Ulta Beauty Inc (ULTA)

Working capital turnover

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Revenue	US$ in thousands	11,295,700	11,207,300	11,207,300	10,208,600	10,208,600
Total current assets	US$ in thousands	3,028,810	2,836,520	2,836,520	2,709,300	2,709,300
Total current liabilities	US$ in thousands	1,779,480	1,658,190	1,658,190	1,681,780	1,681,780
Working capital turnover		9.04	9.51	9.51	9.94	9.94

January 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,295,700K ÷ ($3,028,810K – $1,779,480K)
= 9.04

The working capital turnover for Ulta Beauty Inc has shown a consistent trend over the past few years. As of January 28, 2023, and January 31, 2023, the working capital turnover ratio stood at 9.94. There was a slight decrease in this ratio to 9.51 as of January 31, 2024, and February 3, 2024. The latest data available, as of January 31, 2025, shows a further decline in the working capital turnover ratio to 9.04.

The working capital turnover ratio indicates how efficiently Ulta Beauty is managing its working capital to generate sales. A higher turnover ratio suggests that the company is effectively utilizing its working capital to generate revenue. The consistent values around 9.5 in the recent years indicate that Ulta Beauty has been able to maintain a relatively stable level of efficiency in this aspect. However, the slight decline in the ratio over time may signal a need for the company to optimize its working capital management strategies to improve efficiency in generating sales.

Overall, while Ulta Beauty Inc has maintained a relatively stable working capital turnover ratio, there may be room for improvement to enhance efficiency in utilizing working capital to drive sales in the future.