Ulta Beauty Inc (ULTA)

Working capital 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
Revenue (ttm)	US$ in thousands	11,207,300	10,879,770	10,729,630	10,496,930	10,208,570	9,711,190	9,368,180	9,038,280	8,630,900	8,100,210	7,656,460	6,917,260	6,151,950	6,259,170	6,389,650	6,828,250	7,398,070	7,216,870	7,094,370	6,915,980
Total current assets	US$ in thousands	2,836,520	2,792,040	2,519,250	2,685,980	2,709,300	2,745,820	2,442,910	2,531,870	2,281,180	2,833,690	2,494,930	2,563,760	2,514,780	2,245,010	2,799,190	2,728,820	2,055,320	2,097,470	1,920,600	2,019,330
Total current liabilities	US$ in thousands	1,658,190	1,836,940	1,491,170	1,633,900	1,681,780	1,697,770	1,502,050	1,599,750	1,558,010	1,624,120	1,381,530	1,522,760	1,343,710	1,230,340	1,061,330	1,096,180	1,137,260	1,256,920	1,064,930	1,045,600
Working capital turnover		9.51	11.39	10.44	9.98	9.94	9.27	9.96	9.70	11.93	6.70	6.88	6.64	5.25	6.17	3.68	4.18	8.06	8.59	8.29	7.10

February 3, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (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 shown fluctuations over the past 20 periods. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

From February 2024 to November 2019, the working capital turnover ratio ranged between 3.68 and 11.93. The ratio peaked at 11.93 in January 2022, suggesting that the company generated $11.93 in sales for every dollar of working capital invested. On the other hand, the lowest ratio of 3.68 was recorded in August 2020, indicating a lower level of efficiency in working capital utilization.

The general trend seems to show some variation in working capital efficiency, with occasional increases and decreases in the ratio. However, it is essential to further analyze the underlying reasons for these fluctuations and whether any strategic changes or external factors have influenced the company's working capital management. Additionally, comparing the working capital turnover ratio with industry benchmarks or competitors could provide more insights into Ulta Beauty Inc's performance in utilizing its working capital effectively.