Ulta Beauty Inc (ULTA)

Payables 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
Payables	US$ in thousands	544,001	597,373	521,315	621,272	559,527	647,117	586,851	585,500	552,730	747,451	535,257	552,837	477,052	478,501	398,011	466,043	414,009	594,993	450,117	407,345
Payables turnover		12.55	11.09	12.48	10.20	11.02	9.04	9.68	9.36	9.52	6.67	8.95	8.17	8.81	8.93	10.87	9.63	11.39	7.73	10.07	10.86

February 3, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,826,210K ÷ $544,001K
= 12.55

Ulta Beauty Inc's payables turnover ratio has shown fluctuations over the past several reporting periods. The payables turnover ratio measures how efficiently a company is managing its trade payables by comparing the purchases made on credit to the average accounts payable during a specific period.

From February 3, 2024, to May 4, 2019, Ulta Beauty Inc's payables turnover ratio ranged from a low of 6.67 to a high of 12.55. The ratio peaked at 12.55 on February 3, 2024, suggesting that the company was able to pay off its accounts payable 12.55 times over the course of that year, indicating strong efficiency in managing its trade payables during that period.

On average, Ulta Beauty Inc's payables turnover ratio has been relatively healthy, indicating effective management of its payables. However, the fluctuations observed in the ratio indicate that the company's ability to efficiently pay off its accounts payable has varied over time, potentially influenced by changes in purchasing patterns, supplier relationships, or payment terms.

It is essential for stakeholders to continue monitoring Ulta Beauty Inc's payables turnover ratio to assess the company's liquidity, financial health, and effectiveness in managing its payables efficiently.