Lululemon Athletica Inc. (LULU)
Financial leverage ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,931,740 | 7,091,940 | 7,091,940 | 5,607,040 | 5,607,040 |
| Total stockholders’ equity | US$ in thousands | 4,803,230 | 4,232,080 | 4,232,080 | 3,148,800 | 3,148,800 |
| Financial leverage ratio | 1.44 | 1.68 | 1.68 | 1.78 | 1.78 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,931,740K ÷ $4,803,230K
= 1.44
Based on the provided financial leverage ratio data for Lululemon Athletica Inc., we can observe a decreasing trend in the company's financial leverage ratio over the past few years.
As of January 29, 2023, and January 31, 2023, the financial leverage ratio stood at 1.78, indicating that the company's level of debt relative to its equity was 1.78 times. This ratio remained constant in the subsequent year, January 28, 2024, and January 31, 2024.
However, there was a notable decrease in the financial leverage ratio to 1.44 as of January 31, 2025. This reduction suggests that Lululemon Athletica Inc. may have been gradually reducing its reliance on debt to finance its operations or experiencing growth in equity relative to debt.
A declining financial leverage ratio can indicate improved financial stability and a lower risk of default for the company, as it implies a lower proportion of debt in its capital structure. It is essential to monitor this trend over time to assess the company's capital structure management and financial risk profile effectively.
Peer comparison
Jan 31, 2025