023. From that point forward, economic profit increased substantially to roughly 651 million in early 2024 and further to approximately 883 million by early 2025. This pattern suggests periods of varying value creation performance, with significant improvements in the most recent years.
Net Operating Profit after Taxes (NOPAT)
lululemon athletica inc., NOPAT calculation
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).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in unredeemed gift card liability.
3 Addition of increase (decrease) in equity equivalents to net income.
4 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= × =
5 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= × 21.00% =
6 Addition of after taxes interest expense to net income.
- Net Income
- The net income exhibited a fluctuating yet generally upward trend over the analyzed periods. Starting at 645,596 thousand US dollars in February 2020, it declined to 588,913 thousand US dollars by January 2021. Subsequently, there was a significant increase to 975,322 thousand US dollars in January 2022, followed by a decrease to 854,800 thousand US dollars in January 2023. However, the net income surged notably in the most recent periods, reaching 1,550,190 thousand US dollars in January 2024 and further increasing to 1,814,616 thousand US dollars by February 2025. This overall trend suggests growing profitability with some volatility.
- Net Operating Profit After Taxes (NOPAT)
- NOPAT followed a pattern similar to net income, indicating consistent operational performance trends. Beginning at 711,860 thousand US dollars in February 2020, it experienced a reduction to 680,052 thousand US dollars in January 2021. This was followed by a sharp increase to 1,040,291 thousand US dollars in January 2022 and a slight decline to 933,695 thousand US dollars in January 2023. The figure then escalated substantially in the subsequent years to 1,622,788 thousand US dollars in January 2024 and 1,928,398 thousand US dollars by February 2025. The increase in NOPAT over time reflects enhanced operating efficiency and profitability after accounting for taxes.
- Summary Insights
- Both net income and NOPAT demonstrate an overall upward trajectory despite short-term decreases around the early 2021 and 2023 periods. The strong rebound and substantial increases in the latest years highlight improved profitability and operational effectiveness. The parallel trends of net income and NOPAT suggest that the company's core operations are driving earnings growth, with effective cost management and tax impacts potentially influencing fluctuations. The data points to a positive financial health outlook with expanding profit-generating capabilities over the period analyzed.
Cash Operating Taxes
lululemon athletica inc., cash operating taxes calculation
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).
- Income Tax Expense
- The income tax expense demonstrates a general increasing trend over the analyzed years. Starting at approximately $252 million in early 2020, it slightly decreased to around $230 million in early 2021. Following this period, a notable upward trajectory is observed, with values rising to approximately $359 million in early 2022, then increasing more pronouncedly to about $478 million in early 2023. This upward trend continues with values reaching approximately $626 million in early 2024 and further escalating to around $761 million by early 2025.
- Cash Operating Taxes
- Cash operating taxes show a somewhat similar pattern, albeit with more variation. Initially, the amount decreased from roughly $233 million in early 2020 to nearly $202 million in early 2021. Subsequently, there is a significant increase to about $371 million in early 2022 and a further rise to nearly $475 million in early 2023. From early 2023 to early 2024, there is a substantial increase to approximately $664 million, followed by a slight decrease to around $717 million in early 2025.
- Comparative Insights
- Both income tax expense and cash operating taxes exhibit upward trends over the observed period, with the most significant growth occurring after early 2021. The cash operating taxes display higher volatility with a notable spike followed by a minor decline in the last year, whereas income tax expense consistently increases year over year after an initial dip. The rise in these tax-related expenses may reflect growth in taxable income or changes in tax regulation impacting the financial charges of the company.
Invested Capital
lululemon athletica inc., invested capital calculation (financing approach)
US$ 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).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of unredeemed gift card liability.
4 Addition of equity equivalents to stockholders’ equity.
5 Removal of accumulated other comprehensive income.
6 Subtraction of work in progress.
- Total Reported Debt & Leases
-
The total reported debt and leases exhibit a consistent upward trend over the examined periods. Starting from approximately 740 million US dollars in early 2020, the debt level increased steadily each year, reaching over 1.57 billion US dollars by early 2025. The most significant incremental growth appears between the years 2023 and 2024, where the debt increased by more than 330 million US dollars, indicating a possible expansion phase or increased financial leverage.
- Stockholders' Equity
-
Stockholders' equity also shows a steady and substantial growth throughout the periods. Beginning at roughly 1.95 billion US dollars in early 2020, equity rose consistently each year, culminating in approximately 4.32 billion US dollars by early 2025. The most pronounced growth in equity occurs between 2023 and 2024, with an increase of nearly 1.1 billion US dollars, suggesting enhanced retained earnings or additional equity financing.
- Invested Capital
-
Invested capital reflects a continuous growth trajectory over the analyzed time frame. From about 3.01 billion US dollars in early 2020, invested capital climbs steadily, reaching approximately 6.51 billion US dollars by early 2025. The largest annual increase is observed between 2023 and 2024, mirroring the substantial growth seen in both debt and equity in the same period. This pattern indicates increased overall capital investment, potentially for business expansion or asset acquisition.
- Overall Summary
-
The financial data collectively suggest that the company is in a phase of expansion, supported by increasing leverage and equity. Both liabilities and shareholders' funds have grown significantly, with invested capital nearly doubling over the five-year span. The pronounced increases between 2023 and 2024 across all key financial measures highlight a potentially strategic deployment of resources. This expansion could be reflective of investments aimed at enhancing the company's market position or operational capacity.
Cost of Capital
lululemon athletica inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Operating lease liability3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2025-02-02).
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Operating lease liability3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2024-01-28).
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Operating lease liability3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2023-01-29).
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Operating lease liability3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2022-01-30).
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Operating lease liability3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2021-01-31).
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Operating lease liability3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2020-02-02).
Economic Spread Ratio
lululemon athletica inc., economic spread ratio calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| Economic spread ratio3 | |||||||
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Nike Inc. | |||||||
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).
1 Economic profit. See details »
2 Invested capital. See details »
3 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Economic profit trend
- The economic profit shows significant fluctuations over the analyzed period. It started at 225,212 thousand US dollars in 2020, decreased considerably to 81,714 thousand US dollars in 2021, then sharply increased to 404,143 thousand US dollars in 2022. Following this peak, there was a decline in 2023 to 200,591 thousand US dollars. However, from 2023 onward, economic profit rose markedly, reaching 651,231 thousand US dollars in 2024 and further increasing to 882,631 thousand US dollars in 2025.
- Invested capital progression
- Invested capital exhibited a consistent upward trend throughout the periods. Beginning at 3,008,240 thousand US dollars in 2020, it steadily increased each year to 3,672,427 thousand in 2021, 3,909,051 thousand in 2022, 4,526,979 thousand in 2023, 5,978,501 thousand in 2024, and finally reaching 6,507,336 thousand US dollars in 2025. This represents a near doubling of invested capital over the span of six years.
- Economic spread ratio analysis
- The economic spread ratio, measuring the return relative to invested capital, demonstrated variability but an overall upward trajectory. It started at 7.49% in 2020, dropped to a low of 2.23% in 2021, then surged back to 10.34% in 2022. After a decrease to 4.43% in 2023, the ratio climbed significantly, reaching 10.89% in 2024 and peaking at 13.56% in 2025. The recovery and eventual strengthening of this ratio suggest improved profitability efficiency relative to capital invested in recent years.
Economic Profit Margin
lululemon athletica inc., economic profit margin calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | |||||||
| Net revenue | |||||||
| Add: Increase (decrease) in unredeemed gift card liability | |||||||
| Adjusted net revenue | |||||||
| Performance Ratio | |||||||
| Economic profit margin2 | |||||||
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Nike Inc. | |||||||
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).
1 Economic profit. See details »
2 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Economic Profit
- The economic profit experienced notable fluctuations over the periods. It began at 225,212 thousand US dollars in 2020, significantly declined to 81,714 thousand in 2021, then sharply increased to 404,143 thousand in 2022. Following this, it decreased again to 200,591 thousand in 2023. Subsequently, it showed pronounced growth in 2024 and 2025, reaching 651,231 thousand and 882,631 thousand US dollars respectively, indicating a strong upward trend in the most recent years.
- Adjusted Net Revenue
- Adjusted net revenue demonstrated a consistent and robust growth throughout the periods. Starting from 4,000,297 thousand US dollars in 2020, it steadily increased each year, reaching 4,437,314 thousand in 2021, 6,308,964 thousand in 2022, 8,153,801 thousand in 2023, and continuing to rise to 9,674,279 thousand in 2024 and 10,589,999 thousand in 2025. This reflects sustained revenue expansion over the six-year span.
- Economic Profit Margin
- The economic profit margin showed considerable variability alongside economic profit. Beginning at 5.63% in 2020, it dropped sharply to 1.84% in 2021, then rebounded to 6.41% in 2022. The margin decreased again to 2.46% in 2023. However, it increased significantly in the later years, reaching 6.73% in 2024 and peaking at 8.33% in 2025. This suggests an improvement in profitability relative to adjusted net revenue, particularly in the most recent reporting periods.