Ulta Beauty Inc (ULTA)

Receivables 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
Receivables	US$ in thousands	207,939	199,422	233,682	193,109	139,337
Receivables turnover		53.90	51.19	36.93	31.86	53.09

February 3, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $11,207,300K ÷ $207,939K
= 53.90

Ulta Beauty Inc's receivables turnover ratio has exhibited fluctuations over the past five fiscal years. The ratio increased to 53.90 in the most recent fiscal year, indicating that the company collected its accounts receivables approximately 53.90 times during the year. This represents an improvement from the previous year's ratio of 51.19. The significant increase in receivables turnover may suggest more efficient management of receivables, leading to quicker collection of outstanding payments from customers.

Comparing this trend with earlier years, Ulta Beauty Inc's receivables turnover ratio was lower in the fiscal year ending in January 2022 (36.93) and January 2021 (31.86). This may imply that the company took longer to collect its receivables during those periods. However, in the fiscal year ending February 2020, the receivables turnover was relatively high at 53.09, similar to the most recent year.

The recent increase in receivables turnover may reflect improved credit and collection policies, enhanced efficiency in managing receivables, or a change in customer payment behavior. It is essential for stakeholders to monitor this ratio over time to assess the company's ability to efficiently convert credit sales into cash, which can impact overall liquidity and working capital management.