lululemon athletica inc. (NASDAQ:LULU)

Total Asset Turnover

The total asset turnover demonstrates a fluctuating but generally upward trend over the observed periods. Starting at 1.21 in early 2020, the ratio declined to a low of approximately 1.05 in early 2021 before rebounding to peak near 1.46 in January 2023. Subsequently, the turnover slightly decreased but stabilized around 1.36 to 1.40 in the last two periods. The adjusted total asset turnover closely mirrors this pattern, indicating consistent operational efficiency in asset utilization.

Current Ratio

The current ratio exhibits variability throughout the timeframe. Initially high at 2.91 in early 2020, the ratio declined steadily to 1.86 by early 2022, suggesting a tightening in short-term liquidity. Afterwards, the ratio improved again, reaching 2.49 in early 2024 before a slight decline to 2.16 by early 2025. The adjusted current ratio follows a similar trajectory but with consistently higher values, pointing to a potentially stronger liquidity position when adjustments are considered.

Debt to Equity and Debt to Capital

Both adjusted debt to equity and debt to capital ratios remained fairly stable over the periods presented. The adjusted debt to equity ratio started at 0.35, decreased to 0.29 in 2021 and 2022, then rose modestly to 0.33 by early 2025. A similar trend is visible in the adjusted debt to capital ratio, which decreased from 0.26 to 0.22-0.23 during 2021 and 2022, then increased slightly to 0.25 in 2025. This stability indicates controlled leverage with modest variation over time.

Financial Leverage

Financial leverage ratios display minor fluctuations throughout the periods. The reported financial leverage began at 1.68, dipped slightly to 1.64 in early 2021, ascended to 1.80 in early 2022, and then somewhat declined and stabilized between 1.68 and 1.78 through early 2025. The adjusted financial leverage shows a consistent but slightly lower range, reflecting a cautious but stable approach to financial structuring.

Net Profit Margin

The net profit margin reveals notable volatility. The reported margin started at a strong 16.22% in early 2020, dropped to 13.38% in 2021, improved to 15.59% in 2022, then fell significantly to 10.54% in 2023 before recovering sharply to 17.14% by 2025. The adjusted margin closely tracks these changes but with slightly higher values, confirming the variable profitability environment and the company’s ability to regain and sustain strong profit levels after downturns.

Return on Equity (ROE)

ROE demonstrates significant fluctuations with an overall upward tendency. Starting at approximately 33.07% in early 2020, it declined sharply to 23.02% in 2021, surged to a peak of 35.6% in 2022, then dropped again to 27.15% in 2023 before rising strongly to 41.97% by 2025. Adjusted ROE follows a similar pattern but with somewhat lower values, reflecting profitability relative to equity that has been resilient despite volatility.

Return on Assets (ROA)

ROA also shows variability but an overall improvement over time. It began near 19.67% in early 2020, decreased to 14.07% by 2021, rebounded to 19.73% in 2022, declined to 15.25% in 2023, and subsequently increased to 23.87% in 2025. The adjusted ROA tends to be slightly higher, supporting a view of improved asset efficiency and profitability in the latter years.

Net Revenue

Net revenue exhibited a consistent upward trajectory over the analyzed periods, rising from approximately $3.98 billion in February 2020 to nearly $10.59 billion by February 2025. This represents a significant increase, more than doubling over five years, indicating strong sales growth and expanding operations.

Total Assets

Total assets also showed a steady increase, growing from around $3.28 billion in 2020 to approximately $7.6 billion by 2025. This growth suggests continuous investment in assets, supporting the company's expanding activities.

Reported Total Asset Turnover

The reported total asset turnover ratio started at 1.21 in 2020, declined to 1.05 in 2021, and then increased progressively to 1.39 by 2025. This pattern indicates an initial reduction in asset efficiency followed by a recovery and improvement, suggesting better utilization of assets to generate revenue in the later years.

Adjusted Net Revenue

Adjusted net revenue followed a similar growth pattern as the reported net revenue, rising steadily from approximately $4.00 billion in 2020 to almost $10.59 billion by 2025. The close alignment with reported net revenue values implies minimal adjustments and corroborates the revenue growth trend.

Adjusted Total Assets

Adjusted total assets increased consistently from about $3.25 billion in 2020 to roughly $7.59 billion in 2025, mirroring the trend observed in reported total assets. This reinforces the view of sustained asset base growth over the period.

Adjusted Total Asset Turnover

The adjusted total asset turnover closely parallels the reported ratio, beginning at 1.23 in 2020, dipping to 1.06 in 2021, and then rising steadily to 1.40 by 2025. This indicates that, after a brief decline, the company improved its efficiency in generating revenue from assets.

Current Assets

The current assets show a consistent upward trend over the period from February 2020 to February 2025. Starting at approximately $1.81 billion in early 2020, current assets increased steadily each year, reaching a peak of around $4.06 billion in January 2024 before slightly decreasing to approximately $3.98 billion in February 2025. This overall growth indicates an expansion in liquid resources and short-term asset holdings available within the company.

Current Liabilities

Current liabilities also rose significantly during the same timeframe, starting at about $620 million in early 2020 and increasing steadily each year to reach approximately $1.84 billion by February 2025. This reflects an increased obligation in the short term, possibly linked to the growth in operations or increased short-term financing.

Reported Current Ratio

The reported current ratio exhibited variability over the analyzed periods. Initially high at 2.91 in February 2020, it declined to a low of 1.86 by January 2022, indicating a decreasing margin of coverage of current liabilities by current assets. Subsequently, it recovered to 2.49 in January 2024 but then lowered again to 2.16 by February 2025. Despite fluctuations, the ratio remained above 1.8 throughout, suggesting ongoing liquidity adequacy but with changing risk tolerance levels.

Adjusted Current Liabilities

Adjusted current liabilities followed a similar increasing pattern to the reported current liabilities but were consistently lower. Starting at $500 million in 2020, they rose steadily to about $1.53 billion in 2025. The adjustment appears to remove certain liabilities, resulting in a more conservative measure of obligations that have increased nonetheless over time in line with business growth.

Adjusted Current Ratio

The adjusted current ratio started at a strong 3.62 in February 2020 and declined to a trough of 2.18 in January 2022. Following this, the ratio improved to a peak of 3.07 in January 2024 before falling again to 2.6 by February 2025. These values indicate that, when considering adjusted liabilities, the company maintained a higher liquidity buffer compared to the reported ratio. The upward and downward movements suggest periodic shifts in asset and liability management but overall satisfactory short-term financial health.

The financial data reflects several notable trends in the capital structure over the analyzed periods.

Adjusted Total Debt

There is a consistent upward trend in adjusted total debt, increasing from approximately 740 million US dollars in early 2020 to about 1.58 billion US dollars by early 2025. This indicates a significant growth in the company's debt obligations over the five-year span.

Stockholders’ Equity and Adjusted Stockholders’ Equity

Stockholders’ equity shows a steady increase from approximately 1.95 billion US dollars in early 2020 to over 4.32 billion US dollars by early 2025. The adjusted stockholders' equity follows a similar trajectory, increasing from around 2.08 billion US dollars to approximately 4.71 billion US dollars during the same interval. This suggests an expanding equity base, reflecting growth in retained earnings or capital contributions.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio demonstrates a slight fluctuation throughout the years. Starting at 0.35 in early 2020, the ratio decreases to 0.29 in 2021 and 2022, indicating a reduced leverage relative to equity. Subsequently, it rises gradually to 0.33 by early 2025. Despite this increase, the overall ratio remains below the initial 2020 level, implying that equity growth has generally kept pace with or exceeded debt growth, maintaining a moderate leverage position.

Overall, the data suggest that while the company has increased its debt substantially, it has concurrently expanded its equity base, maintaining a relatively stable and moderate leverage ratio. The gradual rise in adjusted debt to equity ratio towards the end of the period may warrant monitoring to ensure the company’s financial risk remains within acceptable limits.

Total Capital

The total capital has shown a consistent upward trend over the analyzed periods, increasing from approximately 1.95 billion US dollars in early 2020 to about 4.32 billion US dollars by early 2025. This notable growth indicates an expansion of the company's capital base over the five-year horizon.

Adjusted Total Debt

The adjusted total debt also increased steadily, rising from around 740 million US dollars in early 2020 to approximately 1.58 billion US dollars in early 2025. This upward movement reflects an increased leverage or borrowing by the company during this time frame.

Adjusted Total Capital

The adjusted total capital figures mirror the growth pattern of both total capital and adjusted total debt, expanding from roughly 2.82 billion US dollars in 2020 to nearly 6.29 billion US dollars in 2025. This suggests overall growth in the company’s financial structure when considering the adjusted figures.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio has remained relatively stable across the periods, fluctuating slightly between 0.22 and 0.26. Starting at 0.26 in 2020, it decreased to 0.22 in 2021 and then stabilized around 0.24 to 0.25 in subsequent years. This stability indicates a consistent proportion of debt relative to capital in the company’s capital structure over time.

General Insights

Overall, the data suggest that the company increased both its capital base and debt exposure over the five-year span. Despite this increase in debt, the proportion of debt to capital has been maintained within a narrow range, reflecting a balanced approach to leveraging financial resources. The steady growth in capital indicates successful efforts in expanding the company's financial capacity.

Total assets

Total assets have demonstrated a consistent upward trajectory over the analyzed periods. Beginning at approximately 3.28 billion US dollars, the figure rose steadily each year, reaching about 7.6 billion US dollars by the latest reported period. This reflects significant growth in asset base, indicating expansion or increased investment.

Stockholders’ equity

Stockholders' equity also exhibited a strong increasing trend, starting from roughly 1.95 billion US dollars and growing to approximately 4.32 billion US dollars. The growth in equity appears to maintain a consistent pace, especially accelerating in the later periods, suggesting enhanced retained earnings or new equity injections contributing to the company’s net worth.

Reported financial leverage

The reported financial leverage ratio fluctuated moderately over the periods, initially at 1.68 and showing slight variations, peaking at 1.8 and later easing close to initial levels before rising again to 1.76. This pattern suggests some variability in the company’s use of debt relative to equity but remains within a relatively narrow range, indicating moderate leverage management.

Adjusted total assets

Adjusted total assets closely mirror the pattern observed in total assets, with values increasing from approximately 3.25 billion to around 7.59 billion US dollars. The slight differences from reported total assets could indicate adjustments for non-operational or one-time items, but overall the trend confirms consistent asset growth.

Adjusted stockholders’ equity

Adjusted stockholders' equity follows a similar increasing trend, rising from about 2.08 billion to 4.71 billion US dollars. The adjusted figures remain higher than the reported equity throughout, suggesting that the adjustments possibly account for items like accumulated other comprehensive income or other equity components not reflected in the reported figures.

Adjusted financial leverage

Adjusted financial leverage shows a pattern akin to reported leverage but exhibits a slightly lower ratio across all periods, starting at 1.56 and ending at 1.61. The ratios dip and rise slightly but generally indicate stable leverage levels, which may reflect a more conservative measure of financial leverage after adjustments.

Net Income

The net income exhibits a fluctuating but overall increasing trend from 2020 to 2025. Starting at $645.6 million in 2020, it declined to $588.9 million in 2021, recovered sharply to $975.3 million in 2022, and then decreased to $854.8 million in 2023. Subsequently, there was a significant increase with net income reaching $1.55 billion in 2024 and further rising to $1.81 billion in 2025.

Net Revenue

Net revenue demonstrates a consistent upward trajectory throughout the period. It increased from approximately $3.98 billion in 2020 to $4.40 billion in 2021, followed by substantial growth to $6.26 billion in 2022 and $8.11 billion in 2023. This positive trend continued with revenues reaching nearly $9.62 billion in 2024 and surpassing $10.58 billion in 2025, indicating strong top-line growth.

Reported Net Profit Margin

The reported net profit margin shows variability, initially declining from 16.22% in 2020 to 13.38% in 2021. It then improved to 15.59% in 2022 before falling significantly to 10.54% in 2023. Recovery was observed in the subsequent years with margins rising to 16.12% in 2024 and further increasing to 17.14% in 2025, reflecting enhanced profitability relative to revenue in the most recent periods.

Adjusted Net Income

Adjusted net income trends are similar to reported net income but generally higher in value, indicating adjustments positive to earnings. The adjusted values increased from $683.2 million in 2020 to $705.9 million in 2021, then sharply rose to $1.00 billion in 2022. A slight decline occurred in 2023 to $850.8 million, followed by strong growth to $1.57 billion in 2024 and $1.71 billion in 2025.

Adjusted Net Revenue

Adjusted net revenue closely parallels reported net revenue with minor differences, increasing steadily across all years. From $4.00 billion in 2020, it advanced to $4.44 billion in 2021 and continued growing to $6.31 billion in 2022 and $8.15 billion in 2023. The upward movement persisted with $9.67 billion in 2024 and $10.59 billion in 2025.

Adjusted Net Profit Margin

The adjusted net profit margin follows a similar pattern to the reported margin, declining from 17.08% in 2020 to 15.91% in 2021 and remaining relatively stable at 15.88% in 2022. A notable decrease to 10.43% occurred in 2023, after which margins rebounded to 16.20% in 2024 and slightly decreased to 16.19% in 2025, reflecting a restoration of profitability when excluding certain adjustments.

The analysis of the financial data reveals several key trends related to profitability and equity over the observed periods.

Net Income

Net income exhibits fluctuations with an initial value of approximately $646 million in early 2020, followed by a slight decline in 2021 to about $589 million. It then rises sharply in 2022 to nearly $975 million, decreases somewhat in 2023 to around $855 million, and subsequently grows substantially in 2024 and 2025, reaching over $1.55 billion and $1.81 billion respectively. This overall upward trend in the most recent years indicates improving profitability.

Stockholders’ Equity

Stockholders’ equity shows continuous growth throughout the periods, increasing steadily from approximately $1.95 billion in 2020 to about $4.32 billion in 2025. This consistent rise suggests strengthening capital base and retained earnings accumulation over time.

Reported Return on Equity (ROE)

The reported ROE percentages display variability, starting at 33.07% in 2020, dropping to 23.02% in 2021, then climbing to 35.60% in 2022. A subsequent decline to 27.15% occurs in 2023, followed by notable increases in 2024 and 2025, reaching 36.63% and 41.97% respectively. Despite fluctuations, the latter two years reflect enhanced efficiency in generating profits from equity.

Adjusted Net Income

Adjusted net income aligns closely with reported net income but consistently presents higher values, starting at about $683 million in 2020 and following a similar pattern of growth and decline before ascending sharply in 2024 and 2025. The increase to roughly $1.57 billion and $1.71 billion in these years confirms improving core profitability after adjustments.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increases steadily from approximately $2.08 billion in 2020 to about $4.71 billion in 2025. The adjusted equity figures consistently surpass the reported equity values, reflecting a more comprehensive valuation basis and indicating robust equity growth.

Adjusted Return on Equity (ROE)

Adjusted ROE exhibits a pattern similar to reported ROE, beginning at 32.77% in 2020, decreasing to 25.52% in 2021, rising to 33.45% in 2022, declining again to 24.67% in 2023, and then increasing to 34.37% and 36.38% in 2024 and 2025 respectively. This trend suggests that the profitability relative to adjusted equity has been recovering and improving in the later periods.

In summary, the company demonstrates a strengthening equity position alongside fluctuating but generally improving profitability metrics. Both reported and adjusted return on equity figures point to enhanced efficiency in capital utilization in the most recent years, supported by significant growth in net income and equity base. These trends indicate positive financial momentum and suggest effective management of resources over the analyzed span.

Net Income

The net income exhibits a fluctuating yet overall upward trend over the observed periods. There was a decline from 645,596 thousand USD in February 2020 to 588,913 thousand USD in January 2021. This was followed by a significant increase to 975,322 thousand USD in January 2022. A slight decrease occurred again in January 2023 to 854,800 thousand USD, after which net income rose sharply to 1,550,190 thousand USD in January 2024 and further to 1,814,616 thousand USD in February 2025, indicating strong profitability growth in the latter periods.

Total Assets

Total assets consistently increased throughout the entire period, starting at 3,281,354 thousand USD in February 2020 and reaching 7,603,292 thousand USD by February 2025. The growth appears steady, with each year showing an increase, suggesting an expansion of asset base and possibly investment or acquisition activity.

Reported Return on Assets (ROA)

The reported ROA showed considerable variability. It dropped from 19.67% in February 2020 to 14.07% in January 2021, surged back to 19.73% in January 2022, then declined again to 15.25% in January 2023. However, a notable improvement occurred in the last two periods, reaching 21.86% in January 2024 and increasing further to 23.87% in February 2025. This pattern suggests fluctuating efficiency in asset utilization with a strong recovery and improvement in the final reporting periods.

Adjusted Net Income

The adjusted net income follows a similar pattern to reported net income but with smoother transitions and higher values in most periods. It increased from 683,218 thousand USD in February 2020 to 705,899 thousand USD in January 2021, rose significantly to 1,002,040 thousand USD in January 2022, then decreased slightly to 850,816 thousand USD in January 2023. Subsequently, it increased sharply to 1,566,772 thousand USD in January 2024 and slightly decreased to 1,714,683 thousand USD in February 2025. This indicates that after adjusting for certain factors, profitability still demonstrates robust growth with a temporary dip in the middle years.

Adjusted Total Assets

Adjusted total assets closely mirror the reported total assets in trend and magnitude, starting at 3,249,919 thousand USD in February 2020 and increasing steadily to 7,586,207 thousand USD by February 2025. The consistency in the asset base growth after adjustment supports the notion of asset expansion and growing resource availability over time.

Adjusted Return on Assets (ROA)

The adjusted ROA follows a trend similar to the reported ROA, showing declines and rises over the periods observed. It declined from 21.02% in February 2020 to 16.89% in January 2021, increased to 20.3% in January 2022, then decreased again to 15.19% in January 2023. This was followed by a sharp increase to 22.12% in January 2024 and a slight decrease to 22.6% in February 2025. The adjusted ROA indicates fluctuations in asset efficiency but reveals an overall improvement in the last two years analyzed, reflecting enhanced operational performance when adjustments are considered.