Lululemon Athletica Inc. (LULU)

Current ratio

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Total current assets	US$ in thousands	4,060,580	3,364,900	3,323,930	3,053,300	3,159,450	2,634,180	2,387,090	2,303,240	2,614,850	2,311,290	2,275,310	2,253,450	2,124,380	1,600,810	1,489,760	1,694,540	1,807,940	1,451,680	1,333,010	1,171,580
Total current liabilities	US$ in thousands	1,631,260	1,448,110	1,386,370	1,256,770	1,492,200	1,322,840	1,207,210	1,206,890	1,405,330	1,118,020	981,354	964,814	883,178	730,878	763,309	631,496	620,418	574,769	552,609	502,942
Current ratio		2.49	2.32	2.40	2.43	2.12	1.99	1.98	1.91	1.86	2.07	2.32	2.34	2.41	2.19	1.95	2.68	2.91	2.53	2.41	2.33

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 some fluctuations over the recent quarters, ranging from a low of 1.86 to a high of 2.91. The current ratio measures the company's ability to cover its short-term obligations with its current assets.

A current ratio above 1 indicates that a company has more current assets than current liabilities, which is considered a good sign of financial health. Lululemon's current ratio has generally been above 2 over the past few quarters, indicating that the company has a comfortable level of current assets to cover its short-term liabilities.

The current ratio was at its lowest at 1.86 in January 2022, which may have raised concerns about the company's ability to meet its short-term obligations at that time. However, the ratio improved in subsequent quarters, reaching a high of 2.91 in February 2020, which suggests that the company's liquidity position strengthened significantly.

Overall, Lululemon Athletica Inc.'s current ratio has demonstrated stability and remained relatively strong, providing reassurance that the company has ample current assets to meet its current liabilities.