Lululemon Athletica Inc. (LULU)
Return on total capital
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 2,207,180 | 2,132,680 | 2,123,870 | 1,328,410 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,803,230 | 4,232,080 | 4,232,080 | 3,148,800 | 3,148,800 |
| Return on total capital | 0.00% | 52.15% | 50.39% | 67.45% | 42.19% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,803,230K)
= 0.00%
The return on total capital for Lululemon Athletica Inc. fluctuated over the period analyzed. Starting at 42.19% on January 29, 2023, it showed a significant increase to 67.45% on January 31, 2023. However, it dropped to 50.39% on January 28, 2024, followed by a slight increase to 52.15% on January 31, 2024. Notably, on January 31, 2025, the return on total capital decreased to 0.00%, which is a concerning sign as it implies that the company's capital utilization was unable to generate a return during that period. Monitoring this ratio closely over time will be crucial to assess the company's efficiency in utilizing its total capital.
Peer comparison
Jan 31, 2025