Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
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Return on Invested Capital (ROIC)
lululemon athletica inc., ROIC 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) | |||||||
| Net operating profit after taxes (NOPAT)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| ROIC3 | |||||||
| Benchmarks | |||||||
| ROIC, 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 NOPAT. See details »
2 Invested capital. See details »
3 2025 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit After Taxes (NOPAT)
- The NOPAT shows a fluctuating yet generally upward trend over the observed periods. It initially decreased from 711,860 thousand USD in 2020 to 680,052 thousand USD in 2021. Subsequently, it rebounded sharply to 1,040,291 thousand USD in 2022, followed by a slight decline to 933,695 thousand USD in 2023. From 2023 onwards, there is a pronounced increase, reaching 1,622,788 thousand USD in 2024 and further rising to 1,928,398 thousand USD in 2025. This pattern suggests the company experienced some volatility but has secured strong growth in operating profitability in the most recent years.
- Invested Capital
- Invested capital consistently increased throughout the period analyzed. Starting at 3,008,240 thousand USD in 2020, it shows steady growth each year, reaching 3,672,427 thousand USD in 2021, 3,909,051 thousand USD in 2022, and 4,526,979 thousand USD in 2023. The growth accelerates in 2024 and 2025, with invested capital rising to 5,978,501 thousand USD and 6,507,336 thousand USD respectively. This upward trend indicates a continual increase in the company’s capital base, which may reflect expansion, reinvestment strategies, or asset accumulation over time.
- Return on Invested Capital (ROIC)
- The ROIC exhibits variability but remains at a relatively high level throughout. After a decline from 23.66% in 2020 to 18.52% in 2021, ROIC rose markedly to 26.61% in 2022. It decreased again in 2023 to 20.63%, but then demonstrated strong recovery and improvement in 2024 and 2025, reaching 27.14% and 29.63%, respectively. The general pattern indicates effective capital utilization with periods of enhanced efficiency, particularly in the most recent years, reflecting an ability to generate increasing returns on the invested capital base.
Decomposition of ROIC
lululemon athletica inc., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Feb 2, 2025 | = | × | × | ||||
| Jan 28, 2024 | = | × | × | ||||
| Jan 29, 2023 | = | × | × | ||||
| Jan 30, 2022 | = | × | × | ||||
| Jan 31, 2021 | = | × | × | ||||
| Feb 2, 2020 | = | × | × |
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 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
- Operating Profit Margin (OPM)
- The operating profit margin exhibited fluctuations over the analyzed periods. Beginning at 23.62% in early 2020, it declined to 19.88% in 2021, then recovered to 22.36% in 2022. A notable dip occurred in 2023, reaching 17.28%, followed by a resurgence to 23.64% in 2024 and further improvement to 24.98% in 2025. This pattern indicates variability in operational efficiency, with a recent trend towards strengthening margins.
- Turnover of Capital (TO)
- The turnover of capital showed an overall upward trend despite some fluctuations. Starting at 1.33 in 2020, it decreased slightly to 1.21 in 2021 but subsequently increased to 1.61 in 2022 and peaked at 1.80 in 2023. In the last two periods, the ratio modestly stabilized around 1.62 to 1.63. This implies an improvement in asset utilization efficiency over the medium term, with a plateau in recent periods.
- Effective Cash Tax Rate (CTR), represented as 1 - CTR
- The measure representing one minus the effective cash tax rate declined overall from 75.34% in 2020 to a low of 66.26% in 2023, indicating an increase in the effective tax burden over those years. The value slightly recovered to 70.96% in 2024 and further to 72.89% in 2025, suggesting a partial reduction in effective tax expenses in the most recent periods.
- Return on Invested Capital (ROIC)
- The return on invested capital demonstrated variability with an upward trajectory. The value started at 23.66% in 2020, declined to 18.52% in 2021, then increased substantially to 26.61% in 2022. A decrease to 20.63% occurred in 2023, but the return rebounded strongly in 2024 and 2025, reaching 27.14% and 29.63% respectively. This reflects an overall strengthening in capital productivity and profitability.
Operating Profit Margin (OPM)
lululemon athletica inc., OPM 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) | |||||||
| Net operating profit after taxes (NOPAT)1 | |||||||
| Add: Cash operating taxes2 | |||||||
| Net operating profit before taxes (NOPBT) | |||||||
| Net revenue | |||||||
| Add: Increase (decrease) in unredeemed gift card liability | |||||||
| Adjusted net revenue | |||||||
| Profitability Ratio | |||||||
| OPM3 | |||||||
| Benchmarks | |||||||
| OPM, 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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
OPM = 100 × NOPBT ÷ Adjusted net revenue
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit Before Taxes (NOPBT)
-
The net operating profit before taxes shows a generally increasing trend over the observed periods. Starting at 944,811 thousand US dollars in early 2020, there is a slight decrease in 2021 to 882,100 thousand, followed by a significant rise in 2022 and 2023, reaching 1,410,885 thousand and 1,409,034 thousand, respectively. The upward momentum continues more robustly in 2024 with 2,286,867 thousand and further increases to 2,645,709 thousand in 2025.
- Adjusted Net Revenue
-
The adjusted net revenue presents a consistent and substantial growth over the six-year period. Beginning at 4,000,297 thousand US dollars in 2020, the revenue steadily climbs each year, surpassing 4.4 million in 2021 and escalating to over 6.3 million in 2022. This upward trajectory accelerates further with 8.15 million in 2023, nearly 9.67 million in 2024, and reaching almost 10.6 million US dollars in 2025. This sustained increase reflects a strong expansion in sales or other revenue-generating activities.
- Operating Profit Margin (OPM)
-
The operating profit margin exhibits some variability throughout the reported periods. Initially, it is relatively high at 23.62% in 2020, then it declines to 19.88% in 2021. There is a partial recovery to 22.36% in 2022, but a notable drop occurs again in 2023, reaching the lowest point of 17.28%. Subsequently, margins improve significantly in the last two years, rising to 23.64% in 2024 and further increasing to 24.98% in 2025, which surpasses the initial margin observed at the start of the period.
- Overall Insights
-
The data indicates robust growth in both adjusted net revenue and net operating profit before taxes, signaling effective scale expansion and operational efficiency improvements over time. Despite fluctuations in the operating profit margin, the trend towards recovery and ultimate improvement in margin percentage towards the end of the period suggests strengthened profitability management. The combination of revenue growth and an improving margin underlines a positive trajectory in the overall financial health.
Turnover of Capital (TO)
lululemon athletica inc., TO 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) | |||||||
| Net revenue | |||||||
| Add: Increase (decrease) in unredeemed gift card liability | |||||||
| Adjusted net revenue | |||||||
| Invested capital1 | |||||||
| Efficiency Ratio | |||||||
| TO2 | |||||||
| Benchmarks | |||||||
| TO, 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 Invested capital. See details »
2 2025 Calculation
TO = Adjusted net revenue ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
- Adjusted Net Revenue
- The adjusted net revenue has shown a consistent upward trajectory over the observed periods, advancing from approximately $4.0 billion in early 2020 to nearly $10.6 billion in early 2025. This demonstrates a strong growth trend with substantial increases year-over-year, particularly noticeable between 2021 and 2024, where the revenue nearly doubled. The growth rate appears to be slightly moderating in the latest year, but the overall increase remains significant.
- Invested Capital
- Invested capital also exhibits a rising trend, starting from around $3.0 billion in 2020 and increasing steadily to about $6.5 billion by 2025. The increments reflect a steady allocation of resources, with notable larger increases in the years following 2022. This suggests ongoing investment in the company's operational base and fixed assets, supporting its revenue growth.
- Turnover of Capital (TO)
- The turnover of capital ratio has fluctuated throughout the timeframe. Starting at 1.33 in 2020, it decreased slightly to 1.21 in 2021 before climbing to a peak of 1.80 in 2023. After this peak, the ratio declined slightly but remained relatively stable at approximately 1.62 to 1.63 in 2024 and 2025. These variations imply that the efficiency of utilizing invested capital to generate revenue has improved since the low in 2021, with a peak efficiency observed in 2023 and sustained performance thereafter.
- Overall Trends and Insights
- The data indicate robust growth in both revenue and invested capital, reflecting an expanding business operation. The increasing invested capital might be driving the growth in revenue, as well as improving capital turnover ratios after 2021. The fluctuation in turnover of capital suggests periods of varying operational efficiency, but the sustained levels post-2023 indicate a stable and efficient use of capital relative to revenue generation.
Effective Cash Tax Rate (CTR)
lululemon athletica inc., CTR calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | |||||||
| Add: Cash operating taxes2 | |||||||
| Net operating profit before taxes (NOPBT) | |||||||
| Tax Rate | |||||||
| CTR3 | |||||||
| Benchmarks | |||||||
| CTR, 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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
- Cash Operating Taxes
- The cash operating taxes exhibit a consistent upward trend over the period analyzed. Starting at $232,950 thousand in early 2020, the values increased steadily each year, reaching $717,311 thousand by early 2025. This represents a more than threefold increase in cash taxes paid, indicating a rising tax expense likely correlated with increased profitability.
- Net Operating Profit Before Taxes (NOPBT)
- Net operating profit before taxes shows overall growth with some variability. From $944,811 thousand in early 2020, it slightly declined to $882,100 thousand in early 2021, then increased significantly to approximately $1.41 billion by early 2023. A substantial jump follows in 2024 and 2025, reaching over $2.6 billion. This indicates strong operational performance improvement, especially in the latter years, suggesting effective revenue growth or cost management strategies.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate fluctuates somewhat irregularly during the timeframe. Initially, it decreased from 24.66% in 2020 to 22.91% in 2021, then rose to peak at 33.74% in 2023. After this peak, it declined again to 27.11% by 2025. The variability indicates changing tax planning outcomes or differences in taxable income composition year over year, despite the underlying growth in profits and tax payments.