Lululemon Athletica Inc. (LULU)

Cash ratio

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Cash and cash equivalents	US$ in thousands	2,243,970	1,154,870	1,259,870	1,150,520	1,093,500
Short-term investments	US$ in thousands	8	8	318,698	183,015	203,360
Total current liabilities	US$ in thousands	1,631,260	1,492,200	1,405,330	883,178	620,418
Cash ratio		1.38	0.77	1.12	1.51	2.09

January 28, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,243,970K + $8K) ÷ $1,631,260K
= 1.38

The cash ratio of Lululemon Athletica Inc. has varied over the past five years. The ratio was strongest in February 2020 at 2.09, indicating that the company had $2.09 in cash and cash equivalents for every $1 of current liabilities. This suggests a healthy level of liquidity to cover short-term obligations.

Subsequently, the cash ratio decreased to 1.51 in January 2021, rebounded to 1.12 in January 2022, and increased further to 0.77 in January 2023. These fluctuations may point to changes in the company's cash management practices or shifts in its operating environment.

Most recently, as of January 28, 2024, the cash ratio improved to 1.38, indicating a stronger liquidity position compared to the previous year. Overall, while there have been fluctuations in the cash ratio of Lululemon Athletica Inc., the ratio has generally indicated a sufficient level of cash to cover short-term liabilities, with the most recent data showing positive momentum in liquidity management.