Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
lululemon athletica inc., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2026-02-01), 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).
An examination of long-term activity ratios reveals varying trends in asset utilization over the analyzed period. Generally, the ratios demonstrate a period of improvement followed by stabilization and, in some cases, a slight decline towards the later years. These observations suggest potential shifts in the company’s operational efficiency and investment strategies.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio initially increased from 5.90 in 2021 to 6.74 in 2022, indicating improved efficiency in generating sales from fixed assets. However, this ratio subsequently decreased, reaching 5.46 in 2026. This suggests a potential slowdown in the rate at which sales are generated from the company’s fixed asset base, possibly due to increased investment in fixed assets without a corresponding increase in sales, or a decline in sales.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also exhibited growth from 2.97 in 2021 to 3.62 in 2023. A subsequent decline is observed, with the ratio falling to 3.03 in 2026. This trend mirrors the standard net fixed asset turnover, but at a lower magnitude, and suggests that the inclusion of operating lease obligations impacts the overall asset turnover efficiency. The decreasing trend indicates a less efficient utilization of total fixed assets, including those acquired through operating leases.
- Total Asset Turnover
- The total asset turnover ratio consistently increased from 1.05 in 2021 to 1.45 in 2023, demonstrating an improved ability to generate sales from all assets. The ratio then stabilized, fluctuating between 1.36 and 1.39 in 2024 and 2025, before decreasing slightly to 1.31 in 2026. This suggests that while asset utilization improved significantly, the rate of improvement has slowed and is potentially reversing.
- Equity Turnover
- The equity turnover ratio showed a substantial increase from 1.72 in 2021 to 2.58 in 2023, indicating a more effective use of shareholder equity to generate sales. The ratio decreased to 2.24 in 2026, suggesting a reduced efficiency in generating sales per dollar of equity. This could be attributed to factors such as increased equity or stagnant sales growth.
Overall, the observed trends suggest a period of increasing asset utilization efficiency followed by a period of stabilization and slight decline. Further investigation would be required to determine the underlying causes of these shifts and their potential implications for future performance.
AI Ask an analyst for more
Net Fixed Asset Turnover
lululemon athletica inc., net fixed asset turnover calculation, comparison to benchmarks
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenue | 11,102,600) | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | |
| Property and equipment, net | 2,033,720) | 1,780,617) | 1,545,811) | 1,269,614) | 927,710) | 745,687) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 5.46 | 5.95 | 6.22 | 6.39 | 6.74 | 5.90 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Nike Inc. | — | 9.59 | 10.27 | 10.08 | 9.75 | 9.08 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Consumer Durables & Apparel | — | 8.61 | 9.32 | 9.34 | 9.26 | 8.66 | |
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Discretionary | — | 2.79 | 3.24 | 3.51 | 3.48 | 3.32 | |
Based on: 10-K (reporting date: 2026-02-01), 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).
1 2026 Calculation
Net fixed asset turnover = Net revenue ÷ Property and equipment, net
= 11,102,600 ÷ 2,033,720 = 5.46
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a fluctuating pattern over the observed period. Initially, the ratio increased from 5.90 in 2021 to 6.74 in 2022, indicating improved efficiency in generating revenue from fixed assets. However, this upward momentum was not sustained. The ratio decreased to 6.39 in 2023 and continued a downward trajectory, reaching 6.22 in 2024.
The decline continued into the forecast years, with the ratio falling to 5.95 in 2025 and further to 5.46 in 2026. This suggests a diminishing ability to generate sales revenue for each dollar invested in fixed assets. While net revenue consistently increased throughout the period, the growth rate of property and equipment, net, outpaced that of net revenue in the later years, contributing to the observed decrease in the turnover ratio.
- Net Fixed Asset Turnover Trend
- The ratio demonstrates an initial improvement followed by a consistent decline. The peak value of 6.74 in 2022 represents the highest efficiency in asset utilization during the analyzed timeframe. The projected value of 5.46 in 2026 indicates a potential weakening in the relationship between revenue generation and fixed asset investment.
The increase in property and equipment, net, suggests ongoing investment in fixed assets. However, the decreasing net fixed asset turnover ratio implies that these investments are not translating into proportional revenue gains. Further investigation into the nature of these investments and their impact on operational efficiency may be warranted.
- Revenue and Fixed Asset Growth
- While net revenue experienced consistent year-over-year growth, the rate of increase in property and equipment, net, accelerated, particularly from 2022 onwards. This differential growth rate is a key driver of the declining net fixed asset turnover ratio.
The observed trend warrants monitoring to determine if the decline in the ratio is temporary or indicative of a more fundamental shift in asset utilization efficiency. Management’s strategy regarding capital expenditures and their anticipated impact on revenue should be considered in evaluating this trend.
AI Ask an analyst for more
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
lululemon athletica inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenue | 11,102,600) | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | |
| Property and equipment, net | 2,033,720) | 1,780,617) | 1,545,811) | 1,269,614) | 927,710) | 745,687) | |
| Right-of-use operating lease assets | 1,630,181) | 1,416,256) | 1,265,610) | 969,419) | 803,543) | 734,835) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 3,663,901) | 3,196,873) | 2,811,421) | 2,239,033) | 1,731,253) | 1,480,522) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.03 | 3.31 | 3.42 | 3.62 | 3.61 | 2.97 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Nike Inc. | — | 6.14 | 6.65 | 6.40 | 6.05 | 5.56 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Consumer Durables & Apparel | — | 5.30 | 5.79 | 5.79 | 5.61 | 5.15 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Discretionary | — | 2.22 | 2.53 | 2.69 | 2.66 | 2.52 | |
Based on: 10-K (reporting date: 2026-02-01), 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).
1 2026 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 11,102,600 ÷ 3,663,901 = 3.03
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, alongside its contributing components of net revenue and net fixed assets (including operating leases and right-of-use assets), demonstrates a generally stabilizing, but ultimately declining, trend over the analyzed period. Initial growth in the ratio is followed by a period of moderation and eventual decrease.
- Net Revenue
- Net revenue exhibits consistent year-over-year growth throughout the period, increasing from US$4,401,879 thousand in 2021 to US$11,102,600 thousand in 2026. The rate of growth appears to decelerate slightly in the later years, though revenue continues to increase in absolute terms.
- Property and Equipment, Net (Including Operating Lease, Right-of-Use Asset)
- Net property and equipment, inclusive of operating leases and right-of-use assets, also demonstrates consistent growth, rising from US$1,480,522 thousand in 2021 to US$3,663,901 thousand in 2026. The growth in this asset base is more pronounced than the growth in net revenue in the later years of the period.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio increased from 2.97 in 2021 to 3.61 in 2022, and remained relatively stable at 3.62 in 2023. A slight decrease to 3.42 is observed in 2024, followed by further declines to 3.31 in 2025 and 3.03 in 2026. This indicates that while revenue is growing, it is not growing as quickly as the company’s investment in fixed assets. The ratio’s decline suggests diminishing efficiency in utilizing fixed assets to generate revenue, potentially due to increased investment outpacing revenue gains.
The observed trend suggests a potential shift in the company’s strategy, possibly involving increased investment in infrastructure or expansion of its asset base to support future growth. However, the declining turnover ratio warrants monitoring to ensure that these investments translate into proportional revenue increases. Continued observation is recommended to determine if this trend represents a temporary fluctuation or a more sustained change in operational efficiency.
AI Ask an analyst for more
Total Asset Turnover
lululemon athletica inc., total asset turnover calculation, comparison to benchmarks
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenue | 11,102,600) | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | |
| Total assets | 8,456,743) | 7,603,292) | 7,091,941) | 5,607,038) | 4,942,478) | 4,185,215) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 1.31 | 1.39 | 1.36 | 1.45 | 1.27 | 1.05 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Nike Inc. | — | 1.27 | 1.35 | 1.36 | 1.16 | 1.18 | |
| Total Asset Turnover, Sector | |||||||
| Consumer Durables & Apparel | — | 1.29 | 1.35 | 1.38 | 1.17 | 1.17 | |
| Total Asset Turnover, Industry | |||||||
| Consumer Discretionary | — | 0.86 | 0.93 | 0.97 | 0.96 | 0.88 | |
Based on: 10-K (reporting date: 2026-02-01), 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).
1 2026 Calculation
Total asset turnover = Net revenue ÷ Total assets
= 11,102,600 ÷ 8,456,743 = 1.31
2 Click competitor name to see calculations.
The total asset turnover ratio demonstrates a generally increasing trend from 2021 to 2023, followed by a stabilization and slight decline in subsequent years. This indicates evolving efficiency in utilizing assets to generate revenue.
- Overall Trend
- The ratio increased from 1.05 in 2021 to 1.45 in 2023, representing a substantial improvement in asset utilization. However, the ratio decreased to 1.36 in 2024, 1.39 in 2025, and 1.31 in 2026, suggesting a potential plateau or slight decrease in efficiency.
- Year-over-Year Changes
- A significant increase occurred between 2021 and 2022, with the ratio rising from 1.05 to 1.27. The largest single-year increase was observed between 2022 and 2023, moving from 1.27 to 1.45. The subsequent years show more modest fluctuations; a decrease from 1.45 to 1.36 in 2024, a slight increase to 1.39 in 2025, and a further decrease to 1.31 in 2026.
- Potential Implications
- The initial increase in the ratio suggests the company became more effective at generating sales from its asset base. The stabilization and subsequent slight decline may indicate that asset growth is outpacing revenue growth, or that the company is investing in assets that have not yet translated into proportional revenue increases. Further investigation into the composition of asset growth would be beneficial.
- Relationship to Revenue
- Net revenue consistently increased throughout the observed period. However, the rate of increase in revenue appears to have slowed relative to the rate of asset growth in the later years, contributing to the observed decline in the total asset turnover ratio. This suggests a diminishing return on asset investment.
AI Ask an analyst for more
Equity Turnover
lululemon athletica inc., equity turnover calculation, comparison to benchmarks
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenue | 11,102,600) | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | |
| Stockholders’ equity | 4,961,840) | 4,324,047) | 4,232,081) | 3,148,799) | 2,740,046) | 2,558,566) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 2.24 | 2.45 | 2.27 | 2.58 | 2.28 | 1.72 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Nike Inc. | — | 3.50 | 3.56 | 3.66 | 3.06 | 3.49 | |
| Equity Turnover, Sector | |||||||
| Consumer Durables & Apparel | — | 3.24 | 3.27 | 3.46 | 2.94 | 3.19 | |
| Equity Turnover, Industry | |||||||
| Consumer Discretionary | — | 2.67 | 3.21 | 3.82 | 4.14 | 3.70 | |
Based on: 10-K (reporting date: 2026-02-01), 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).
1 2026 Calculation
Equity turnover = Net revenue ÷ Stockholders’ equity
= 11,102,600 ÷ 4,961,840 = 2.24
2 Click competitor name to see calculations.
The equity turnover ratio demonstrates a generally increasing trend from 2021 to 2023, followed by stabilization and a slight decline in the most recent periods. This indicates a changing relationship between net revenue and stockholders’ equity over the observed timeframe.
- Equity Turnover Trend
- The equity turnover ratio increased from 1.72 in 2021 to 2.28 in 2022, representing a substantial rise in revenue generated per dollar of equity. This increase continued to 2.58 in 2023, signifying further improvement in the efficiency with which equity was used to generate sales. However, the ratio decreased to 2.27 in 2024, and further to 2.45 in 2025 before decreasing again to 2.24 in 2026.
The initial increase in equity turnover suggests improved operational efficiency or a more aggressive financial strategy involving increased revenue relative to equity. The subsequent stabilization and slight decline from 2023 onwards could indicate a leveling off of growth, increased equity investment, or a combination of both. The ratio remains above the 2021 level, suggesting continued, though potentially moderating, efficiency in equity utilization.
- Revenue and Equity Relationship
- Net revenue consistently increased throughout the period, growing from US$4,401,879 thousand in 2021 to US$11,102,600 thousand in 2026. Stockholders’ equity also increased, but at a slower pace than revenue, particularly in 2024, 2025 and 2026. This difference in growth rates contributes to the observed fluctuations in the equity turnover ratio.
The observed pattern suggests that while the company continues to grow its revenue base, the rate of equity expansion is not consistently aligned with revenue growth. This dynamic warrants further investigation to understand the underlying drivers and potential implications for long-term financial performance.
AI Ask an analyst for more