Ulta Beauty Inc (ULTA)

Quick ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash	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
Receivables	US$ in thousands	207,939	199,422	233,682	193,109	139,337
Total current liabilities	US$ in thousands	1,658,190	1,681,780	1,558,010	1,343,710	1,137,260
Quick ratio		0.59	0.56	0.56	0.92	0.56

February 3, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($766,594K + $—K + $207,939K) ÷ $1,658,190K
= 0.59

The quick ratio of Ulta Beauty Inc has fluctuated over the past five years, ranging from 0.56 to 0.92. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with only its quick assets.

In this case, Ulta Beauty Inc's quick ratio has been consistently below 1, suggesting that the company may have a limited ability to cover its short-term obligations without relying on inventory. The significant drop in the quick ratio from 0.92 in 2021 to 0.56 in subsequent years may raise concerns about the company's liquidity and ability to cover immediate financial obligations. Further analysis of the company's current assets and liabilities structure would be necessary to understand the reasons behind the fluctuations in the quick ratio.