Ulta Beauty Inc (ULTA)

Cash ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash and cash equivalents	US$ in thousands	766,594	737,877	431,560	1,046,050	392,325
Short-term investments	US$ in thousands	—	—	199,939	0	110,000
Total current liabilities	US$ in thousands	1,658,190	1,681,780	1,558,010	1,343,710	1,137,260
Cash ratio		0.46	0.44	0.41	0.78	0.44

February 3, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($766,594K + $—K) ÷ $1,658,190K
= 0.46

Ulta Beauty Inc's cash ratio has exhibited some variability over the past five years. The ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

In the most recent fiscal year ending February 3, 2024, Ulta Beauty Inc's cash ratio stood at 0.46. This indicates that the company had $0.46 in cash and cash equivalents for every dollar of current liabilities.

Comparing this to the previous four years, the cash ratio has generally been at a moderate level, ranging from 0.41 to 0.78.

The notable decrease in the cash ratio from 0.78 in January 30, 2021 to 0.41 in January 29, 2022 may suggest a potential liquidity constraint during that period. However, the ratio improved in the subsequent year, reaching 0.44 in both January 28, 2023 and February 1, 2020, before increasing to 0.46 in the most recent year.

Overall, Ulta Beauty Inc's cash ratio has shown some fluctuations, but maintaining a ratio above 1.0 would indicate a stronger ability to cover short-term obligations solely with cash. It is important for stakeholders to monitor changes in the cash ratio to assess the company's liquidity position and financial health.