Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
lululemon athletica inc., liquidity ratios
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Current ratio | |||||||
| Quick ratio | |||||||
| Cash ratio |
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).
- Current Ratio
- The current ratio exhibits a declining trend from 2.91 in early 2020 to a low of 1.86 by early 2022, indicating a reduction in short-term liquidity over this period. However, from 2022 to 2024, there is a recovery as the ratio increased to 2.49, suggesting an improvement in the ability to cover current liabilities with current assets. The ratio slightly decreases again to 2.16 by early 2025, but it remains above the level observed in 2022.
- Quick Ratio
- The quick ratio shows a consistent downward trend from 1.83 in 2020 to a trough of 0.86 in 2023, reflecting a diminution in the most liquid assets relative to current liabilities over these years. A marked recovery is observed in 2024 when the ratio rises sharply to 1.45, indicating an enhanced immediate liquidity position, though it decreases again to 1.14 in early 2025. Despite this decline, it remains higher than the lowest point in 2023.
- Cash Ratio
- The cash ratio declines steadily from 1.76 in 2020 through 0.77 in 2023, signifying a reduction in cash and cash equivalents available to meet current liabilities. A substantial rebound occurs in 2024, with the ratio increasing to 1.38, followed by a decrease to 1.08 in 2025. Despite fluctuations, the cash ratio at the end of the period remains considerably below the initial value in 2020, indicating a more conservative cash position overall compared to the start of the observed timeframe.
Current Ratio
lululemon athletica inc., current 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) | |||||||
| Current assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Current ratio1 | |||||||
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Nike Inc. | |||||||
| Current Ratio, Sector | |||||||
| Consumer Durables & Apparel | |||||||
| Current Ratio, Industry | |||||||
| Consumer Discretionary | |||||||
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 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current assets
- The current assets demonstrated a consistent upward trend from 1,807,938 thousand USD in February 2020 to a peak of 4,060,577 thousand USD in January 2024. However, in February 2025, current assets slightly decreased to 3,980,302 thousand USD, indicating a marginal contraction but maintaining a significantly higher level compared to earlier years.
- Current liabilities
- Current liabilities showed a steady increase over the entire period analyzed. Beginning at 620,418 thousand USD in February 2020, liabilities more than doubled by January 2024, reaching 1,631,261 thousand USD, and further increased to 1,839,630 thousand USD by February 2025. This upward trajectory indicates growing short-term financial obligations.
- Current ratio
- The current ratio declined from a strong position of 2.91 in February 2020 to its lowest point of 1.86 in January 2022, suggesting a reduction in short-term liquidity. After this trough, the ratio recovered, reaching 2.49 in January 2024 which reflects improved liquidity, before declining slightly to 2.16 in February 2025. Despite fluctuations, the current ratio remained above 1.8 throughout the period from January 2022 onward, indicating an adequate ability to meet short-term liabilities.
Quick Ratio
lululemon athletica inc., quick 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) | |||||||
| Cash and cash equivalents | |||||||
| Accounts receivable, net | |||||||
| Total quick assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Quick ratio1 | |||||||
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Nike Inc. | |||||||
| Quick Ratio, Sector | |||||||
| Consumer Durables & Apparel | |||||||
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | |||||||
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 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets displayed an overall increasing trend from 1,133,724 thousand US dollars in early 2020 to a peak of 2,368,740 thousand US dollars at the beginning of 2024. However, there was a decline noted in early 2025 to 2,104,509 thousand US dollars, reflecting a reduction in liquid and near-liquid assets after the prior peak.
- Current liabilities
- Current liabilities exhibited a consistent upward trajectory over the analyzed periods, rising from 620,418 thousand US dollars in early 2020 to 1,839,630 thousand US dollars by early 2025. This steady increase indicates higher short-term obligations over time.
- Quick ratio
- The quick ratio began at a healthy 1.83 in early 2020, suggesting strong short-term liquidity relative to current liabilities. It then declined sharply to 0.86 by early 2023, indicating a period during which quick assets were insufficient to cover current liabilities. Subsequently, the ratio recovered to 1.45 in early 2024, before decreasing again to 1.14 in early 2025. This pattern implies fluctuations in the company’s liquidity management, with periods of tighter short-term financial flexibility followed by improvement and then a moderate decline.
- Summary insights
- The data reflects dynamic changes in liquid assets and obligations. The persistent rise in current liabilities stresses growing short-term financing needs or operational costs. Despite this, the total quick assets generally increased, although not always proportionally to liabilities. The sharp dip and subsequent partial recovery in the quick ratio highlight periods of liquidity pressure followed by strengthening, though the ratio remaining close to or slightly above 1.0 in recent years signals cautious liquidity management without significant surplus cover.
Cash Ratio
lululemon athletica inc., cash 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) | |||||||
| Cash and cash equivalents | |||||||
| Total cash assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Cash ratio1 | |||||||
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Nike Inc. | |||||||
| Cash Ratio, Sector | |||||||
| Consumer Durables & Apparel | |||||||
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | |||||||
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 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets demonstrated a generally increasing trend over the analyzed periods. Beginning at approximately 1.09 billion US dollars in early 2020, the cash assets grew steadily to reach about 1.26 billion by early 2022. Though a slight decline was observed in early 2023 to approximately 1.15 billion, a significant increase followed by early 2024, surpassing 2.24 billion. There was a modest decrease in early 2025 to around 1.98 billion. Overall, cash assets more than doubled from 2020 to 2025, with a peak occurring in 2024.
- Current liabilities
- Current liabilities showed a consistent upward trajectory across the periods. Starting at roughly 620 million US dollars in early 2020, liabilities increased markedly each year, more than doubling by early 2022 to approximately 1.41 billion. This growth continued, reaching approximately 1.49 billion in early 2023 and further climbing to about 1.84 billion by early 2025. This steady increase indicates growing short-term obligations over the five-year span.
- Cash ratio
- The cash ratio exhibited considerable fluctuation during the observed timeframe. Initially strong at 1.76 in early 2020, it declined steadily to a low point of 0.77 by early 2023, reflecting a reduction in cash assets relative to current liabilities. However, the ratio recovered to 1.38 by early 2024 before declining again to 1.08 in early 2025. These variations suggest periods of tighter liquidity management alternating with stronger cash coverage of current liabilities.
- Summary of liquidity trends
- While total cash assets increased substantially over the period, the faster growth in current liabilities led to a reduction in cash ratio until 2023, indicating potentially increased liquidity risk during those years. The subsequent recovery in the cash ratio in 2024 implies an improvement in liquidity position, though not maintained at the initial high levels. The data reflects active management of cash relative to liabilities with fluctuations that may be related to changing operational or investment activities.