Lululemon Athletica Inc. (LULU)

Financial leverage ratio

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Total assets	US$ in thousands	7,091,940	5,607,040	4,942,480	4,185,220	3,281,350
Total stockholders’ equity	US$ in thousands	4,232,080	3,148,800	2,740,050	2,558,570	1,952,220
Financial leverage ratio		1.68	1.78	1.80	1.64	1.68

January 28, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,091,940K ÷ $4,232,080K
= 1.68

The financial leverage ratio of Lululemon Athletica Inc. has shown some fluctuations over the past five years.

In January 2024, the financial leverage ratio stood at 1.68, indicating that the company relied on debt financing to a moderate extent to fund its operations and growth. This ratio decreased slightly from the previous year, which could suggest a more conservative approach to leverage in the most recent financial period.

Comparing this to January 2023, where the financial leverage ratio was 1.78, we see a higher level of leverage employed by the company in the prior year. However, it is worth noting that the ratio decreased from the peak reached in January 2022, when it was at 1.80.

Looking back to January 2021 and February 2020, the financial leverage ratio was 1.64 and 1.68 respectively, showcasing relatively consistent leverage levels in these two years.

Overall, the trend in Lululemon Athletica's financial leverage ratio indicates a degree of variability in the company's capital structure decisions over the past five years. An investor or analyst may want to further investigate the reasons behind these fluctuations and assess the implications for the company's solvency and financial risk management strategies.