Ulta Beauty Inc (ULTA)

Payables turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	6,826,200	6,164,070	5,262,340	4,202,790	4,717,000
Payables	US$ in thousands	544,001	559,527	552,730	477,052	414,009
Payables turnover		12.55	11.02	9.52	8.81	11.39

February 3, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $6,826,200K ÷ $544,001K
= 12.55

Ulta Beauty Inc's payables turnover ratio has shown a positive trend over the past five fiscal years. The ratio has increased steadily from 8.81 in January 30, 2021, to 12.55 in February 3, 2024. This indicates that Ulta Beauty Inc has been managing its accounts payables more effectively, taking fewer days to pay off its suppliers.

A higher payables turnover ratio is generally favorable as it shows that the company is efficiently managing its short-term obligations. Ulta Beauty Inc's improved payables turnover ratio suggests that the company may have negotiated better payment terms with its suppliers, optimized its supply chain operations, or improved its inventory management.

Overall, the increasing trend in Ulta Beauty Inc's payables turnover ratio reflects positively on the company's liquidity management and operational efficiency in managing its accounts payables.