lululemon athletica inc. (NASDAQ:LULU)

The analysis of the annual financial ratios over the reported periods reveals notable trends across different turnover metrics.

Net Fixed Asset Turnover

This ratio exhibits a generally fluctuating pattern, starting at 5.92 in early 2020, experiencing a slight decrease in 2021 to 5.90, followed by an increase peaking at 6.74 in 2022. Subsequently, it declines gradually to 5.95 by early 2025. The overall trend suggests some variability but a modest downward movement in the later years, indicating a potential decrease in the efficiency of using net fixed assets to generate sales over time.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

This adjusted ratio starts lower than the standard net fixed asset turnover at 2.92 in 2020 and shows a consistent upward trend through 2022, reaching 3.62. After 2022, a gradual decline is observed through 2025, ending at 3.31. The increase up to 2022 indicates improved utilization of assets when leasing is considered, but the subsequent decline implies some decrease in operational efficiency of leased and owned assets combined.

Total Asset Turnover

The total asset turnover ratio displays an initial decrease from 1.21 in 2020 to 1.05 in 2021, followed by a significant increase to 1.45 in 2023. This increase is slightly reversed in the subsequent years but remains above early levels at 1.39 in 2025. This pattern points to an overall improvement in the company’s ability to generate sales from its total asset base during the period after 2021, with some stabilization afterward.

Equity Turnover

This measure decreases from 2.04 in early 2020 to 1.72 in 2021, then sharply rises to 2.58 in 2023 before moderate fluctuations in the following years, ending at 2.45 in 2025. The rise after 2021 shows enhanced use of shareholders’ equity to produce revenue, which remains relatively strong through to the end of the period analyzed.

In summary, the various turnover ratios show a general pattern of decline in 2021, followed by recovery and strengthening in subsequent years, particularly in total asset and equity turnover ratios. Net fixed asset turnover ratios, while improving temporarily, indicate some backsliding toward the end of the timeline. These trends collectively suggest shifts in asset utilization efficiency and equity management over the period.

Net Revenue

The net revenue demonstrates a consistent and strong upward trend over the analyzed periods. Starting from approximately 3.98 billion US dollars in the earliest period, it increases steadily each year, reaching about 10.59 billion US dollars in the most recent period. The sharpest growth is observed between the years ending in 2021 and 2022, followed by continued but relatively moderate growth rates thereafter. This pattern indicates robust business expansion and successful revenue generation over the six-year span.

Property and Equipment, Net

The net value of property and equipment also shows a continuous increase throughout the periods. Beginning at roughly 672 million US dollars, the asset base nearly triples over the six years, reaching approximately 1.78 billion US dollars in the final period. The growth appears relatively steady with incremental increases each year, reflecting ongoing investment in fixed assets, possibly linked to capacity expansion or enhancement of operational facilities.

Net Fixed Asset Turnover Ratio

This ratio, which measures the efficiency of the company's use of fixed assets to generate revenue, exhibits fluctuations without a clear consistent trend. The highest point is around 6.74 in the period ending January 2022, indicating peak asset utilization efficiency. Following this peak, the ratio declines gradually to 5.95 in the latest period, suggesting a slight reduction in how effectively fixed assets are being used to produce revenue. Despite this decline, the ratio remains at a healthy level, showing the company still maintains relatively efficient asset utilization.

Net Revenue

The net revenue exhibits a consistent upward trend over the examined periods, increasing from $3,979,296 thousand in February 2020 to $10,588,126 thousand in February 2025. This indicates substantial growth, with the largest year-over-year increases observed between January 2021 to January 2022 and January 2022 to January 2023. The growth rate slightly moderates in the later periods but remains strong overall.

Property and Equipment, Net (Including Operating Lease, Right-of-Use Asset)

The net value of property and equipment has steadily increased from $1,361,357 thousand in February 2020 to $3,196,873 thousand in February 2025. This rise reflects ongoing investment in fixed assets and leased operating assets. The increase is relatively smooth, with a noticeable acceleration from January 2022 onward, suggesting expansion or upgrading of physical assets supporting operations.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

The net fixed asset turnover ratio starts at 2.92 in February 2020, showing a gradual increase to a peak of 3.62 by January 2023. This indicates improving efficiency in generating revenue from fixed assets during the initial years. However, after January 2023, the ratio experiences a slight decline to 3.42 in January 2024 and further to 3.31 in February 2025. This decline might suggest that the pace of asset base growth is outstripping revenue growth, or operational efficiency is marginally decreasing in more recent years.

The financial data reveals a consistent upward trajectory in net revenue over the analyzed periods, indicating robust growth in the company's sales performance. Starting from approximately $3.98 billion, net revenue increased steadily each year, culminating in over $10.59 billion by early 2025. This progression demonstrates significant expansion in the company's market presence or product demand.

Total assets have similarly increased, reflecting ongoing investment and growth in the company's asset base. From about $3.28 billion at the start of the period, total assets grew gradually to reach over $7.6 billion by 2025, suggesting strategic asset accumulation to support the expanding operations.

The total asset turnover ratio, which measures the efficiency in using assets to generate revenue, shows some fluctuations but remains generally stable with an upward trend towards the end of the period. Initially, it decreased from 1.21 to 1.05 between 2020 and 2021, which may indicate a temporary decline in asset utilization efficiency possibly due to rapid asset growth or operational shifts. However, this ratio then improved to peak at 1.45 in 2023 before slightly decreasing to 1.39 in 2025, illustrating an overall enhancement in how effectively the company is generating revenue from its asset base.

Net Revenue

Displayed continuous year-over-year growth, more than doubling from 2020 to 2025.

Total Assets

Increased steadily, supporting operational expansion and suggesting capital investments correlated with business growth.

Total Asset Turnover

Experienced a dip early in the period but recovered and improved over the last three years, indicating better asset use efficiency.

Net Revenue

The net revenue demonstrates a consistent upward trend over the six-year period. Starting at $3,979,296 thousand in early 2020, it increased steadily each year, reaching $10,588,126 thousand by early 2025. Notably, the year-over-year growth appears robust, especially between 2021 and 2023, reflecting significant expansion in sales or service income.

Stockholders’ Equity

Stockholders’ equity also shows a positive growth trend from $1,952,218 thousand in 2020 to $4,324,047 thousand by 2025. The increases are relatively steady but with a particularly marked rise between 2023 and 2024, indicating enhanced retained earnings, additional capital contributions, or a revaluation of equity components during that period.

Equity Turnover Ratio

The equity turnover ratio fluctuates throughout the period, beginning at 2.04 in 2020 and dipping to 1.72 in 2021. It then rises to a peak of 2.58 in 2023 before experiencing a slight decrease in 2024 and a rebound in 2025 to 2.45. These changes suggest varying efficiency in utilizing equity to generate revenue, with the highest efficiency observed in 2023.