lululemon athletica inc. (NASDAQ:LULU)

The financial ratios indicate several noteworthy trends over the observed periods.

Debt to equity (including operating lease liability)

This ratio demonstrates a general declining trend from 0.49 in May 2019 to a low of 0.30 in the mid-2021 period. Following this trough, the ratio experiences mild fluctuations, mostly remaining in the 0.30 to 0.34 range through early 2024. In the later periods, there is a slight uptick, reaching 0.40 by the mid-2025 timeframe. Overall, this indicates an initial reduction in leverage relative to equity, followed by stabilization and a modest increase in financial leverage toward the end of the data series.

Debt to capital (including operating lease liability)

The debt to capital ratio also shows a decline from 0.33 in May 2019 to around 0.23 by mid-2021, signifying an improvement in capital structure with lower reliance on debt. After this period, the ratio remains fairly stable, fluctuating slightly between 0.24 and 0.25 through early 2024. Towards the end of the timeline, a gradual increase is observed, with the ratio reaching 0.29 by mid-2025. This suggests a cautious return to higher debt levels as a proportion of total capital.

Debt to assets (including operating lease liability)

This metric follows a downward trend similar to the other leverage ratios, decreasing from 0.27 in May 2019 to around 0.18 in mid-2021, reflecting reduced leverage against total assets. Subsequently, the ratio shows minor variability but remains fairly stable around 0.19 to 0.20 until early 2024. In the final periods, there is a slight increase, reaching 0.23 by mid-2025. The pattern indicates initial deleveraging followed by steady leverage maintenance and a moderate recent increase.

Financial leverage

Financial leverage exhibits a reduction from 1.80 in May 2019 to about 1.64 in early 2021, indicating decreased total asset usage financed by equity and debt combined. Following this period, the ratio oscillates between 1.62 and 1.80 with no clear directional trend, though a mild decrease is noted in mid-2024 compared to the earlier high points. This suggests a relatively stable leverage profile with moderate fluctuation over the timeframe.

In summary, the data reveals a phase of deleveraging from 2019 through approximately 2021, marked by declining debt ratios and financial leverage. From 2021 onward, these ratios stabilize with minor fluctuations and a gradual increase in debt usage observable in the final periods. This pattern may reflect strategic decisions balancing risk and growth opportunities, maintaining a moderate leverage position while adapting to changing financial conditions.

The financial data indicates a sustained growth in stockholders’ equity over the observed periods, suggesting strengthening financial position and accumulation of retained earnings or capital injections. Starting from approximately 1.37 billion US dollars in May 2019, stockholders’ equity exhibits a generally upward trajectory, reaching over 4.38 billion US dollars by August 2025. This reflects a significant increase, more than tripling the initial value across the timeline.

The equity growth appears consistent without noticeable periods of decline, which may imply ongoing profitability or effective capital management. The increments between consecutive reporting dates vary in magnitude, with some quarters showing more pronounced increases, potentially aligning with peak sales seasons or successful strategic initiatives.

Conversely, the framework lacks recorded data on total debt across all time periods, as all entries for total debt are empty. This absence of debt information precludes any analysis of leverage or capital structure changes over time. Similarly, no calculated data for the debt to equity ratio is presented, potentially due to the missing debt figures. Without debt data, it is impossible to assess the company’s use of financial leverage or its solvency risk through this lens.

Overall, the key observable trend centers on the progressive augmentation of stockholders’ equity, which may be indicative of solid growth and reinvestment of earnings. However, the inability to analyze debt levels limits insight into the overall balance sheet risk profile or capital adequacy. Additional debt-related data would be necessary to present a comprehensive evaluation of financial leverage and risk dynamics.

Total Debt (including operating lease liability)

Over the analyzed periods, total debt demonstrated a generally upward trajectory. Beginning at approximately 665 million US dollars in early May 2019, total debt exhibited steady increases with occasional minor fluctuations. There was a notable acceleration in debt growth from mid-2023 onward, with values rising from around 1.17 billion US dollars in October 2023 to over 1.76 billion US dollars by August 2025. This represents a significant expansion in leverage obligations over the examined timeframe.

Stockholders' Equity

Stockholders’ equity showed a consistent upward trend throughout the periods studied. Starting at roughly 1.37 billion US dollars in May 2019, equity levels rose steadily, with few interruptions, reaching over 4.38 billion US dollars by August 2025. The growth in equity generally outpaced increases in total debt, although the rate of increase varied across different intervals. Notably, there was an accelerated build-up in equity values from 2020 onward, emphasizing solid accumulation of net assets.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio declined from 0.49 in May 2019 to a low point of around 0.30 during mid-2021, indicating improved leverage and relatively stronger equity growth compared to debt at that time. Following this period, the ratio stabilized, fluctuating modestly between 0.30 and 0.36 through early 2024. However, from that point forward, a gradual increase in the ratio is observed, reaching approximately 0.40 by August 2025. This indicates a relative increase in debt levels compared to equity, signaling a slight shift towards greater financial leverage in recent periods.

The financial data reveals a fluctuating trend in total capital over the analyzed periods. Beginning at approximately 1.37 billion US dollars in early 2019, the total capital experienced a general upward trajectory with some periods of deceleration.

Total Capital

Starting at 1,366,720 thousand US dollars as of May 5, 2019, total capital increased steadily, reaching 2,195,218 thousand US dollars by February 2, 2020.

A slight decline was observed in the following quarter to 1,835,787 thousand US dollars on May 3, 2020, possibly indicative of economic impacts during that period.

Subsequent quarters showed recovery and growth, with some fluctuations. Notably, total capital rose to 3,534,482 thousand US dollars by July 30, 2023, which marked one of the highest points in the dataset.

Late 2023 and early 2024 figures remained elevated, hovering around the 4.3 billion US dollar mark, signifying a consolidation phase at higher capital levels.

The most recent data point from August 3, 2025, registered a slight decrease to 4,387,279 thousand US dollars, representing a small decline from the peak levels observed earlier.

Due to the absence of reported values for total debt and debt to capital ratio, no analysis can be provided for leverage or capital structure during the time periods covered. The lack of this data limits insight into the company's financial risk profile and use of debt financing over the course of the analyzed intervals.

Total debt (including operating lease liability)

Over the observed period, the total debt has generally exhibited an upward trajectory. Starting at approximately $664.9 million in early May 2019, the debt level showed a steady increase with some fluctuations, reaching above $1.76 billion by early August 2025. Notably, there was a marked acceleration in debt accumulation from around January 2024 onward, with total debt rising from approximately $1.17 billion to $1.76 billion over about 20 months. This indicates increasing leverage or growing financial obligations in recent periods.

Total capital (including operating lease liability)

The total capital also demonstrates consistent growth throughout the timeline. Initial capital stood at roughly $2.03 billion in May 2019, climbing progressively to nearly $6.15 billion by August 2025. The pace of capital growth appears fairly steady with some periods of faster expansion, notably between August 2023 and August 2025 when the capital increased from about $4.69 billion to over $6.14 billion. This trend points to an overall increase in the company's capital base, potentially driven by equity, retained earnings, or other capital-raising activities.

Debt to capital (including operating lease liability)

The debt-to-capital ratio reveals a declining trend from May 2019 through early 2021, moving down from 0.33 to approximately 0.23-0.24, indicating a reduction in relative financial leverage during this timeframe. However, starting around late 2021 and through to mid-2025, this ratio shows a gradual upward movement, rising to approximately 0.29 by August 2025. This increase suggests that debt is growing at a slightly faster rate than total capital in recent periods, which could imply higher financial risk or a strategic decision to enhance leverage.

The analysis of the available quarterly financial data reveals several notable trends involving the total assets of the company over the observed periods. Although data on total debt and the debt to assets ratio are unavailable, the trajectory for total assets can be meaningfully interpreted.

Total Assets

The total assets exhibit a consistent upward trend throughout the periods from May 5, 2019, to August 3, 2025. Beginning at approximately US$2.46 billion in May 2019, total assets increased steadily across successive quarters, reaching a peak of about US$7.60 billion by February 2025. There are minor fluctuations visible, such as slight dips around May 2022 and July 2024; however, these are quickly followed by recovery and further growth.

The growth from roughly US$2.46 billion to US$7.60 billion over the approximately six-year span indicates a substantial enhancement in asset accumulation, reflecting potential expansion strategies, increased capital investment, or improved operational scale.

The acceleration in asset growth appears more pronounced after early 2021, with more significant quarter-over-quarter increases. This could point to pivotal developments in the company's business activities or favorable market conditions contributing to asset buildup during that time.

Given the absence of debt data, it is not possible to evaluate leverage or financial risk through traditional debt-related metrics such as the debt to assets ratio. Nonetheless, the evident growth in total assets suggests robust capital accumulation, which, if supported by efficient funding strategies and revenue generation, could underpin strong financial health.

Total Debt (including operating lease liability)

The total debt exhibited an overall upward trend across the periods analyzed. Beginning at approximately $665 million in May 2019, the debt increased steadily with occasional fluctuations. This growth accelerated notably from early 2023 onward, culminating in a peak near $1.76 billion by August 2025. Despite some minor dips, the trajectory clearly reveals a significant expansion in debt obligations over the span of six years.

Total Assets

Total assets showed a generally positive growth pattern, starting around $2.46 billion in May 2019 and increasing to peak values above $7 billion in the early to mid-2020s. The asset base expanded substantially through the observation period, reflecting possible asset acquisitions or organic growth. After reaching a high near $7.6 billion in May 2025, assets exhibited a slight decline but remained elevated relative to initial levels, suggesting relative stability at a higher scale.

Debt to Assets Ratio (including operating lease liability)

The debt-to-assets ratio decreased from 0.27 in May 2019 to a low near 0.18 during 2020 and early 2021, indicating improved leverage or asset growth outpacing debt increase during that period. However, from mid-2021 onward, the ratio gradually increased again, fluctuating between 0.19 and 0.23. By August 2025, the ratio returned to approximately 0.23, signaling a moderate increase in leverage relative to the earlier trough. This suggests that debt levels rose at a pace closer to or slightly exceeding asset growth in the later periods.

Summary of Financial Trends

The financial data reveals an overall expansion in both debt and assets over the analyzed timespan, with assets growing at a relatively steady clip but debt accelerating notably during the later years. The decrease and subsequent gradual increase of the debt-to-assets ratio indicate alternating phases of deleveraging and more aggressive borrowing or slower asset growth. The most recent period shows an elevated debt-to-assets ratio compared to the earlier years, which could imply increased financial risk or strategic leverage deployment. These trends are consistent with a company scaling its operations or making significant investments financed partially through increased debt obligations.

The analysis of the financial data reveals the following trends and insights regarding the company's assets, equity, and financial leverage over the observed periods.

Total Assets

Total assets demonstrate a generally upward trend from May 5, 2019, through August 3, 2025, increasing from approximately 2.46 billion USD to roughly 7.52 billion USD. There are some fluctuations visible, such as a slight decline around May 3, 2020, and a minor dip observed toward the middle of 2025. Nevertheless, the overall trajectory reflects significant growth in asset base, more than tripling over the course of the data period. This growth could suggest ongoing expansion activities, acquisitions, or increased capital investments.

Stockholders’ Equity

Stockholders' equity also follows a similar increasing pattern over time, moving from about 1.37 billion USD in May 2019 to approximately 4.39 billion USD by August 2025. While there are some periods showing slight reductions or stabilization—such as drops around the first quarter of 2020 and slight decreases in mid-2024—the general trend indicates a strengthening equity position. This improvement in equity may reflect retained earnings growth, capital raises, or improved profitability, contributing to a stronger financial foundation.

Financial Leverage

Financial leverage ratios display moderate fluctuations throughout the timeframe but generally remain within a relatively narrow band between approximately 1.62 and 1.8. Early periods indicate a gradual decline in leverage ratio from 1.8 to around 1.64 by early 2021, implying a reduction in debt relative to equity or an increase in equity financing. Subsequently, the ratio fluctuates modestly, with peaks near 1.78 and lows around 1.62, suggesting the company maintains a steady balance between debt and equity funding sources. The stable leverage ratios, despite asset growth, may indicate prudent financial management aimed at controlling risk and maintaining a consistent capital structure.