LULUNEUTRAL

LULU Quick Ratio Analysis

0.94x

Updated 81h ago·SEC filings & market data

Key Takeaway

The Quick Ratio measures a company’s ability to cover its short-term obligations using its most liquid assets (cash, marketable securities, and receivables, but excluding inventory).

Sector Performance

65th percentile

LULU

0.94x

Sector Median

0.72x

Sector Avg

2.70x

Prior Period

0.68x(Jun 2026)

↑ Improving

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Deep Analysis

The Quick Ratio measures a company’s ability to cover its short-term obligations using its most liquid assets (cash, marketable securities, and receivables, but excluding inventory).

At 0.94x, LULU has $0.94 in liquid assets for every $1 of current liabilities — just below the 1.0x threshold that indicates full coverage. This ratio places LULU above the sector median of 0.71x, falling in the 66th percentile of its peer group. The year-over-year change is not available, but quarter-over-quarter the quick ratio improved by +38.2%, rising from 0.68x to 0.94x. The combination of a level above the sector median and a sharp quarterly improvement suggests that short-term liquidity risk has declined, though the ratio remains under 1.0x. This improvement is a positive factor, but the still-sub‑1.0x reading keeps the liquidity picture mixed, which aligns with the overall NEUTRAL verdict.

Frequently Asked Questions

What does the Quick Ratio tell investors about LULU?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

Who are LULU's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: OMC (0.67x), KO (0.66x), SIEGY (0.64x), TAP (0.60x), LW (0.60x).

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Learn More About Quick Ratio

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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

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.