Lululemon Athletica Inc. (LULU)

Current ratio

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Total current assets	US$ in thousands	3,546,590	4,060,580	4,060,580	3,159,450	3,159,450
Total current liabilities	US$ in thousands	2,030,320	1,631,260	1,631,260	1,492,200	1,492,200
Current ratio		1.75	2.49	2.49	2.12	2.12

January 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,546,590K ÷ $2,030,320K
= 1.75

Lululemon Athletica Inc.'s current ratio has shown a consistent and healthy trend over the past few years. The company's current ratio was 2.12 as of January 29 and January 31, 2023, indicating that Lululemon had more than enough current assets to cover its short-term liabilities during that period.

In the following years, the current ratio increased further, reaching 2.49 as of January 28 and January 31, 2024. This indicates an improvement in the company's liquidity position and its ability to meet its short-term obligations comfortably.

However, there was a slight decrease in the current ratio to 1.75 as of January 31, 2025. While the current ratio is still above 1, which implies the company has sufficient current assets to cover its current liabilities, the decrease suggests that Lululemon may have experienced changes in its current asset or liability composition.

Overall, Lululemon Athletica Inc.'s current ratio demonstrates a strong liquidity position, although analysts may want to further investigate the factors contributing to the fluctuation in the ratio over the years to assess its ongoing financial health.