Lululemon Athletica Inc. (LULU)

Financial leverage ratio

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Total assets	US$ in thousands	7,091,940	6,022,260	5,992,460	5,571,540	5,607,040	5,309,440	4,920,710	4,697,210	4,942,480	4,572,010	4,405,100	4,329,830	4,185,220	3,627,920	3,494,030	3,201,790	3,281,350	2,855,140	2,694,740	2,463,020
Total stockholders’ equity	US$ in thousands	4,232,080	3,525,850	3,533,480	3,320,080	3,148,800	3,039,200	2,857,800	2,668,050	2,740,050	2,658,460	2,671,170	2,639,860	2,558,570	2,162,950	2,001,100	1,835,790	1,952,220	1,648,740	1,507,380	1,366,720
Financial leverage ratio		1.68	1.71	1.70	1.68	1.78	1.75	1.72	1.76	1.80	1.72	1.65	1.64	1.64	1.68	1.75	1.74	1.68	1.73	1.79	1.80

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 been relatively stable over the past several quarters, ranging from 1.64 to 1.80. The ratio indicates the proportion of the company's assets that are financed through debt. A higher financial leverage ratio suggests a higher degree of financial risk, as the company relies more on debt financing.

Lululemon's financial leverage ratio has hovered around the 1.70 mark, indicating a moderate level of leverage in its capital structure. This suggests that the company has a balanced mix of debt and equity financing. However, it is important to closely monitor any fluctuations in this ratio, as a significant increase could signal increasing risk due to higher debt levels.

Overall, based on the historical trend of Lululemon Athletica Inc.'s financial leverage ratio, the company appears to be managing its debt levels prudently, but investors and analysts should continue to monitor any changes in the ratio to assess the company's financial risk profile.