Using the company’s financial statements, calculate and evaluate the firm’s sustainable growth rate (SGR) for the last 3 years, and summarize your findings.

Lululemon Athletica Inc., a multi-national athletic apparel company, specializes in accessories and clothing inspired by yoga. After reviewing the company’s most recent annual report, I have calculated and evaluated the firm’s sustainable growth rate (SGR) for the last 3 years.

Lululemon’s sustainable growth rate over the last 3 years can be calculated using the return on equity and the dividend payout ratio (DPR) taken together. Lululemon’s ROE was 23%, 31%, and 32% for 2018, 2019, 2020. DPRs for the same period were 20, 8.9%, and 22.1%. SGR =


2018: 23.4% – 20.8% = 2.6% 2019: 31.5% – 21.9% = 9.6% 2020: 32.7% – 22.1% = 10.6%

Therefore, Lululemon’s sustainable growth rate for the last 3 years has been around 10%.

If a firm grows at an unsustainable rate, it can lead to financial problems, including over-extension, difficulty financing future growth and diluted earnings per share. If a company’s growth rate exceeds the sustainable rate, they may be forced to use debt financing in order to pay for the excess growth. This is risky and can cause financial trouble. However, companies that grow at lower rates than the sustainable rate may have to pay stockholders more in share buybacks, or higher dividends.

In Lululemon’s case, it has grown at a rate above the sustainable rate, which is an indication of its strong performance and efficient use of resources. Lululemon has funded its growth using a mix of equity financing and retained earnings, which has allowed it to maintain a solid balance sheet. In addition, stockholders have been given increased dividends as well as share buybacks.

How do you place an order?

It takes a few steps to place an order with Us:

  • The first step is to place your order. You will need to provide us with some basic information about your project.
  • Once you have placed your order, you will be taken to our secure payment page.
  • Once we receive your order, we will carefully review it and match you with a writer who has the skills and experience.
  • Stay in contact with the writer and discuss vital details of research.
  • Your completed proposal will be delivered via email within the specified deadline.

You are secure when using our service

It's critical for each client to feel secure. As a result, we at Research Proposal Writing take precautions to secure your data.

Financial security You may securely pay for your purchase using a variety of secure payment methods.
Personal security The personal information of our clients is secure. Nobody else will have access to it.
Academic security We use a specialized program to check every completed paper to ensure that we deliver no-plagiarism samples.
Web security This website is safe from unauthorized breaches. We maintain our privacy management in line with the latest laws and regulations.

You can get help placing your order. If you have any questions about our services, please contact us. Our support staff is accessible 24 hours a day, 7 days a week.

If you're still looking for a way to improve your grades and hire expert writers, we've got you covered. Place an order on our website, and we'll help you with any paperwork you want. We will exceed your expectations.

Order now Get a quote