Lululemon Athletica Inc. (LULU)

Debt-to-capital ratio

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
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
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

January 28, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,232,080K)
= 0.00

Based on the available data for Lululemon Athletica Inc., the debt-to-capital ratio has consistently been reported as 0.00 for the past five years ending January 28, 2024. This indicates that the company has not utilized debt as a source of capital, with its capital structure predominantly being composed of equity. A debt-to-capital ratio of zero suggests that Lululemon Athletica Inc. relies solely on equity financing to support its operations and growth initiatives, which may indicate a strong financial position and lower financial risk compared to companies with higher debt levels. This low debt-to-capital ratio could be viewed positively by investors and creditors as it implies lower leverage and potential financial stability for the company. However, it is important to consider the overall financial strategy and objectives of the company in conjunction with this ratio to gain a comprehensive understanding of its financial health and performance.