Lululemon Athletica Inc. (LULU)

Total 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
Total assets	US$ in thousands	7,091,940	5,607,040	4,942,480	4,185,220	3,281,350
Total asset turnover		1.35	1.45	1.26	1.05	1.21

January 28, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $9,586,750K ÷ $7,091,940K
= 1.35

Lululemon Athletica Inc.'s total asset turnover ratio has exhibited fluctuations over the past five years. The ratio indicates the company's efficiency in generating sales revenue relative to its total assets.

In fiscal year 2024, the total asset turnover ratio stood at 1.35, reflecting a decrease from the previous year's 1.45. This could suggest that the company might have experienced challenges in efficiently utilizing its assets to generate revenue compared to the prior year.

Looking back, in fiscal year 2022, Lululemon had a total asset turnover ratio of 1.26, which was lower than in fiscal year 2021 (1.05). The increase in the ratio to 1.05 in 2021 could signify improved efficiency in asset utilization compared to the year before.

Furthermore, the company's performance in fiscal year 2020 showed a total asset turnover ratio of 1.21, indicating a relatively stable efficiency level compared to subsequent years.

Overall, the fluctuating trend in Lululemon Athletica Inc.'s total asset turnover ratio over the past five years suggests varying levels of effectiveness in utilizing its assets to generate sales revenue. It is crucial for the company to monitor and potentially optimize its asset utilization strategies to enhance operational efficiency and profitability.