Lululemon Athletica Inc. (LULU)
Inventory turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,412,100 | 6,792,340 | 4,926,250 | 3,592,440 | 3,090,190 |
| Inventory | US$ in thousands | 1,323,600 | 1,447,370 | 966,481 | 647,230 | 518,513 |
| Inventory turnover | 5.60 | 4.69 | 5.10 | 5.55 | 5.96 |
January 28, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,412,100K ÷ $1,323,600K
= 5.60
Inventory turnover measures how effectively a company manages its inventory. Lululemon Athletica Inc.'s inventory turnover has shown a fluctuating trend over the past five years, ranging from 4.69 in Jan 29, 2023, to 5.96 in Feb 2, 2020. The increase in inventory turnover indicates that the company has become more efficient in selling its inventory relative to the previous year.
However, the inventory turnover slightly decreased in Jan 28, 2024, compared to the previous year, indicating a potential slowdown in inventory management efficiency. Despite this slight drop, Lululemon Athletica Inc. has generally demonstrated solid inventory turnover ratios over the past five years, indicating effective inventory management practices. A high inventory turnover ratio generally signifies strong sales and efficient inventory management, which are positive indicators for the company's operational performance.
Peer comparison
Jan 28, 2024