Lululemon Athletica Inc. (LULU)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 2,534,961 2,434,152 2,857,381 2,655,270 2,531,481 2,069,377 1,634,744 1,698,043 1,674,354 1,509,523 1,382,693 1,333,706 1,420,488 1,366,409 1,274,329 1,512,458 1,701,806 1,699,406 1,730,090 1,430,565
Total assets US$ in thousands 7,603,290 7,083,670 6,744,140 6,828,500 7,091,940 7,091,940 6,022,260 6,022,260 5,992,460 5,992,460 5,571,540 5,607,040 5,607,040 5,309,440 5,309,440 4,920,710 4,697,210 4,697,210 4,942,480 4,942,480
Operating ROA 33.34% 34.36% 42.37% 38.89% 35.70% 29.18% 27.15% 28.20% 27.94% 25.19% 24.82% 23.79% 25.33% 25.74% 24.00% 30.74% 36.23% 36.18% 35.00% 28.94%

January 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $2,534,961K ÷ $7,603,290K
= 33.34%

Based on the provided data, Lululemon Athletica Inc.'s operating return on assets (operating ROA) has shown some fluctuations over the analyzed period from January 30, 2022, to January 31, 2025.

The operating ROA started at a strong level of 28.94% on January 30, 2022, and increased to 35.00% by January 31, 2022, indicating an improvement in the efficiency of utilizing its assets to generate operating income. The trend continued to be positive, reaching a peak of 42.37% on July 31, 2024, reflecting the company's effective management of its assets to generate profits.

However, there were periods where the operating ROA decreased, such as the decline to 24.00% on October 30, 2022, and further drops in the subsequent periods. This could be due to various factors like increased operating costs, changes in consumer demand, or economic conditions impacting the company's performance.

Overall, the fluctuations in Lululemon Athletica Inc.'s operating ROA suggest variations in the company's asset efficiency and profitability over time. Investors and stakeholders should closely monitor these changes to assess the company's operational performance and financial health.