Question
LULULEMON: Need the following ratios to be calculated using the financial sheets copied at the bottom. Each ratio needs to be calculated using the information
LULULEMON:
Need the following ratios to be calculated using the financial sheets copied at the bottom. Each ratio needs to be calculated using the information from 2016. Each ratio also needs to be broken down and illustrated by the step by step process. Finally, please include any and all observations for each ratio and analysis.
1) Common Size analysis
2) Common size vertical analysis & graph
3) Current Ratio
4) Quick Ratio
5) Cash Ratio
6) Inventory Turnover
7) Receivables Turnover
8) Total Asset Turnover
9) Fixed Asset Turnover
10) Gross profit margin
11) Operating Profit margin
12) Net profit margin
13) Return on total assets
14) return on equity
15) basic earning power
16) Deb/net worth ratio
17) debt ratio
18) DuPont System
19) Times-interest-earned
Financial Statements:
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 29, 2017 | Jan. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 734,846 | $ 501,482 |
Accounts receivable | 9,200 | 13,108 |
Inventories | 298,432 | 284,009 |
Prepaid and receivable income taxes | 81,190 | 91,453 |
Other prepaid expenses and other current assets | 39,069 | 26,987 |
Total current assets | 1,162,737 | 917,039 |
Property and equipment, net | 423,499 | 349,605 |
Goodwill and intangible assets, net | 24,557 | 24,777 |
Deferred income tax assets | 26,256 | 11,802 |
Other non-current assets | 20,492 | 10,854 |
Total assets | 1,657,541 | 1,314,077 |
Current liabilities | ||
Accounts payable | 24,846 | 10,381 |
Accrued inventory liabilities | 8,601 | 25,451 |
Accrued compensation and related expenses | 55,238 | 43,524 |
Income taxes payable | 30,290 | 37,736 |
Unredeemed gift card liability | 70,454 | 57,736 |
Other accrued liabilities | 52,020 | 50,676 |
Total current liabilities | 241,449 | 225,504 |
Deferred income tax liabilities | 7,262 | 10,759 |
Other non-current liabilities | 48,857 | 50,332 |
Total liabilities | 297,568 | 286,595 |
Stockholders' equity | ||
Undesignated preferred stock, $0.01 par value: 5,000 shares authorized; none issued and outstanding | 0 | 0 |
Exchangeable stock, no par value: 60,000 shares authorized; 9,781 and 9,804 issued and outstanding | 0 | 0 |
Special voting stock, $0.000005 par value: 60,000 shares authorized; 9,781 and 9,804 issued and outstanding | 0 | 0 |
Common stock, $0.005 par value: 400,000 shares authorized; 127,304 and 127,482 issued and outstanding | 637 | 637 |
Additional paid-in capital | 266,622 | 245,533 |
Retained earnings | 1,294,214 | 1,019,515 |
Accumulated other comprehensive loss | (201,500) | (238,203) |
Total stockholders' equity | 1,359,973 | 1,027,482 |
Total liabilities and stockholders' equity | $ 1,657,541 | $ 1,314,077 |
Income statement:
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 29, 2017 | Oct. 30, 2016 | Jul. 31, 2016 | May 01, 2016 | Jan. 31, 2016 | Nov. 01, 2015 | Aug. 02, 2015 | May 03, 2015 | Jan. 29, 2017 | Jan. 31, 2016 | Feb. 01, 2015 | |
Income Statement [Abstract] | |||||||||||
Net revenue | $ 789,940 | $ 544,416 | $ 514,520 | $ 495,516 | $ 704,276 | $ 479,693 | $ 453,010 | $ 423,544 | $ 2,344,392 | $ 2,060,523 | $ 1,797,213 |
Cost of goods sold | 362,041 | 265,990 | 260,359 | 256,385 | 349,809 | 254,896 | 240,985 | 217,667 | 1,144,775 | 1,063,357 | 883,033 |
Gross profit | 427,899 | 278,426 | 254,161 | 239,131 | 354,467 | 224,797 | 212,025 | 205,877 | 1,199,617 | 997,166 | 914,180 |
Selling, general and administrative expenses | 231,270 | 185,451 | 180,202 | 181,542 | 188,184 | 156,619 | 145,446 | 137,841 | 778,465 | 628,090 | 538,147 |
Income from operations | 196,629 | 92,975 | 73,959 | 57,589 | 166,283 | 68,178 | 66,579 | 68,036 | 421,152 | 369,076 | 376,033 |
Other income (expense), net | 857 | 628 | 578 | (486) | 938 | (2,890) | 842 | 529 | 1,577 | (581) | 7,102 |
Income before income tax expense | 197,486 | 93,603 | 74,537 | 57,103 | 167,221 | 65,288 | 67,421 | 68,565 | 422,729 | 368,495 | 383,135 |
Income tax expense | 61,351 | 25,318 | 20,912 | 11,767 | 49,805 | 12,135 | 19,753 | 20,755 | 119,348 | 102,448 | 144,102 |
Net income | 136,135 | 68,285 | 53,625 | 45,336 | 117,416 | 53,153 | 47,668 | 47,810 | 303,381 | 266,047 | 239,033 |
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustment | 15,941 | (24,748) | (28,052) | 73,562 | (47,369) | (665) | (39,368) | 22,606 | 36,703 | (64,796) | (105,339) |
Comprehensive income | $ 152,076 | $ 43,537 | $ 25,573 | $ 118,898 | $ 70,047 | $ 52,488 | $ 8,300 | $ 70,416 | $ 340,084 | $ 201,251 | $ 133,694 |
Basic earnings per share (in dollars per share) | $ 0.99 | $ 0.50 | $ 0.39 | $ 0.33 | $ 0.85 | $ 0.38 | $ 0.34 | $ 0.34 | $ 2.21 | $ 1.90 | $ 1.66 |
Diluted earnings per share (in dollars per share) | $ 0.99 | $ 0.50 | $ 0.39 | $ 0.33 | $ 0.85 | $ 0.38 | $ 0.34 | $ 0.34 | $ 2.21 | $ 1.89 | $ 1.66 |
Basic weighted-average number of shares outstanding (in shares) | 137,086 | 140,365 | 143,935 | ||||||||
Diluted weighted-average number of shares outstanding (in shares) | 137,302 | 140,610 | 144,298 |
Cash Flow Sheet:
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2017 | Jan. 31, 2016 | Feb. 01, 2015 | |
Cash flows from operating activities | |||
Net income | $ 303,381 | $ 266,047 | $ 239,033 |
Items not affecting cash | |||
Depreciation and amortization | 87,697 | 73,383 | 58,364 |
Stock-based compensation expense | 16,822 | 10,356 | 8,269 |
Derecognition of unredeemed gift card liability | (4,548) | (3,647) | (1,468) |
Deferred income taxes | (17,563) | 11,142 | 2,087 |
Tax benefits from stock-based compensation | (1,273) | 1,202 | (413) |
Changes in operating assets and liabilities | |||
Inventories | (5,403) | (83,286) | (26,806) |
Prepaid and receivable income taxes | 11,537 | (52,110) | (15,234) |
Other prepaid expenses and other current assets | (6,730) | (3,816) | (6,444) |
Accounts payable | 14,080 | 1,247 | (2,198) |
Accrued inventory liabilities | (18,900) | 5,198 | 8,276 |
Accrued compensation and related expenses | 9,943 | 14,937 | 11,561 |
Income taxes payable | (10,020) | 19,470 | 19,304 |
Unredeemed gift card liability | 16,010 | 16,574 | 11,326 |
Other accrued liabilities | 467 | 19,563 | 3,788 |
Other non-current assets and liabilities | (10,381) | 2,480 | 5,004 |
Net cash provided by operating activities | 385,119 | 298,740 | 314,449 |
Cash flows from investing activities | |||
Purchase of property and equipment | (149,511) | (143,487) | (119,733) |
Net cash used in investing activities | (149,511) | (143,487) | (119,733) |
Cash flows from financing activities | |||
Proceeds from settlement of stock-based compensation | 6,907 | 4,704 | 2,913 |
Tax benefits from stock-based compensation | 1,273 | (1,202) | 413 |
Taxes paid related to net share settlement of stock-based compensation | (3,268) | (2,857) | (4,972) |
Repurchase of common stock | (29,327) | (274,193) | (147,431) |
Registration fees associated with prospectus supplement | 0 | (145) | 0 |
Deferred debt financing costs | (923) | 0 | 0 |
Net cash used in financing activities | (25,338) | (273,693) | (149,077) |
Effect of exchange rate changes on cash | 23,094 | (44,557) | (79,809) |
Increase (decrease) in cash and cash equivalents | 233,364 | (162,997) | (34,170) |
Cash and cash equivalents, beginning of period | 501,482 | 664,479 | 698,649 |
Cash and cash equivalents, end of period | $ 734,846 | $ 501,482 | $ 664,479 |
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