Ulta Beauty Inc (ULTA)

Current 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
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
Current ratio		1.71	1.52	1.69	1.64	1.61	1.62	1.63	1.58	1.46	1.74	1.81	1.68	1.87	1.82	2.64	2.49	1.81	1.67	1.80	1.93

February 3, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,836,520K ÷ $1,658,190K
= 1.71

The current ratio of Ulta Beauty Inc has shown fluctuations over the periods analyzed, ranging from 1.46 to 2.64. This ratio indicates the company's ability to meet its short-term obligations using its current assets. A current ratio above 1 suggests that the company has more current assets than current liabilities, which is generally considered favorable.

The current ratio has generally been at healthy levels, with some periods exhibiting stronger liquidity positions (e.g., 2.64 in August 2020) and others showing slightly weaker positions (e.g., 1.46 in January 2022). It is important to note that while a high current ratio indicates good short-term liquidity, an excessively high ratio may suggest that the company is not efficiently using its current assets to generate revenue.

Overall, Ulta Beauty Inc's current ratio trend indicates a generally stable and manageable liquidity position, allowing the company to cover its short-term obligations with relative ease across the periods analyzed.