Lululemon Athletica Inc. (LULU)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	1,550,190	1,000,533	1,007,289	955,207	854,800	1,169,493	1,101,811	1,020,364	975,322	870,655	826,510	705,237	588,913	557,097	539,436	577,625	645,596	566,040	534,471	505,251
Total stockholders’ equity	US$ in thousands	4,232,080	3,525,850	3,533,480	3,320,080	3,148,800	3,039,200	2,857,800	2,668,050	2,740,050	2,658,460	2,671,170	2,639,860	2,558,570	2,162,950	2,001,100	1,835,790	1,952,220	1,648,740	1,507,380	1,366,720
ROE		36.63%	28.38%	28.51%	28.77%	27.15%	38.48%	38.55%	38.24%	35.60%	32.75%	30.94%	26.71%	23.02%	25.76%	26.96%	31.46%	33.07%	34.33%	35.46%	36.97%

January 28, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,550,190K ÷ $4,232,080K
= 36.63%

Lululemon Athletica Inc.'s return on equity (ROE) has shown relatively strong performance over the past few quarters. The ROE has been consistently high, ranging from 23.02% to 38.55% over the last two years, indicating that the company has been effectively utilizing its shareholders' equity to generate profit.

The upward trend in ROE from August 2021 to January 2024 demonstrates the company's ability to generate higher profits compared to the equity invested by its shareholders. This suggests efficient management of assets and effective cost control measures.

The highest ROE of 38.55% was recorded in July 2022, indicating a peak in profitability during that period. The consistent performance at high levels above 25% showcases the company's ability to deliver strong returns to its shareholders.

Overall, Lululemon Athletica Inc.'s ROE performance reflects the company's solid financial health and efficient use of its equity, which is an encouraging sign for investors looking for sustainable returns.