Lululemon Athletica Inc. (LULU)

Return on total capital

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	2,132,680	1,328,410	1,333,360	819,986	889,110
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	4,232,080	3,148,800	2,740,050	2,558,570	1,952,220
Return on total capital		50.39%	42.19%	48.66%	32.05%	45.54%

January 28, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,132,680K ÷ ($—K + $4,232,080K)
= 50.39%

Lululemon Athletica Inc.'s return on total capital has shown a positive trend over the past five years, with figures increasing from 32.05% in January 2021 to 50.39% in January 2024. This indicates the company's efficiency in generating profits from its total capital employed has improved consistently over the years. The upward trajectory suggests that Lululemon has been successful in utilizing its capital resources effectively to generate strong returns for its investors. Overall, the company's robust return on total capital reflects its ability to generate substantial profits relative to the total capital invested in its operations.