Lululemon Athletica Inc. (LULU)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,015,038	1,914,229	2,828,119	2,700,509	2,605,982	2,051,748	1,617,115	1,605,913	2,398,048	2,325,347	2,198,517	2,149,530	1,400,128	1,346,049	1,253,969	1,495,018	1,704,726	1,750,580	1,781,264	1,495,105
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		46.17%	44.02%	70.15%	64.00%	61.58%	48.48%	45.86%	45.55%	67.87%	65.81%	66.22%	68.27%	44.47%	44.29%	41.26%	52.31%	63.89%	65.61%	65.01%	54.56%

January 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,015,038K ÷ ($—K + $4,364,840K)
= 46.17%

Lululemon Athletica Inc.'s return on total capital has shown fluctuations over the past few years. The ratio was 54.56% as of January 30, 2022, and improved to 65.01% by January 31, 2022. It continued to increase, reaching 65.61% by April 30, 2022, and slightly dropping to 63.89% by May 1, 2022.

Subsequently, the return on total capital decreased to 52.31% by July 31, 2022, and then witnessed a significant decline to 41.26% by October 30, 2022. However, the ratio showed a slight recovery by October 31, 2022, standing at 44.29%.

Moving into 2023, the return on total capital increased to 44.47% by January 29, and then notably improved to 68.27% by January 31, 2023. The trend continued to be positive, with the ratio reaching 66.22% by April 30, 2023, and further increasing to 65.81% by July 30, 2023. By the end of July 2023, the return on total capital climbed to 67.87%.

However, there was a slight decline in the ratio by the end of October 2023, at 45.55%, followed by a minor increase to 45.86% by October 31, 2023. The positive trend resumed in 2024, with the return on total capital rising to 48.48% by January 28, and then further increasing to 61.58% by January 31, 2024.

By April 30, 2024, the ratio improved to 64.00%, and then significantly increased to 70.15% by July 31, 2024, indicating a strong performance. However, there was a decrease in the return on total capital by the end of October 2024, at 44.02%, and a further dip to 46.17% by January 31, 2025.

Overall, Lululemon Athletica Inc.'s return on total capital has showcased a mix of fluctuations and improvements over the periods analyzed, reflecting the company's ability to generate returns from its capital investments.