Ulta Beauty Inc (ULTA)

Cash ratio

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cash and cash equivalents	US$ in thousands	703,201	766,594	766,594	737,877	737,877
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,779,480	1,658,190	1,658,190	1,681,780	1,681,780
Cash ratio		0.40	0.46	0.46	0.44	0.44

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($703,201K + $—K) ÷ $1,779,480K
= 0.40

The cash ratio of Ulta Beauty Inc has shown a relatively stable trend over the past few years. As of January 31, 2025, the cash ratio stands at 0.40, indicating that for every dollar of current liabilities, the company holds $0.40 in cash or cash equivalents. While the ratio has slightly decreased from the previous year, it remains above 0.30, suggesting that Ulta Beauty Inc has a sufficient level of liquid assets to cover its short-term obligations. It is important for investors and stakeholders to continue monitoring this ratio to assess the company's ability to meet its financial obligations in the short term.