Lululemon Athletica Inc. (LULU)

Fixed asset turnover

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Revenue	US$ in thousands	10,588,100	9,619,280	9,586,750	8,110,520	8,149,170
Property, plant and equipment	US$ in thousands	—	—	1,545,810	1,269,610	1,269,610
Fixed asset turnover		—	—	6.20	6.39	6.42

January 31, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,588,100K ÷ $—K
= —

The fixed asset turnover ratio for Lululemon Athletica Inc. has been relatively stable over the past few years. This ratio measures how efficiently the company is using its fixed assets to generate revenue.

In January 2023, the fixed asset turnover was 6.42, indicating that for every dollar invested in fixed assets, the company generated $6.42 in revenue. This ratio slightly decreased to 6.39 in January 2023, but remained at a healthy level.

However, in January 2024, the fixed asset turnover dropped to 6.20. This could be a sign that the company's fixed assets are not being utilized as effectively to generate revenue compared to the previous years. The lack of improvement or a decrease in this ratio may suggest inefficiencies in the utilization of fixed assets.

Unfortunately, the data is not available for January 31, 2024, and January 31, 2025, so we cannot assess whether the trend continued or improved in those periods. It would be important for the company to monitor this ratio closely to ensure optimal utilization of its fixed assets and improve overall operational efficiency.