Ulta Beauty Inc (ULTA)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	766,594	121,811	388,627	636,449	737,877	250,628	434,226	654,486	431,560	605,053	770,144	947,456	1,046,050	560,902	1,157,320	1,043,540	392,325	208,843	177,398	326,831
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	0	0	—	—	110,000	110,000	0	150,000	195,000
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
Cash ratio		0.46	0.07	0.26	0.39	0.44	0.15	0.29	0.41	0.28	0.37	0.56	0.62	0.78	0.46	1.09	1.05	0.44	0.17	0.31	0.50

February 3, 2024 calculation

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

The cash ratio for Ulta Beauty Inc has shown some fluctuations over the past several quarters. The cash ratio, which measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents, has ranged from a low of 0.07 to a high of 1.09.

In recent quarters, the cash ratio has generally improved, indicating that Ulta Beauty Inc has been increasing its liquidity and strengthening its ability to meet its short-term obligations using cash on hand. However, there have been periods where the cash ratio decreased, suggesting potential fluctuations in cash availability or changes in the company's short-term liabilities.

Overall, a cash ratio above 1.0 indicates that Ulta Beauty Inc has more than enough cash to cover its short-term obligations, which can be a positive sign of financial health and solvency. It is important for investors and analysts to monitor the cash ratio over time to assess the company's liquidity position and financial stability.