LULUNEUTRAL

LULU Current Ratio Analysis

2.23x

Updated 81h ago·SEC filings & market data

Key Takeaway

The current ratio of 2.23x means LULU has $2.23 in current assets for every $1 of current liabilities, indicating it can comfortably cover short-term obligations.

Sector Performance

81th percentile

LULU

2.23x

Sector Median

1.26x

Sector Avg

2.61x

Prior Period

1.36x(Jun 2026)

↑ Improving

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Deep Analysis

The current ratio of 2.23x means LULU has $2.23 in current assets for every $1 of current liabilities, indicating it can comfortably cover short-term obligations.

This is well above the sector median of 1.20x, placing LULU in the 82nd percentile among peers. The year-over-year change is not available, but the quarter-over-quarter change shows a sharp increase of +64.0% from the prior quarter’s 1.36x. The combination of a high ratio and a strong upward trend suggests very low short-term liquidity risk, but the rapid rise could reflect an unusual buildup of cash or inventory that may not be sustainable. This metric supports the overall NEUTRAL verdict because while liquidity is strong, the extreme quarterly jump may warrant caution until the trend stabilizes.

Frequently Asked Questions

What does the Current Ratio tell investors about LULU?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

Who are LULU's closest peers by Current Ratio?

The closest peers by Current Ratio include: NWS (1.62x), ESTC (1.68x), DXCM (1.73x), GLW (1.81x), TEL (1.88x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.