Aureus
AExcellent

lululemon athletica inc.(LULU)

A

Financial data as of Jan 31, 2025Declining · Consumer Discretionary

FCF Margin15.0%Free Cash Flow / Revenue
Cash Conversion125.2%Operating CF / Net Income
Free Cash Flow$1.6B
Revenue$10.6B
Net Cash$408.5MCash exceeds debt
Debt / FCF1.0xManageable debt load
Current Ratio2.16Adequate short-term liquidity
YoY FCF Growth-32.5%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (15.0%, 1.0x)
→
-1Significant YoY FCF decline (-32.5%)
→
-0.5Highly volatile FCF (consistency: 1.93)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (1.0x)
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (15.0%)
  • Excellent cash conversion (125%)
  • Net cash position ($0.4B)
  • Very low debt relative to cash flow (1.0x)
  • Strong liquidity (current ratio: 2.16)

Concerns

  • Significant YoY FCF decline (-32.5%)
  • Highly volatile quarterly FCF
  • Significant FCF decline (-32.5% YoY)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin15.0%
Net Margin17.1%
Operating CF Margin21.5%
CapEx Ratio6.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$408.5MCash exceeds debt
Debt / FCF1.0xManageable debt load
Current Ratio2.16Strong liquidity
Debt / Equity0.36Low leverage

Quarterly FCF Trend

-32.5% YoYDeclining (-32.5%)

Free cash flow per quarter

Sector Comparison — Consumer Discretionary

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company Namelululemon athletica inc.
SectorConsumer Discretionary
Free Cash Flow$1.6B
Revenue$10.6B
Net Income$1.8B
Operating Cash Flow$2.3B
Capital Expenditure$689.2M
FCF Margin15.0%
Cash Conversion Rate125.2%
Net Margin17.1%
Total Debt$1.6B
Total Cash$2.0B
Net Cash$408.5M
Current Ratio2.16
Debt / Equity0.36
Debt / FCF1.0x
YoY FCF Growth-32.5%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateJan 31, 2025
GradeA
Data SourceYahoo Finance