Ulta Beauty Inc (ULTA)

Days of sales outstanding (DSO)

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Receivables turnover		53.90	53.63	61.51	55.17	51.19	48.48	51.90	46.89	36.93	47.87	49.58	44.82	31.86	45.93	49.92	76.99	53.09	63.93	66.14	62.85
DSO	days	6.77	6.81	5.93	6.62	7.13	7.53	7.03	7.78	9.88	7.62	7.36	8.14	11.46	7.95	7.31	4.74	6.87	5.71	5.52	5.81

February 3, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 53.90
= 6.77

Analyzing the Days of Sales Outstanding (DSO) for Ulta Beauty Inc over the specified period reveals fluctuations in the efficiency of the company in collecting its accounts receivable. The DSO metric represents the average number of days it takes for a company to collect payment after a sale is made.

On Feb 3, 2024, the DSO stood at 6.77 days, showing a relatively short collection period, indicating efficient accounts receivable management. However, this figure had increased slightly from the previous period ending Oct 28, 2023, where the DSO was 6.81 days.

The DSO trend in 2023 exhibited variability, with values ranging from 5.93 days in Jul 29, 2023, to 7.13 days in Jan 28, 2023. These fluctuations suggest potential challenges in timely collections during certain quarters, which could impact cash flow.

Notably, the DSO increased significantly to 11.46 days on Jan 30, 2021, indicating a potential delay in collections during that period. Subsequently, Ulta Beauty Inc managed to reduce the DSO to 4.74 days by May 2, 2020, representing a remarkable improvement in accounts receivable management efficiency.

Overall, while Ulta Beauty Inc has demonstrated the ability to collect payments in a relatively short period, the fluctuating DSO values highlight the importance of continuous monitoring and improvement in accounts receivable processes to maintain healthy cash flows and working capital management.