Ulta Beauty Inc (ULTA)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	6,826,210	6,626,750	6,505,860	6,338,610	6,164,080	5,851,870	5,682,190	5,482,480	5,262,330	4,987,940	4,788,150	4,517,912	4,202,787	4,274,147	4,326,717	4,488,425	4,717,000	4,601,830	4,530,483	4,422,533
Inventory	US$ in thousands	1,696,780	2,321,310	1,815,540	1,751,240	1,563,920	2,114,670	1,666,130	1,570,550	1,472,340	1,916,340	1,443,680	1,353,560	1,115,360	1,439,100	1,368,540	1,340,570	1,293,700	1,616,920	1,316,000	1,250,040
Inventory turnover		4.02	2.85	3.58	3.62	3.94	2.77	3.41	3.49	3.57	2.60	3.32	3.34	3.77	2.97	3.16	3.35	3.65	2.85	3.44	3.54

February 3, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,826,210K ÷ $1,696,780K
= 4.02

Ulta Beauty Inc's inventory turnover ratio has demonstrated fluctuations over the surveyed periods. The inventory turnover ratio for Ulta Beauty Inc ranged from a low of 2.60 to a high of 4.02. Overall, the company's inventory turnover ratio has shown a relatively stable performance, with an average turnover ratio of approximately 3.31 over the periods analyzed.

A higher inventory turnover ratio indicates that the company is selling its inventory more frequently within a specific period, which could suggest effective inventory management and faster product movement. Conversely, a lower turnover ratio may indicate excess inventory levels or slower sales, potentially leading to increased carrying costs and the risk of obsolescence.

It is essential for Ulta Beauty Inc to maintain an optimal balance in inventory levels to ensure efficient operations and profitability. Monitoring and improving inventory turnover can help the company manage working capital effectively, minimize carrying costs, and enhance overall operational efficiency.