Ulta Beauty Inc (ULTA)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	11,207,300	10,879,770	10,729,630	10,496,930	10,208,570	9,711,190	9,368,180	9,038,280	8,630,900	8,100,210	7,656,460	6,917,260	6,151,950	6,259,170	6,389,650	6,828,250	7,398,070	7,216,870	7,094,370	6,915,980
Property, plant and equipment	US$ in thousands	1,182,340	1,117,870	1,073,140	1,019,980	1,009,270	967,039	912,017	909,543	914,476	908,665	909,507	960,440	995,795	1,042,260	1,077,820	1,148,340	1,205,520	1,233,410	1,219,950	1,205,920
Fixed asset turnover		9.48	9.73	10.00	10.29	10.11	10.04	10.27	9.94	9.44	8.91	8.42	7.20	6.18	6.01	5.93	5.95	6.14	5.85	5.82	5.74

February 3, 2024 calculation

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

Ulta Beauty Inc's fixed asset turnover ratio has displayed fluctuations over the past 20 quarters, ranging from a low of 5.74 to a high of 10.29. The company's fixed asset turnover peaked in the third quarter of fiscal year 2023 at 10.29, indicating that Ulta Beauty generated $10.29 in net sales for every dollar of fixed assets invested in the business during that period.

Overall, Ulta Beauty's fixed asset turnover has generally trended upwards over the period, with some quarters showing minor declines. The company's ability to efficiently generate sales from its fixed assets is crucial in assessing its operational efficiency and asset utilization. Investors and analysts typically view a higher fixed asset turnover positively, as it suggests that the company is effectively utilizing its fixed assets to generate revenue.

It is important to note that while a high fixed asset turnover ratio may indicate operational efficiency, it should be analyzed in conjunction with other financial metrics to provide a comprehensive assessment of Ulta Beauty's overall financial performance and efficiency in managing its fixed assets.