Lululemon Athletica Inc. (LULU)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	1,814,616	1,735,681	2,053,279	1,909,071	1,836,364	1,508,499	1,180,634	1,222,325	1,093,422	871,630	785,497	750,562	920,272	990,459	924,987	1,104,021	1,249,004	1,246,794	1,264,870	1,038,440
Total stockholders’ equity	US$ in thousands	4,364,840	4,348,420	4,031,640	4,219,810	4,232,080	4,232,080	3,525,850	3,525,850	3,533,480	3,533,480	3,320,080	3,148,800	3,148,800	3,039,200	3,039,200	2,857,800	2,668,050	2,668,050	2,740,050	2,740,050
ROE		41.57%	39.92%	50.93%	45.24%	43.39%	35.64%	33.49%	34.67%	30.94%	24.67%	23.66%	23.84%	29.23%	32.59%	30.44%	38.63%	46.81%	46.73%	46.16%	37.90%

January 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,814,616K ÷ $4,364,840K
= 41.57%

Lululemon Athletica Inc.'s return on equity (ROE) has shown some fluctuations over the past few years. The ROE ranged from a high of 50.93% on July 31, 2024, to a low of 23.66% on April 30, 2023. The ROE has generally trended upwards from 2022 to 2024, with a noticeable increase from around 30% in early 2023 to around 50% in mid-2024.

A high ROE indicates that the company is generating strong returns on shareholders' equity, which is a positive sign for investors. Lululemon Athletica's increasing trend in ROE suggests that the company has been effectively utilizing its equity to generate profits for shareholders. However, it is important to note that a high ROE can also be a result of financial leverage, so it is essential to further analyze the company's financial structure and performance to fully understand the factors driving its ROE.

Overall, Lululemon Athletica Inc.'s ROE performance reflects a mix of profitability and efficiency in utilizing shareholders' equity to generate returns, with a generally positive trend over the analyzed period.