Lululemon Athletica Inc. (LULU)
Solvency ratios
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.68 | 1.78 | 1.80 | 1.64 | 1.68 |
Lululemon Athletica Inc.'s solvency ratios indicate a strong financial position with consistently low debt levels in relation to its assets, capital, and equity over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have remained at 0.00 for each year, suggesting that the company has not relied heavily on debt to finance its operations and growth.
The financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, has shown some fluctuations over the years, with a downward trend from 1.78 in 2023 to 1.68 in 2024. Despite the slight variation, the financial leverage ratio is still within a reasonable range, indicating that Lululemon Athletica Inc. has a healthy balance between debt and equity in its capital structure.
Overall, the solvency ratios point towards Lululemon Athletica Inc. having a strong ability to meet its financial obligations, maintain stability, and support future growth without excessive reliance on debt financing.
Coverage ratios
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 16.21 | 13.59 | 5.22 |
Lululemon Athletica Inc.'s interest coverage ratio has been showing a positive trend over the past five years, indicating the company's improving ability to cover its interest expenses with operating profits. The interest coverage ratio was not available for the two most recent fiscal years, suggesting that there may have been changes in the company's capital structure or financial performance during those periods. However, from fiscal year 2020 to fiscal year 2022, the interest coverage ratio increased significantly from 5.22 to 16.21, reflecting a strong capacity to meet interest obligations. This improvement suggests that Lululemon's profitability and operational efficiency have been increasing, enhancing its ability to service debt and potentially signaling a lower risk of default.