lululemon athletica inc. (NASDAQ:LULU)

Debt to Equity (Including Operating Lease Liability)

The debt to equity ratio shows an initial declining trend from 0.43 to approximately 0.30 between May 2020 and May 2021, indicating a reduction in leverage relative to equity. From mid-2021 onwards, the ratio stabilizes around 0.33 to 0.34, with slight fluctuations observed in late 2023 and 2024, reaching a high of 0.40 in mid-2025. The overall trend suggests a relatively stable leverage position with modest increases toward the most recent periods.

Debt to Capital (Including Operating Lease Liability)

This ratio declines steadily from 0.30 in May 2020 to about 0.23 by mid-2021, showing a decrease in total debt relative to total capital. Following this period, the ratio remains relatively stable between 0.24 and 0.25 through early 2023. From late 2023 through mid-2025, a gradual increase is apparent, with the ratio rising towards 0.29. This indicates a slight increase in reliance on debt financing within total capital structure in recent quarters.

Debt to Assets (Including Operating Lease Liability)

A consistent downward trend occurs from 0.24 in May 2020 to 0.18 by mid-2021, reflecting reduced debt usage relative to total assets. Thereafter, the ratio oscillates narrowly around 0.19 to 0.20 through early 2023. A moderate uptrend can be observed from mid-2023 forward, with values approaching 0.23 by mid-2025, suggesting a mild increase in debt burden relative to assets over the latest periods.

Financial Leverage

The financial leverage ratio begins just below 1.75 in mid-2020, demonstrating a slight initial decrease to approximately 1.64 by early 2021. This is followed by a modest rise toward 1.80 in early 2022. Over the subsequent quarters through mid-2023, the ratio oscillates between 1.68 and 1.78, indicating stable leverage with periodic fluctuations. From late 2023 onwards, values generally trend downward to near 1.71 by mid-2025, denoting a moderate reduction in leverage relative to equity in the most recent periods.

Stockholders’ Equity Trend

The stockholders’ equity exhibits a general upward trajectory over the periods analyzed. Starting at approximately 1.84 billion USD, it increased steadily to reach over 4.38 billion USD by the last reported period. The growth shows a consistent pattern with occasional minor fluctuations in intermediate quarters. Notably, from early 2023 to early 2024, there is a marked rise, reaching a peak exceeding 4.23 billion USD, followed by some moderate variations thereafter toward the end of the timespan.

Total Debt and Debt to Equity

Both total debt and debt to equity ratio data are absent for all periods. Therefore, it is not possible to analyze leverage trends or infer associated financial risk or capital structure changes during this timeframe.

Overall Observations

The increasing stockholders’ equity suggests strengthening of the company’s net asset base or retained earnings over time. This positive equity trend likely reflects profitable operations, capital injections, or revaluation outcomes that enhance shareholder value. However, the lack of debt information limits a comprehensive assessment of financial leverage or solvency conditions.

Total Debt (including operating lease liability)

The total debt exhibited modest fluctuations in the earlier periods with values around the 780 million to 860 million US dollar range through 2020 and 2021. Starting in early 2022, debt extended more noticeably, increasing from approximately 900 million US dollars to over 1.1 billion by late 2023. This upward trajectory continued into 2024 and 2025, reaching near 1.76 billion US dollars by mid-2025. The trend reflects a steady accumulation of debt over time, particularly intensifying from 2022 onwards.

Stockholders’ Equity

Stockholders’ equity demonstrated a consistent growth trajectory across the entire period analyzed. Beginning at around 1.8 billion US dollars in mid-2020, it increased steadily throughout 2020 and 2021, surpassing 2.6 billion by mid-2021 and continuing an upward trend to approximately 3.5 billion by late 2023. In 2024, equity reached over 4 billion US dollars, with a slight dip observed in mid-2024 before rising again towards 4.4 billion by mid-2025. This pattern indicates strong equity growth, suggesting retained earnings or capital inflows supporting expansion or business strength.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio decreased steadily from 0.43 in May 2020 to around 0.30 by mid-2021, indicating a relative reduction in leverage during this period. From late 2021 through 2023, the ratio stabilized in the low 0.30s, ranging between 0.33 and 0.34, despite the increasing absolute debt level. Starting in 2024, the ratio began a gradual increase reaching 0.40 by mid-2025. This rise indicates that debt growth is outpacing equity growth during this latter period, suggesting a slight increase in financial leverage.

Summary of Trends and Insights

Overall, the company has demonstrated a pattern of increasing total debt and stockholders' equity over the measured periods, with equity consistently growing at a strong pace. The debt to equity ratio initially improved as equity growth outpaced debt accumulation but started to rise again from 2024, indicating a shift toward higher leverage. The sustained growth in equity is a positive indicator of the company's financial strength, while the escalated borrowing from 2022 and beyond could be associated with financing growth initiatives, investments, or operational needs. Maintaining a debt to equity ratio near 0.4 suggests the company is leveraging financial resources prudently but with growing reliance on debt financing in recent periods.

The financial data indicates incomplete reporting for total debt and debt to capital ratio, with values missing across all presented periods. Consequently, analysis related to the company's leverage and capital structure cannot be performed accurately based on this data.

Regarding total capital, the data presents a clear upward trend over the given timeline spanning from May 2020 to August 2025. Starting at approximately US$1.84 billion in May 2020, the total capital consistently increased, reaching over US$4.38 billion by August 2025. This growth reflects a significant expansion in the company's capital base over the five-year period.

The total capital figures display steady increments with occasional larger jumps, notably around early 2024 and mid-2025. These increases may indicate capital raises, asset revaluations, or retained earnings accumulation, contributing to the overall strengthened capital position.

Due to the absence of data on total debt, it is not possible to assess the company's financing mix or evaluate financial risk through the debt-to-capital ratio. This gap limits the ability to fully understand the company’s capital structure dynamics and leverage trends.

Total Capital

Demonstrates a consistent upward trend from US$1.83 billion to US$4.38 billion over five years, indicating growth in the company’s capital base.

Total Debt and Debt to Capital Ratio

Data not reported; hence, analysis of leverage and financial risk is not feasible.

Total Debt (including operating lease liability)

The total debt has demonstrated a general upward trend over the analyzed period. Beginning around 784 million USD, the debt amount showed moderate fluctuations and a steady increase, particularly noticeable from early 2022 onward. By mid-2025, the total debt reached approximately 1.76 billion USD, indicating a significant increase in leverage or financing needs over the timeframe.

Total Capital (including operating lease liability)

Total capital expanded considerably within the same period. Starting at roughly 2.62 billion USD, the capital base grew gradually until early 2022, followed by a more pronounced rise, peaking at about 5.64 billion USD in early 2025. However, some temporary fluctuations occurred, especially around 2024 when total capital briefly declined before resuming growth, suggesting possible asset revaluations or capital structure adjustments.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio exhibits a mild downward trend initially, decreasing from 0.30 to around 0.23-0.25 through mid-2021, indicating an improvement in capital structure with debt representing a smaller portion of total capital. From this point forward, the ratio stabilizes near 0.25, reflecting a relatively steady balance between debt and capital. However, starting in 2024, the ratio shows a gradual increase, reaching approximately 0.29 by mid-2025, suggesting a growing reliance on debt relative to total capital during the later stages of the period.

Summary of Trends

The company's total debt and total capital both increased substantially during the period, with capital growth slightly outpacing the rise in debt for most of the timeframe, contributing to a generally stable debt to capital ratio initially. The increased leverage after 2023 indicates a shift in financing strategy or expansion activities requiring more borrowing. The steady high level of the debt to capital ratio in the latter years implies maintained elevated leverage risk, which should be monitored concerning the company’s operational performance and market conditions.

The financial data indicates a consistent upward trend in total assets over the observed quarterly periods. Starting from approximately $3.2 billion, total assets showed continuous growth, reaching about $7.6 billion by the later quarters. Although there are some fluctuations, the overall pattern points to a significant increase in asset base.

Specifically, the total assets increased steadily through successive quarters, with notable acceleration after early 2023. This suggests expansion activities, potential acquisitions, or asset revaluation contributing to the growth. Despite a few minor decreases in certain quarters, the asset size has nearly doubled over the span of the dataset.

Regarding total debt and the debt to assets ratio, the absence of data precludes a direct analysis of leverage trends. Without these figures, it is not possible to assess changes or stability in the company’s financial risk or capital structure over the reported periods.

In summary, while asset growth is clearly positive and signals business expansion or asset accumulation, the inability to analyze debt levels limits the evaluation of financial risk and leverage position changes throughout the time frame.

Total Debt (including operating lease liability)

The total debt levels exhibit a generally increasing trend over the observed periods. Starting at approximately 784 million USD, the debt gradually rose with occasional fluctuations, reaching beyond 1.7 billion USD by the latest date. Notable increments occurred particularly after mid-2023, with a sharper ascent observable from early 2024 onward, indicating a substantial increase in debt obligations over the analyzed timeframe.

Total Assets

Total assets demonstrate an overall upward trajectory, beginning near 3.2 billion USD and climbing to a peak exceeding 7.6 billion USD around early 2025. The asset base experienced consistent growth with some minor declines around mid-2022 and early 2024. Despite these small dips, the asset accumulation trend remained robust, reflecting ongoing investment or asset acquisition activities contributing to expanded resource capacity.

Debt to Assets Ratio (including operating lease liability)

The ratio of total debt to total assets shows a mild downward trend in the initial periods, decreasing from 0.24 to approximately 0.18, suggesting improved leverage or asset growth outpacing debt increases in the earlier phase. However, from mid-2021 onwards, this ratio stabilizes around 0.19 to 0.20 with slight oscillations. Toward the end of the timeframe, a gradual increase is observed, bringing the ratio back up to roughly 0.23. This pattern indicates that while assets grew substantially, debt accumulation in recent quarters has increased proportionally, slightly elevating leverage risk.

Overall Analysis

The data reflects a company managing expanding asset levels alongside rising debt commitments. The increase in total debt alongside growing assets has kept leverage relatively stable in the mid-term, but recent trends show a modest increase in leverage ratio, warranting monitoring of debt sustainability. The fluctuations in the debt-to-assets ratio imply management balancing growth ambitions against financial risk. The pronounced rise in total debt in the last several quarters may point to financing of new initiatives or expansions requiring further scrutiny to assess potential impacts on liquidity and financial stability.

The analysis of the financial position over the quarters reveals several notable trends in the company’s balance sheet composition.

Total Assets

Total assets exhibited an overall upward trajectory from early 2020 through mid-2025, increasing from approximately $3.2 billion to about $7.5 billion. Periods of robust growth are observable particularly from early 2023 onward, where assets grew markedly, peaking at $7.6 billion in early 2025 before a slight fluctuation around this level. Earlier growth, while steady, was more moderate with incremental increases each quarter. Some short-term decreases or stagnations appeared around mid-2022 and mid-2024, but the general progression remained positive.

Stockholders’ Equity

Stockholders’ equity also increased from approximately $1.8 billion in early 2020 to about $4.4 billion in mid-2025, more than doubling over the observed period. The increase was steady through 2021 and 2022, with noticeable acceleration in equity growth starting in early 2023. This suggests a strengthening in the company’s net asset base. There was some sideways movement and minimal declines in select quarters, particularly from mid-2023 to late 2024, but equity resumed rising afterward.

Financial Leverage Ratio

The financial leverage ratio, calculated as total assets divided by stockholders’ equity, exhibited some variability but generally remained within the range of approximately 1.6 to 1.8 throughout the period. The ratio showed a gradual decline from early 2020 to early 2021, indicating either relatively faster growth in equity compared to assets or deleveraging activities. Subsequently, the ratio fluctuated mildly without a clear sustained trend, suggesting stable use of leverage in the company’s capital structure. Near the end of the period (2024-2025), the leverage ratio remained fairly consistent around 1.7 to 1.8, implying consistent financial strategy regarding asset financing.

In summary, the company demonstrated strong asset and equity growth over the analyzed period, with prudent maintenance of financial leverage. The growth in equity proportionate to assets contributed to a relatively stable leverage ratio, reflecting balanced capital management. Minor short-term fluctuations in asset levels and equity occurred but did not significantly disrupt the overall positive trend.