Lululemon Athletica Inc. (LULU)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	7,412,100	5,596,567	5,309,427	5,056,817	4,810,557	5,874,570	5,562,910	5,246,230	4,926,250	4,658,490	4,379,213	4,004,327	3,592,443	3,301,517	3,128,303	3,057,939	3,090,186	2,945,220	2,816,663	2,690,585
Inventory	US$ in thousands	1,323,600	1,663,620	1,660,750	1,580,310	1,447,370	3,483,430	2,924,150	1,275,040	966,481	1,887,800	789,836	732,890	647,230	770,990	672,773	625,849	518,513	627,102	494,294	443,006
Inventory turnover		5.60	3.36	3.20	3.20	3.32	1.69	1.90	4.11	5.10	2.47	5.54	5.46	5.55	4.28	4.65	4.89	5.96	4.70	5.70	6.07

January 28, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,412,100K ÷ $1,323,600K
= 5.60

Based on the inventory turnover data provided for Lululemon Athletica Inc. over the past 20 quarters, we can observe fluctuations in the efficiency of managing its inventory.

The inventory turnover ratio indicates how many times a company sells and replaces its inventory during a given period. A higher inventory turnover ratio typically suggests that a company is efficiently managing its inventory and selling its products effectively.

From the data provided, we can see that Lululemon's inventory turnover ratio has varied over the quarters, ranging from a low of 1.69 to a high of 6.07.

In the most recent quarter, Jan 28, 2024, the inventory turnover ratio was 5.60, reflecting an efficient turnover of inventory compared to the previous quarter. This indicates that Lululemon was able to sell and replace its inventory 5.60 times during the quarter.

It is noteworthy that the company experienced a significant increase in inventory turnover in the last five quarters, with ratios consistently above 4. This suggests an improvement in inventory management efficiency during this period.

Overall, Lululemon Athletica Inc.'s inventory turnover ratios have shown fluctuations over the past 20 quarters, but the recent trend indicates improved efficiency in managing and selling its inventory.