Ulta Beauty Inc (ULTA)

Days of inventory on hand (DOH)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Inventory turnover		3.51	2.95	3.83	3.98	4.37	3.87	2.61	2.65	3.43	3.70	4.10	3.99	4.23	3.92	2.60	2.61	3.51	3.71	3.83	3.88
DOH	days	103.99	123.89	95.25	91.78	83.45	94.29	139.67	137.80	106.35	98.77	88.93	91.52	86.32	93.04	140.60	139.86	104.05	98.44	95.30	94.08

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.51
= 103.99

Ulta Beauty Inc's Days of Inventory on Hand (DOH) has shown fluctuating trends over the past few years. The company's DOH ranged from around 86 to 140 days during the period from January 2022 to January 2025.

The DOH measures how many days a company holds its inventory before selling it, indicating efficiency in managing inventory levels. A lower DOH generally implies faster inventory turnover and better liquidity, while a higher DOH may suggest slow-moving inventory or potential overstocking issues.

Ulta Beauty Inc experienced a peak in its DOH in October 2023, reaching around 140 days, which could indicate potential challenges in inventory management during that period. However, the company managed to reduce its DOH to around 83 days by February 2024, showing efforts to streamline inventory processes.

Overall, investors and stakeholders should closely monitor Ulta Beauty Inc's DOH to assess its inventory management effectiveness and operational efficiency, as changes in this ratio can impact the company's profitability and cash flow.