Lululemon Athletica Inc. (LULU)

Fixed asset turnover

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Revenue (ttm)	US$ in thousands	9,616,970	9,206,170	8,858,840	8,518,010	8,140,340	7,493,410	7,086,940	6,669,230	6,250,340	5,821,210	5,488,220	4,940,542	4,393,223	4,074,043	3,872,751	3,853,161	3,977,845	3,749,265	3,580,782	3,420,930
Property, plant and equipment	US$ in thousands	1,545,810	1,413,920	1,367,170	1,312,790	1,269,610	1,122,490	1,059,860	974,784	927,710	876,489	806,387	774,685	745,687	719,880	698,514	659,265	671,693	656,372	617,090	582,738
Fixed asset turnover		6.22	6.51	6.48	6.49	6.41	6.68	6.69	6.84	6.74	6.64	6.81	6.38	5.89	5.66	5.54	5.84	5.92	5.71	5.80	5.87

January 28, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,616,970K ÷ $1,545,810K
= 6.22

Lululemon Athletica Inc.'s fixed asset turnover ratio has shown a generally positive trend over the past 20 quarters, indicating the company's efficiency in generating sales revenue relative to its investment in fixed assets. The ratio has consistently remained above 5.5, indicating that Lululemon is effectively utilizing its fixed assets to drive sales.

From November 2019 to January 2023, the fixed asset turnover ratio remained relatively stable between 5.6 and 6.5. However, there was a slight dip in the ratio in the first quarter of 2023, dropping to 5.89, before rebounding in subsequent quarters.

The last five recorded quarters have witnessed the fixed asset turnover ratio consistently above 6.4, with the highest being 6.84 in May 2022. This demonstrates Lululemon's ability to efficiently manage its fixed assets for revenue generation.

Overall, the trend in Lululemon's fixed asset turnover ratio reflects the company's effective utilization of its fixed assets to drive sales growth, indicating strong operational efficiency and asset management.