Ulta Beauty Inc (ULTA)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	703,201	177,782	413,962	524,596	766,594	766,594	121,811	121,811	388,627	388,627	636,449	636,449	737,877	737,877	250,628	250,628	434,226	434,226	654,486	431,560
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	40,087	—	37,002	—	—	—	—	—	—	—	—	199,939
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
Cash ratio		0.40	0.10	0.26	0.33	0.46	0.46	0.07	0.07	0.29	0.26	0.41	0.39	0.44	0.44	0.15	0.15	0.29	0.29	0.41	0.41

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 some fluctuations over the reported periods. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

From January 31, 2022, to April 30, 2022, the cash ratio remained stable at 0.41, indicating that Ulta Beauty Inc had sufficient cash to cover its short-term obligations. However, there was a decrease in the cash ratio to 0.29 by July 30, 2022, which was sustained until October 31, 2022. This decline may raise concerns about the company's liquidity position during that period.

The cash ratio improved significantly to 0.44 by January 31, 2023, suggesting an increase in available cash relative to short-term liabilities. However, the ratio decreased to 0.26 by July 29, 2023, before climbing back to 0.46 by January 31, 2024.

The cash ratio then dipped to 0.26 by July 31, 2024, and dropped further to 0.10 by October 31, 2024, indicating a potential strain on Ulta Beauty Inc's ability to meet short-term obligations with available cash.

Overall, fluctuations in the cash ratio of Ulta Beauty Inc suggest varying levels of liquidity and the need for careful monitoring of cash management practices to ensure the company's financial health and ability to meet its short-term liabilities.