Ulta Beauty Inc (ULTA)

Fixed asset turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Revenue	US$ in thousands	11,207,300	10,208,600	8,630,890	6,151,950	7,398,070
Property, plant and equipment	US$ in thousands	1,182,340	1,009,270	914,476	995,795	1,205,520
Fixed asset turnover		9.48	10.11	9.44	6.18	6.14

February 3, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,207,300K ÷ $1,182,340K
= 9.48

Ulta Beauty Inc's fixed asset turnover has shown a consistent trend of improvement over the past five years, increasing from 6.14 in February 2020 to 9.48 in February 2024. This indicates that the company is generating more sales revenue per dollar of fixed assets invested. The peak of 10.11 in January 2023 suggests that the company was able to efficiently utilize its fixed assets to generate sales during that period.

A high fixed asset turnover ratio typically indicates effective asset utilization and operational efficiency. Ulta Beauty Inc's improving fixed asset turnover ratio implies that the company has been successful in optimizing the use of its fixed assets to drive revenue growth. This trend is positive as it reflects the company's ability to generate sales efficiently relative to its investment in fixed assets.