Lululemon Athletica Inc. (LULU)

Current ratio

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Total current assets	US$ in thousands	4,060,580	3,159,450	2,614,850	2,124,380	1,807,940
Total current liabilities	US$ in thousands	1,631,260	1,492,200	1,405,330	883,178	620,418
Current ratio		2.49	2.12	1.86	2.41	2.91

January 28, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,060,580K ÷ $1,631,260K
= 2.49

The current ratio of Lululemon Athletica Inc. has shown fluctuations over the past five years. It increased from 2.41 in 2021 to 2.91 in 2020, indicating a stronger ability to meet short-term obligations with current assets. However, in the subsequent years, the current ratio decreased to 1.86 in 2022 and then slightly improved to 2.12 in 2023 before reaching 2.49 in 2024.

The current ratio of 2.49 as of January 28, 2024, suggests that Lululemon Athletica Inc. had $2.49 in current assets for every $1 in current liabilities. This indicates an improved liquidity position as compared to the previous two years. A current ratio above 1.0 generally indicates that the company has more than enough current assets to cover its short-term liabilities, providing a strong indication of financial health and the ability to meet its short-term obligations.

Overall, the increasing trend in the current ratio over the past five years demonstrates an enhancement in Lululemon Athletica Inc.'s short-term liquidity and the company's ability to manage its current liabilities effectively.