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Lululemon Athletica Quick Ratio

: 1.14 (As of Oct. 2020)
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The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Lululemon Athletica's quick ratio for the quarter that ended in Oct. 2020 was 1.14.

Lululemon Athletica has a quick ratio of 1.14. It generally indicates good short-term financial strength.

NAS:LULU' s Quick Ratio Range Over the Past 10 Years
Min: 0.43   Med: 3.38   Max: 7.62
Current: 1.14

0.43
7.62

During the past 13 years, Lululemon Athletica's highest Quick Ratio was 7.62. The lowest was 0.43. And the median was 3.38.

NAS:LULU's Quick Ratio is ranked higher than
61% of the 1055 Companies
in the Retail - Cyclical industry.

( Industry Median: 0.88 vs. NAS:LULU: 1.14 )

Lululemon Athletica Quick Ratio Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Lululemon Athletica Annual Data
Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.81 3.57 3.78 2.05 2.08

Lululemon Athletica Quarterly Data
Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20
Quick Ratio 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 1.43 2.08 1.69 1.07 1.14

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Lululemon Athletica Quick Ratio Distribution

* The bar in red indicates where Lululemon Athletica's Quick Ratio falls into.



Lululemon Athletica Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

Lululemon Athletica's Quick Ratio for the fiscal year that ended in Jan. 2020 is calculated as

Quick Ratio (A: Jan. 2020 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1807.938-518.513)/620.418
=2.08

Lululemon Athletica's Quick Ratio for the quarter that ended in Oct. 2020 is calculated as

Quick Ratio (Q: Oct. 2020 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1600.813-770.99)/730.878
=1.14

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Lululemon Athletica  (NAS:LULU) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.


Lululemon Athletica Quick Ratio Related Terms


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