Lululemon Athletica Inc. (LULU)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total assets	US$ in thousands	7,603,290	7,083,670	6,744,140	6,828,500	7,091,940	7,091,940	6,022,260	6,022,260	5,992,460	5,992,460	5,571,540	5,607,040	5,607,040	5,309,440	5,309,440	4,920,710	4,697,210	4,697,210	4,942,480	4,942,480
Debt-to-assets ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

January 31, 2025 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $7,603,290K
= 0.00

The debt-to-assets ratio for Lululemon Athletica Inc. has consistently remained at 0.00 over the past few years, based on the provided data up to January 31, 2025. This indicates that the company has not utilized debt significantly to finance its assets, as the ratio suggests that the company's total debt is negligible in comparison to its total assets. A debt-to-assets ratio of 0.00 may signify that the company primarily relies on equity financing or has a very conservative debt policy.

Having a low or zero debt-to-assets ratio can be favorable as it implies lower financial risk and indicates a strong financial position with a lower probability of facing liquidity issues or bankruptcy due to excessive debt burden. However, it's essential to consider that while low debt levels may reduce financial risk, it could also potentially limit the company's ability to leverage debt for growth or investment opportunities.