Lululemon Athletica Inc. (LULU)

Return on assets (ROA)

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Net income	US$ in thousands	1,814,620	1,550,190	1,550,190	854,800	854,800
Total assets	US$ in thousands	6,931,740	7,091,940	7,091,940	5,607,040	5,607,040
ROA		26.18%	21.86%	21.86%	15.25%	15.25%

January 31, 2025 calculation

ROA = Net income ÷ Total assets
= $1,814,620K ÷ $6,931,740K
= 26.18%

Lululemon Athletica Inc.'s return on assets (ROA) has shown a positive trend over the years based on the provided data. The ROA increased from 15.25% as of January 29, 2023, and January 31, 2023, to 21.86% by January 28, 2024, and January 31, 2024. This improvement indicates that the company has been effectively utilizing its assets to generate profits.

Moreover, there was a notable jump in the ROA to 26.18% by January 31, 2025, reflecting a further enhancement in the company's efficiency in generating earnings relative to its total assets. This increase may suggest improved management of assets, increased profitability, or both, which can be favorable indicators for investors and stakeholders.

Overall, the upward trajectory in Lululemon Athletica Inc.'s ROA demonstrates a positive performance in terms of asset utilization and profitability, highlighting the company's operational effectiveness and potential for generating returns for its shareholders.