Ulta Beauty Inc (ULTA)

Working capital turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Revenue (ttm)	US$ in thousands	11,295,660	11,362,340	12,386,540	12,323,380	12,086,460	11,061,970	10,037,480	10,182,810	10,328,140	11,025,100	11,722,060	11,426,590	11,131,120	10,201,460	9,271,800	9,278,910	9,669,510	10,101,790	9,800,460	9,450,340
Total current assets	US$ in thousands	3,028,810	2,954,860	2,798,740	2,760,630	2,836,520	2,836,520	2,792,040	2,792,040	2,519,250	2,519,250	2,685,980	2,685,980	2,709,300	2,709,300	2,745,820	2,745,820	2,442,910	2,442,910	2,531,870	2,281,180
Total current liabilities	US$ in thousands	1,779,480	1,816,410	1,591,230	1,572,720	1,658,190	1,658,190	1,836,940	1,836,940	1,491,170	1,491,170	1,633,900	1,633,900	1,681,780	1,681,780	1,697,770	1,697,770	1,502,050	1,502,050	1,599,750	1,558,010
Working capital turnover		9.04	9.98	10.26	10.37	10.26	9.39	10.51	10.66	10.05	10.72	11.14	10.86	10.83	9.93	8.85	8.85	10.28	10.74	10.51	13.07

January 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,295,660K ÷ ($3,028,810K – $1,779,480K)
= 9.04

Ulta Beauty Inc's working capital turnover has shown fluctuations over the given periods. The highest working capital turnover of 13.07 was observed on January 31, 2022, indicating that Ulta Beauty efficiently utilized its working capital to generate revenue during that period.

Subsequently, there was a gradual decline in working capital turnover, with the lowest point of 8.85 recorded on October 29 and 31, 2022. This decline suggests a potential inefficiency in utilizing working capital during those months.

However, the company improved its working capital turnover over the following periods, reaching a peak of 11.14 on April 30, 2023, indicating a better utilization of working capital for revenue generation.

Overall, Ulta Beauty maintained an average working capital turnover ratio between 9 and 11, reflecting moderate efficiency in converting working capital into revenue. Monitoring this ratio over time can provide insights into the company's operational efficiency and financial performance.