Lululemon Athletica Inc. (LULU)
Fixed asset turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,586,750 | 8,149,170 | 6,241,430 | 4,397,390 | 3,981,220 |
| Property, plant and equipment | US$ in thousands | 1,545,810 | 1,269,610 | 927,710 | 745,687 | 671,693 |
| Fixed asset turnover | 6.20 | 6.42 | 6.73 | 5.90 | 5.93 |
January 28, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,586,750K ÷ $1,545,810K
= 6.20
The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of investment in fixed assets.
Based on the data provided for Lululemon Athletica Inc., the fixed asset turnover has been consistently high over the past five years, ranging from 5.90 to 6.73. This suggests that the company has been effectively utilizing its fixed assets to generate sales.
The trend indicates that Lululemon has been maintaining a strong level of efficiency in utilizing its fixed assets to generate revenue. The consistently high fixed asset turnover ratio is a positive sign, indicating the company's ability to generate sales from its investments in property, plant, and equipment.
Overall, the trend in Lululemon's fixed asset turnover ratio suggests that the company is efficiently managing its fixed assets to support its business operations and generate revenue.
Peer comparison
Jan 28, 2024