Lululemon Athletica Inc. (LULU)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,132,676	1,533,212	1,547,524	1,469,475	1,328,408	1,604,538	1,510,058	1,399,881	1,333,355	1,200,705	1,147,678	981,056	819,986	778,567	749,476	793,049	889,110	804,043	764,117	730,343
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		50.39%	43.48%	43.80%	44.26%	42.19%	52.79%	52.84%	52.47%	48.66%	45.17%	42.97%	37.16%	32.05%	36.00%	37.45%	43.20%	45.54%	48.77%	50.69%	53.44%

January 28, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,132,676K ÷ ($—K + $4,232,080K)
= 50.39%

Lululemon Athletica Inc.'s return on total capital has shown fluctuations over the past few quarters. The ratio ranged from 32.05% to 53.44% during the period specified. It peaked at 53.44% in Q2 2019 and saw a slight decline before a notable increase to 52.84% in Q3 2022. However, the return on total capital decreased to its lowest point of 32.05% in Q1 2021 before gradually recovering. This indicates that the company has been effectively utilizing its total capital to generate returns for its investors, although there have been periods of fluctuations in performance.