Lululemon Athletica Inc. (LULU)

Quick ratio

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Cash	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
Receivables	US$ in thousands	124,769	132,906	77,001	62,399	40,219
Total current liabilities	US$ in thousands	1,631,260	1,492,200	1,405,330	883,178	620,418
Quick ratio		1.45	0.86	1.18	1.58	2.16

January 28, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,243,970K + $8K + $124,769K) ÷ $1,631,260K
= 1.45

The quick ratio of Lululemon Athletica Inc. has fluctuated over the past five years, ranging from 0.86 to 2.16. The quick ratio as of Jan 28, 2024, stands at 1.45, indicating that the company has $1.45 in liquid assets available to cover each dollar of its current liabilities.

Comparing this to previous years, the quick ratio has improved from 0.86 in Jan 29, 2023, to 1.45 in Jan 28, 2024. This upward trend suggests an enhanced ability to meet short-term obligations using liquid assets. However, the current quick ratio is lower than the ratio of 2.16 reported on Feb 2, 2020, indicating a potential decrease in liquidity compared to two years ago.

Overall, the quick ratio of Lululemon Athletica Inc. as of Jan 28, 2024, reflects a reasonably healthy liquidity position, but it is important to monitor future trends to ensure the company's ability to meet short-term financial commitments.