Lululemon Athletica Inc. (LULU)

Operating return on assets (Operating ROA)

Jan 31, 2025 Jan 31, 2024 Jan 28, 2024 Jan 31, 2023 Jan 29, 2023
Operating income US$ in thousands 2,505,700 2,132,680 2,132,680 1,328,410 1,328,410
Total assets US$ in thousands 6,931,740 7,091,940 7,091,940 5,607,040 5,607,040
Operating ROA 36.15% 30.07% 30.07% 23.69% 23.69%

January 31, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $2,505,700K ÷ $6,931,740K
= 36.15%

The operating return on assets (operating ROA) of Lululemon Athletica Inc. has shown a consistent upward trend from January 29, 2023, to January 31, 2025. The ratio increased from 23.69% in January 2023 to 36.15% in January 2025. This indicates that the company has been effectively generating operating profit from its assets over the years. The rising trend suggests improved operational efficiency and profitability in utilizing its assets to generate earnings. This positive trajectory in operating ROA is a favorable indicator of Lululemon Athletica Inc.'s ability to effectively manage its assets and generate returns for its stakeholders.