Ulta Beauty Inc (ULTA)

Days of inventory on hand (DOH)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Inventory turnover		4.02	3.94	3.57	3.77	3.65
DOH	days	90.73	92.61	102.12	96.87	100.11

February 3, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.02
= 90.73

Ulta Beauty Inc's Days of Inventory on Hand (DOH) has shown a declining trend over the past five years. In the most recent fiscal year, ending on February 3, 2024, the company reported a DOH of 90.73 days, indicating that, on average, it took approximately 90 days to sell its inventory. This represents an improvement from the previous fiscal year's DOH of 92.61 days.

Comparing the current DOH to the data from previous years, it is evident that Ulta Beauty has been more efficient in managing its inventory levels. The DOH figures for the last three years (2022, 2023, and 2024) have shown a decreasing trend, suggesting that the company has improved its inventory management practices, potentially leading to lower carrying costs and better cash flow management.

While the DOH figures for 2021 and 2020 were slightly higher, indicating slower inventory turnover rates during those periods, the overall trajectory demonstrates a positive trend. The decreasing trend in DOH reflects the company's efforts to optimize inventory levels and align them more closely with demand, which can enhance operational efficiency and profitability.

Overall, the declining trend in Ulta Beauty Inc's Days of Inventory on Hand over the past five years indicates an improvement in inventory management efficiency, which could positively impact the company's financial performance and working capital management.