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Lululemon Athletica Long-Term Debt & Capital Lease Obligation

: $726 Mil (As of Apr. 2022)
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Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Lululemon Athletica's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2022 was $726 Mil.

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Lululemon Athletica's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2022 was $726 Mil. Lululemon Athletica's Total Assets for the quarter that ended in Apr. 2022 was $4,697 Mil. Lululemon Athletica's LT-Debt-to-Total-Asset for the quarter that ended in Apr. 2022 was 0.16.

Lululemon Athletica's LT-Debt-to-Total-Asset increased from Apr. 2021 (0.14) to Apr. 2022 (0.16). It may suggest that Lululemon Athletica is progressively becoming more dependent on debt to grow their business.


Lululemon Athletica Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Lululemon Athletica's Long-Term Debt & Capital Lease Obligation can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lululemon Athletica Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Long-Term Debt & Capital Lease Obligation
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 611.46 632.59 692.06

Lululemon Athletica Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Long-Term Debt & Capital Lease Obligation Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 616.92 644.73 684.46 692.06 726.27

Lululemon Athletica Long-Term Debt & Capital Lease Obligation Calculation

Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.

Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.

The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.

A company's long term debt may have different dates of maturity and interest rates, depending on the terms.

Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.


Lululemon Athletica  (NAS:LULU) Long-Term Debt & Capital Lease Obligation Explanation

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.

Lululemon Athletica's LT-Debt-to-Total-Asset ratio for the quarter that ended in Apr. 2022 is calculated as:

LT-Debt-to-Total-Asset (Q: Apr. 2022 )=Long-Term Debt & Capital Lease Obligation (Q: Apr. 2022 )/Total Assets (Q: Apr. 2022 )
=726.27/4697.212
=0.15

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.

We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.

Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)

Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.

BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.

If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the company’s earnings power is focused on paying off the debt and not growth.

Important: little or no long term debt often means a Good Long Term Bet


Lululemon Athletica Long-Term Debt & Capital Lease Obligation Related Terms

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Lululemon Athletica Business Description

Lululemon Athletica logo
Industry
Address
1818 Cornwall Avenue, Vancouver, BC, CAN, V6J 1C7
Lululemon Athletica Inc. designs, distributes, and markets athletic apparel and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 550 company-owned stores in 17 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Executives
Neuburger Nicole officer: Chief Brand Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Loehnis Alison director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J1C7
Maestrini Andre officer: EVP, International C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Choe Michelle Sun officer: Chief Product Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVE VANCOUVER A1 V6J 1C7
Burgoyne Celeste officer: Pres Americas&Global Guest C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVE VANCOUVER A1 V6J 1C7
Frank Meghan officer: Chief Financial Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Gibson Kourtney director C/O MARKETAXESS HOLDINGS INC. 55 HUDSON YARDS, 15TH FLOOR NEW YORK NY 10001
White Emily director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Ferris Stephanie director C/O VANTIV, INC. 8500 GOVERNORS HILL DRIVE CINCINNATI OH 45249
Murphy Glenn director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J1C7
Mcneill Jon director 45500 FREMONT BLVD FREMONT CA 94538
Casey Martin Michael director
Morfitt Martha A M director P.O. BOX 1441 MINNEAPOLIS MN 55440-1441
Henry Kathryn director C/O LULULEMON ATHLETICA, INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Mcdonald Calvin director, officer: Chief Executive Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7

Lululemon Athletica Headlines

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