Lululemon Athletica Inc. (LULU)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Lululemon Athletica Inc. indicate a healthy financial position with consistently low debt levels relative to assets, capital, and equity over multiple periods. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all remain at 0.00, suggesting that the company operates with minimal financial leverage and relies more on equity financing than debt.
The financial leverage ratio, which measures the proportion of a company's assets that are financed by debt, shows slight fluctuations but generally stays around 1.70 over the periods examined. This indicates that Lululemon Athletica maintains a moderate level of financial leverage, which may be considered manageable as long as the company continues to generate sufficient earnings to cover its debt obligations.
Overall, the solvency ratios suggest that Lululemon Athletica Inc. is in a strong financial position with a conservative capital structure and a low reliance on debt to finance its operations, which bodes well for its long-term financial health and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 265.75 | 53.16 | 53.05 | 29.58 | 31.88 | 15.98 | 10.18 | 9.72 | 8.38 | 10.07 | 12.94 | 10.25 | 10.02 | 16.14 | 23.04 | 71.43 | 72.24 | 63.28 | 59.58 | 58.12 |
The interest coverage ratio of Lululemon Athletica Inc. has shown fluctuations over the period under review. The ratio indicates the company's ability to meet its interest obligations with its operating earnings.
The interest coverage ratio has generally been at healthy levels, with a high of 265.75 in January 2024, indicating that the company's operating earnings were significantly higher than its interest expenses at that time. This demonstrates a strong ability to cover its interest payments and suggests a lower risk of default on debt.
However, there are fluctuations in the ratio over time, with some periods showing lower ratios such as 8.38 in January 2022 and 9.72 in May 2022. These lower ratios suggest a tighter ability to cover interest expenses with operating earnings during those periods, which may raise concerns about the company's financial health and ability to handle debt obligations.
Overall, while Lululemon Athletica Inc. has generally maintained healthy interest coverage ratios, investors and creditors should closely monitor any significant changes in the ratio to assess the company's ability to meet its interest payments in the future.