Lululemon Athletica Inc. (LULU)

Quick 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
Cash	US$ in thousands	2,243,970	1,091,140	1,107,530	950,607	1,154,870	352,624	498,831	649,016	1,259,870	993,591	1,170,040	1,179,740	1,150,520	481,581	522,998	823,006	1,093,500	586,153	623,738	576,241
Short-term investments	US$ in thousands	8	47	8	8	8	8	34,894	136,127	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	124,769	107,004	106,221	107,468	132,906	96,179	81,784	78,391	77,001	75,343	56,150	56,956	62,399	59,772	48,922	48,684	40,219	35,744	27,659	20,105
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
Quick ratio		1.45	0.83	0.88	0.84	0.86	0.34	0.51	0.72	0.95	0.96	1.25	1.28	1.37	0.74	0.75	1.38	1.83	1.08	1.18	1.19

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 exhibited fluctuations over the periods analyzed. The quick ratio indicates the company's ability to meet its short-term obligations using its most liquid assets. A higher quick ratio is generally seen as favorable as it suggests the company has an adequate level of liquid assets to cover its short-term liabilities.

Looking at the data provided, the quick ratio has ranged from a low of 0.34 to a high of 1.83. The quick ratio was below 1 in several periods, indicating that in those instances, the company may have had difficulty meeting its short-term obligations with its most liquid assets alone.

There are periods where the quick ratio was above 1, suggesting a healthier position in terms of liquidity. Notably, the quick ratio improved significantly from the third quarter of 2022 to the first quarter of 2023, indicating an enhanced ability to cover short-term liabilities using liquid assets.

Overall, analyzing the quick ratio alongside other liquidity and financial metrics would provide a more comprehensive understanding of Lululemon Athletica Inc.'s financial health and liquidity position.