Ulta Beauty Inc (ULTA)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.51 | 4.02 | 3.92 | 3.84 | 3.94 |
| Receivables turnover | — | 53.90 | — | — | 51.19 |
| Payables turnover | — | 12.55 | — | — | 11.02 |
| Working capital turnover | 9.04 | 9.51 | 9.51 | 9.94 | 9.94 |
Ulta Beauty Inc's activity ratios provide insights into how efficiently the company is managing its resources.
1. Inventory Turnover: Ulta's inventory turnover ratio fluctuated over the years, from 3.84 in January 31, 2023 to 4.02 in February 3, 2024. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently, which can be positive as it reduces the risk of obsolete inventory.
2. Receivables Turnover: Ulta's receivables turnover ratio was not provided for certain years, but it was 51.19 in January 28, 2023 and 53.90 in February 3, 2024. A higher receivables turnover ratio suggests that Ulta is collecting its receivables more quickly, which is favorable for cash flow management.
3. Payables Turnover: Ulta's payables turnover ratio was not available for certain years, but it was 11.02 in January 28, 2023 and 12.55 in February 3, 2024. A higher payables turnover ratio indicates that Ulta is paying its suppliers faster, which may suggest good relationships with suppliers or taking advantage of discounts.
4. Working Capital Turnover: Ulta's working capital turnover ratio decreased slightly from 9.94 in January 28, 2023 to 9.04 in January 31, 2025. This ratio measures how efficiently the company is generating revenue relative to its working capital. A declining trend in this ratio may indicate less efficiency in utilizing working capital to generate sales.
Overall, Ulta Beauty Inc has demonstrated efficiency in managing its inventory turnover, receivables turnover, and payables turnover, with some fluctuations over the years. Monitoring these activity ratios can help stakeholders assess the company's operational effectiveness and financial performance.
Average number of days
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 103.99 | 90.73 | 93.15 | 94.95 | 92.61 |
| Days of sales outstanding (DSO) | days | — | 6.77 | — | — | 7.13 |
| Number of days of payables | days | — | 29.09 | — | — | 33.13 |
Ulta Beauty Inc's activity ratios provide insight into its efficiency in managing inventory, collecting receivables, and paying its suppliers.
1. Days of Inventory on Hand (DOH):
- Ulta Beauty's DOH ranged from 90.73 to 103.99 days over the past five years, with an average of approximately 95 days. This indicates that, on average, Ulta holds inventory for around 95 days before selling it. The lower the DOH, the better, as it suggests faster inventory turnover and less tied-up capital in inventory.
2. Days of Sales Outstanding (DSO):
- Ulta Beauty's DSO data is incomplete, with values only available for two out of the five years. The available values ranged from 6.77 to 7.13 days, indicating that Ulta collects payment from customers in approximately 7 days on average. Lower DSO is favorable as it signifies faster collections and efficient credit management.
3. Number of Days of Payables:
- Similar to DSO, the data for Ulta's Number of Days of Payables is also incomplete, available for only two out of the five years. The values ranged from 29.09 to 33.13 days, indicating that Ulta takes approximately 29 to 33 days to pay its suppliers. A longer period indicates better cash flow management, as longer payment terms allow for the retention of cash for other uses before settling payables.
Overall, when looking at Ulta Beauty Inc's activity ratios, it appears the company has maintained a reasonable level of efficiency in managing inventory turnover and payables, but additional data on DSO is needed to fully assess its receivables management practices.
See also:
Long-term
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | 9.48 | — | 10.11 | 10.11 |
| Total asset turnover | 1.88 | 1.96 | 1.96 | 1.90 | 1.90 |
Ulta Beauty Inc's Fixed Asset Turnover ratio remained consistent at around 10.11 for January 28, 2023 and January 31, 2023. However, there was a slight decrease to 9.48 on February 3, 2024. Interestingly, data for January 31, 2024 and January 31, 2025 was unavailable.
In terms of Total Asset Turnover, Ulta Beauty Inc's ratio was fairly stable at 1.90 for January 28, 2023 and January 31, 2023. It then slightly increased to 1.96 by January 31, 2024 and remained at the same level on February 3, 2024. However, there was a slight decrease to 1.88 by January 31, 2025.
Overall, both ratios indicate how efficiently Ulta Beauty Inc is utilizing its assets to generate sales. The Fixed Asset Turnover specifically measures how well the company is using its fixed assets to generate revenue, while the Total Asset Turnover ratio gives an indication of how efficiently all assets are being used to generate sales.