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
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 |