Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
lululemon athletica inc., ROIC calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 1,928,398) | 1,622,788) | 933,695) | 1,040,291) | 680,052) | 711,860) | |
| Invested capital2 | 6,507,336) | 5,978,501) | 4,526,979) | 3,909,051) | 3,672,427) | 3,008,240) | |
| Performance Ratio | |||||||
| ROIC3 | 29.63% | 27.14% | 20.63% | 26.61% | 18.52% | 23.66% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Nike Inc. | — | 23.25% | 24.58% | 26.29% | 26.11% | 12.98% | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 NOPAT. See details »
2 Invested capital. See details »
3 2025 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 1,928,398 ÷ 6,507,336 = 29.63%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | lululemon athletica inc. ROIC improved from 2023 to 2024 and from 2024 to 2025. |
Decomposition of ROIC
lululemon athletica inc., decomposition of ROIC
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the increase in return on invested capital (ROIC) over 2025 year is the increase in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
lululemon athletica inc., OPM calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 1,928,398) | 1,622,788) | 933,695) | 1,040,291) | 680,052) | 711,860) | |
| Add: Cash operating taxes2 | 717,311) | 664,080) | 475,339) | 370,595) | 202,048) | 232,950) | |
| Net operating profit before taxes (NOPBT) | 2,645,709) | 2,286,867) | 1,409,034) | 1,410,885) | 882,100) | 944,811) | |
| Net revenue | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | 3,979,296) | |
| Add: Increase (decrease) in unredeemed gift card liability | 1,873) | 55,001) | 43,283) | 52,347) | 35,435) | 21,001) | |
| Adjusted net revenue | 10,589,999) | 9,674,279) | 8,153,801) | 6,308,964) | 4,437,314) | 4,000,297) | |
| Profitability Ratio | |||||||
| OPM3 | 24.98% | 23.64% | 17.28% | 22.36% | 19.88% | 23.62% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Nike Inc. | — | 12.90% | 12.25% | 14.71% | 15.45% | 8.66% | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
OPM = 100 × NOPBT ÷ Adjusted net revenue
= 100 × 2,645,709 ÷ 10,589,999 = 24.98%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | lululemon athletica inc. OPM improved from 2023 to 2024 and from 2024 to 2025. |
Turnover of Capital (TO)
lululemon athletica inc., TO calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenue | 10,588,126) | 9,619,278) | 8,110,518) | 6,256,617) | 4,401,879) | 3,979,296) | |
| Add: Increase (decrease) in unredeemed gift card liability | 1,873) | 55,001) | 43,283) | 52,347) | 35,435) | 21,001) | |
| Adjusted net revenue | 10,589,999) | 9,674,279) | 8,153,801) | 6,308,964) | 4,437,314) | 4,000,297) | |
| Invested capital1 | 6,507,336) | 5,978,501) | 4,526,979) | 3,909,051) | 3,672,427) | 3,008,240) | |
| Efficiency Ratio | |||||||
| TO2 | 1.63 | 1.62 | 1.80 | 1.61 | 1.21 | 1.33 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Nike Inc. | — | 2.32 | 2.51 | 2.21 | 2.12 | 1.96 | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 Invested capital. See details »
2 2025 Calculation
TO = Adjusted net revenue ÷ Invested capital
= 10,589,999 ÷ 6,507,336 = 1.63
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | lululemon athletica inc. TO deteriorated from 2023 to 2024 but then slightly improved from 2024 to 2025. |
Effective Cash Tax Rate (CTR)
lululemon athletica inc., CTR calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 1,928,398) | 1,622,788) | 933,695) | 1,040,291) | 680,052) | 711,860) | |
| Add: Cash operating taxes2 | 717,311) | 664,080) | 475,339) | 370,595) | 202,048) | 232,950) | |
| Net operating profit before taxes (NOPBT) | 2,645,709) | 2,286,867) | 1,409,034) | 1,410,885) | 882,100) | 944,811) | |
| Tax Rate | |||||||
| CTR3 | 27.11% | 29.04% | 33.74% | 26.27% | 22.91% | 24.66% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Nike Inc. | — | 22.36% | 20.13% | 19.12% | 20.21% | 23.56% | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 717,311 ÷ 2,645,709 = 27.11%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | lululemon athletica inc. CTR decreased from 2023 to 2024 and from 2024 to 2025. |