Lululemon Athletica Inc. (LULU)

Payables 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
Payables	US$ in thousands	348,441	172,732	289,728	172,246	79,997
Payables turnover		21.27	39.32	17.00	20.86	38.63

January 28, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $7,412,100K ÷ $348,441K
= 21.27

The payables turnover ratio reflects how efficiently a company manages its accounts payable. Lululemon Athletica Inc.'s payables turnover ratio has fluctuated over the past five years. The ratio was highest in January 2023 at 39.32, indicating that the company was able to pay off its suppliers more frequently during that period. Conversely, the lowest ratio of 17.00 was recorded in January 2022, suggesting a slower rate of paying off its accounts payable.

The most recent data as of January 28, 2024, shows a payables turnover ratio of 21.27, which indicates an improvement compared to the previous year but is lower than the peak in 2023. This suggests that Lululemon Athletica Inc. is still managing its accounts payable efficiently, although not as effectively as in the past.

Overall, the fluctuations in Lululemon's payables turnover ratio reveal varying levels of efficiency in managing its accounts payable over the years. Further analysis and comparison with industry benchmarks would provide a clearer understanding of the company's performance in this area.