Lululemon Athletica Inc. (LULU)

Working capital turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Revenue (ttm)	US$ in thousands	10,588,130	10,181,730	10,987,150	10,820,290	10,815,620	9,819,680	8,826,760	8,623,330	9,190,950	9,773,070	9,420,800	9,276,900	8,373,390	7,205,950	6,962,520	7,234,740	7,510,760	7,337,340	7,174,500	6,496,010
Total current assets	US$ in thousands	3,980,300	3,132,730	3,571,740	3,768,090	4,060,580	4,060,580	3,364,900	3,364,900	3,323,930	3,323,930	3,053,300	3,159,450	3,159,450	2,634,180	2,634,180	2,387,090	2,303,240	2,303,240	2,614,850	2,614,850
Total current liabilities	US$ in thousands	1,839,630	1,996,870	1,468,650	1,383,570	1,631,260	1,631,260	1,448,110	1,448,110	1,386,370	1,386,370	1,256,770	1,492,200	1,492,200	1,322,840	1,322,840	1,207,210	1,206,890	1,206,890	1,405,330	1,405,330
Working capital turnover		4.95	8.96	5.22	4.54	4.45	4.04	4.60	4.50	4.74	5.04	5.24	5.56	5.02	5.50	5.31	6.13	6.85	6.69	5.93	5.37

January 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,588,130K ÷ ($3,980,300K – $1,839,630K)
= 4.95

Lululemon Athletica Inc.'s working capital turnover has fluctuated over the past few years. The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate revenues.

The data shows that the working capital turnover ratio ranged from a low of 4.04 to a high of 8.96. A higher working capital turnover ratio generally indicates that the company is effectively using its working capital to support its sales activities.

From the data provided, we can observe that there have been fluctuations in the working capital turnover ratio over time, with some periods showing improvements in efficiency while others showing a decline. For example, the ratio increased from 5.37 in January 2022 to a peak of 6.85 in May 2022, indicating improved efficiency in utilizing working capital during that time.

However, there were instances of a decline in efficiency, such as the decrease from 6.69 in April 2022 to 5.31 in October 2022. This suggests that the company may have faced challenges in managing its working capital effectively during those periods.

Overall, a comprehensive analysis of Lululemon Athletica Inc.'s working capital turnover reveals fluctuations in efficiency in utilizing its working capital to support its sales activities over the period covered in the data. Further analysis and comparison with industry benchmarks may provide more insights into the company's working capital management effectiveness.