Ulta Beauty Inc (ULTA)

Working capital 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
Total current assets	US$ in thousands	2,836,520	2,709,300	2,281,180	2,514,780	2,055,320
Total current liabilities	US$ in thousands	1,658,190	1,681,780	1,558,010	1,343,710	1,137,260
Working capital turnover		9.51	9.94	11.93	5.25	8.06

February 3, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,207,300K ÷ ($2,836,520K – $1,658,190K)
= 9.51

The working capital turnover ratio for Ulta Beauty Inc has exhibited fluctuations over the past five years. The ratio stood at 9.51 in Feb 3, 2024, showing a slight decrease from the previous year's figure of 9.94 in Jan 28, 2023. However, when compared to Jan 29, 2022, where it was at 11.93, the recent ratio indicates a decline in efficiency in utilizing working capital.

In Jan 30, 2021, the working capital turnover was 5.25, reflecting a significant drop compared to the previous year. Nevertheless, there was an improvement seen in Feb 1, 2020, where the ratio increased to 8.06, indicating a rebound in the company's ability to generate revenue relative to its working capital.

Overall, the trend in working capital turnover for Ulta Beauty Inc suggests varying levels of efficiency in managing its working capital over the years, with fluctuations likely influenced by changes in the company's operational and financial activities.