Ulta Beauty Inc (ULTA)

Quick ratio

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cash	US$ in thousands	703,201	766,594	766,594	737,877	737,877
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	—	207,939	—	—	199,422
Total current liabilities	US$ in thousands	1,779,480	1,658,190	1,658,190	1,681,780	1,681,780
Quick ratio		0.40	0.59	0.46	0.44	0.56

January 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($703,201K + $—K + $—K) ÷ $1,779,480K
= 0.40

The quick ratio of Ulta Beauty Inc has exhibited some fluctuations over the past few years. The quick ratio was 0.56 as of January 28, 2023, decreased to 0.44 by January 31, 2023, and slightly improved to 0.46 by January 31, 2024. It further increased to 0.59 as of February 3, 2024, but then decreased to 0.40 by January 31, 2025.

The quick ratio measures a company's ability to cover 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 obligations. Ulta Beauty Inc's quick ratio has generally been below 1 in the periods examined, which may suggest some level of liquidity risk. It is essential for the company to monitor and manage its liquidity position effectively to ensure it can meet its financial obligations in a timely manner.