Ulta Beauty Inc (ULTA)

Quick 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	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
Receivables	US$ in thousands	—	—	—	—	207,939	—	—	202,868	—	174,444	—	190,282	—	199,422	—	200,304	—	180,514	—	—
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
Quick ratio		0.40	0.10	0.26	0.33	0.59	0.46	0.07	0.18	0.29	0.38	0.41	0.51	0.44	0.56	0.15	0.27	0.29	0.41	0.41	0.41

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 shown some fluctuations over the period indicated in the data. The quick ratio, which measures the company's ability to meet short-term obligations with its most liquid assets, stood at 0.41 in January 2022 and remained relatively stable at this level through April and July of the same year. However, there was a noticeable decline in the quick ratio to 0.29 in July 2022, indicating a potential liquidity strain.

Subsequently, the quick ratio further decreased to 0.27 in October 2022 and then sharply dropped to 0.15 by October 31, 2022, suggesting a significant decrease in the company's liquidity position. However, in the following periods, the quick ratio showed some recovery, reaching 0.56 in January 2023 and 0.51 in April 2023.

Despite these improvements, the quick ratio decreased again to 0.18 in October 2023 and further dropped to 0.07 by the end of the same month, indicating a potential liquidity challenge for the company. In the period that followed, the quick ratio showed some recovery, reaching 0.46 in January 2024 and peaking at 0.59 in February 2024. However, the ratio declined to 0.10 by October 2024, reflecting a decrease in liquidity.

In the most recent period provided, as of January 31, 2025, the quick ratio stood at 0.40, showing a moderate level of liquidity for Ulta Beauty Inc. Overall, the analysis of the quick ratio for Ulta Beauty Inc demonstrates fluctuations in the company's ability to meet short-term obligations with its liquid assets over the specified period.