Economic Value Added (EVA)
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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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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Long-term (Investment) Activity Ratios
- Price to FCFE (P/FCFE)
- Operating Profit Margin since 2008
- Return on Equity (ROE) since 2008
- Current Ratio since 2008
- Price to Book Value (P/BV) since 2008
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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 displays a generally upward trajectory over the observed period. Initial figures show a slight decrease from 711,860 thousand USD in early 2020 to 680,052 thousand USD in early 2021. Subsequently, there is a notable increase reaching 1,040,291 thousand USD in early 2022, followed by a dip to 933,695 thousand USD in early 2023. The trend then shifts upwards markedly to 1,622,788 thousand USD in early 2024 and continues increasing to 1,928,398 thousand USD by early 2025. This indicates an overall positive growth in net operating profit after taxes despite minor fluctuations.
- Cost of Capital
- The cost of capital metric remains relatively stable throughout the period, fluctuating narrowly between 16.26% and 16.48%. This stability suggests a consistent cost structure in capital financing without significant volatility, supporting financial predictability in investment decisions.
- Invested Capital
- There is a clear and consistent upward trend in invested capital over the six-year period. Starting at 3,008,240 thousand USD in early 2020, invested capital increases steadily each year, reaching 6,507,336 thousand USD in early 2025. This reflects ongoing investment and expansion in the company's asset base, nearly doubling over the period, which may be associated with efforts to drive growth and enhance operational capacity.
- Economic Profit
- Economic profit exhibits variability but maintains an overall increasing trend. Beginning at 219,501 thousand USD in early 2020, the figure declines sharply to 74,679 thousand USD in early 2021. This is followed by a recovery to 396,660 thousand USD in early 2022, then another decline to 191,979 thousand USD in early 2023. After this, economic profit substantially increases, reaching 639,823 thousand USD in early 2024 and further elevating to 870,393 thousand USD by early 2025. The fluctuations suggest periods of varying efficiency in capital utilization, with recent years showing improved value creation exceeding the cost of capital.
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
- The economic profit demonstrates considerable fluctuations over the analyzed periods. Initially, it decreases significantly from 219,501 thousand US dollars in early 2020 to 74,679 thousand in early 2021. Subsequently, there is a strong recovery in 2022, reaching 396,660 thousand, before experiencing a downturn in 2023 to 191,979 thousand. From 2023 onward, a pronounced upward trend is observed, with economic profit increasing sharply to 639,823 thousand in 2024 and further rising to 870,393 thousand in 2025, indicating enhanced profitability and value creation during this latest period.
- Invested Capital
- Invested capital shows a steady and consistent growth throughout the timeframe. Starting from 3,008,240 thousand US dollars in 2020, it rises annually, reaching 3,672,427 thousand in 2021, 3,909,051 thousand in 2022, 4,526,979 thousand in 2023, and sharply increasing to 5,978,501 thousand in 2024, followed by a further increase to 6,507,336 thousand in 2025. This trend reflects ongoing investment and expansion in the company's asset base.
- Economic Spread Ratio
- The economic spread ratio reflects the company's ability to generate returns above its cost of capital. The ratio declines markedly from 7.3% in 2020 to 2.03% in 2021, suggesting diminished efficiency in value generation during this period. However, it rebounds strongly to 10.15% in 2022, declines again to 4.24% in 2023, and then climbs consistently to 10.7% in 2024 and further to 13.38% in 2025. These fluctuations indicate variability in profitability relative to capital costs, with a general improving trend in the latter years.
- Overall Analysis
- The data reveals a pattern of volatility in economic profit and economic spread ratio, coupled with steady growth in invested capital. Despite the fluctuations in profitability metrics, the significant increase in both economic profit and economic spread ratio in the final two periods indicates improved operational performance and more efficient capital utilization. The consistent rise in invested capital suggests ongoing strategic investments aimed at growth, which may underpin the recent improvements in economic value creation.
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 significant fluctuations over the periods analyzed. Initially, it showed a strong value at 219,501 thousand US dollars in early 2020, then decreased substantially to 74,679 thousand US dollars in early 2021. Subsequently, it recovered sharply to 396,660 thousand US dollars by early 2022, followed by a decline in early 2023 to 191,979 thousand US dollars. A notable growth trend emerged from 2023 onward, with economic profit reaching 639,823 thousand US dollars in early 2024 and further increasing to 870,393 thousand US dollars in early 2025.
- Adjusted Net Revenue
- The adjusted net revenue demonstrated consistent and strong growth throughout the entire period. It started at approximately 4,000 million US dollars in early 2020 and increased steadily each year, reaching about 4,437 million in early 2021, 6,309 million in early 2022, 8,153 million in early 2023, 9,674 million in early 2024, and ultimately 10,589 million US dollars by early 2025. This indicates positive momentum in top-line performance.
- Economic Profit Margin
- The economic profit margin showed considerable variability and was clearly influenced by shifts in economic profit relative to revenue. Starting at 5.49% in early 2020, it fell sharply to 1.68% in early 2021. A recovery followed with a margin of 6.29% in early 2022, though this was again followed by a decline to 2.35% in early 2023. From 2023 onward, the economic profit margin improved significantly, rising to 6.61% in early 2024 and further to 8.22% in early 2025. This suggests an improving ability to generate profit relative to revenue in the most recent years.
- Summary Insights
- The data illustrates a dynamic financial performance with periods of volatility in economic profit and its margin, contrasted by a steady and robust increase in adjusted net revenue. The periods of decline in economic profit and margin coincide with earlier years but are followed by substantial rebounds from 2022 forward. Most recently, the company has demonstrated strong growth in both profit and profitability ratios, indicating improved operational efficiency or margin expansion while continuing to grow revenue.