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 Apr. 2022 was 0.85.
Lululemon Athletica has a quick ratio of 0.85. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Lululemon Athletica's Quick Ratio or its related term are showing as below:
LULU'
s Quick Ratio Range Over the Past 10 Years
Min: 0.43 Med: 2.94 Max: 7.62
Current: 0.85
During the past 13 years, Lululemon Athletica's highest Quick Ratio was 7.62. The lowest was 0.43. And the median was 2.94.
LULU's Quick Ratio is ranked worse than 53.38% of 1124
companies
in the Retail - Cyclical industry
Industry Median: 0.91
vs LULU: 0.85
Lululemon Athletica Quick Ratio Historical Data
The historical data trend for Lululemon Athletica's Quick Ratio 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
Quick Ratio
3.78
2.05
2.08
1.67
1.17
Lululemon Athletica Quarterly Data
Jul17
Oct17
Jan18
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Quick Ratio
1.58
1.51
1.22
1.17
0.85
Competitive Comparison
For the Apparel Retail subindustry, Lululemon Athletica's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
Lululemon Athletica Quick Ratio Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, Lululemon Athletica's Quick Ratio distribution charts can be found below:
* 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. 2022 is calculated as
* 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.
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
Thank you for viewing the detailed overview of Lululemon Athletica's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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