Lululemon Athletica Inc. (LULU)

Interest coverage

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	2,132,680	1,328,410	1,333,360	819,986	889,110
Interest expense	US$ in thousands	—	—	82,274	60,320	170,216
Interest coverage		—	—	16.21	13.59	5.22

January 28, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $2,132,680K ÷ $—K
= —

Lululemon Athletica Inc.'s interest coverage ratio has shown a positive trend over the last five fiscal years, reflecting the company's ability to comfortably meet its interest obligations from its operating profits. The interest coverage ratio was 16.21 in January 30, 2022, indicating a significant improvement from 2019 when it stood at 5.22. This suggests that Lululemon has ample earnings to cover its interest expenses, which is a positive indication of financial stability. Unfortunately, specific figures for the most recent years are not available to provide a complete analysis.