Lululemon Athletica Inc. (LULU)

Current ratio

		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
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
Current ratio		2.16	1.57	2.43	2.72	2.49	2.49	2.32	2.32	2.40	2.40	2.43	2.12	2.12	1.99	1.99	1.98	1.91	1.91	1.86	1.86

January 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,980,300K ÷ $1,839,630K
= 2.16

The current ratio of Lululemon Athletica Inc. has shown fluctuating trends over the reporting periods provided. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has improved from 1.86 in January 2022 to a peak of 2.72 in April 2024. This indicates that the company had a healthy level of current assets relative to its current liabilities during this period.

However, there was a notable drop in the current ratio to 1.57 in October 2024, suggesting a potential strain on the company's liquidity position at that point in time. It is important to investigate the reasons behind this decrease in the current ratio, as a ratio below 2 could indicate potential liquidity issues or difficulties in paying short-term obligations.

Overall, while the current ratio of Lululemon Athletica Inc. has exhibited fluctuating patterns, the company has generally maintained a solid position in terms of liquidity and short-term solvency over the periods analyzed. Further analysis would be necessary to understand the factors driving the fluctuations in the current ratio and their implications for the company's financial health.