Ulta Beauty Inc (ULTA)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.09% | 39.62% | 39.03% | 31.68% | 36.24% |
| Operating profit margin | 14.97% | 16.05% | 15.03% | 3.85% | 12.18% |
| Pretax margin | 15.13% | 16.10% | 15.01% | 3.76% | 12.25% |
| Net profit margin | 11.52% | 12.17% | 11.42% | 2.86% | 9.54% |
Ulta Beauty Inc has demonstrated consistent and relatively healthy profitability ratios over the past five years based on the provided data. The gross profit margin has remained within a narrow range between 31.68% and 39.62%, with the most recent figure standing at 39.09%. This indicates that the company has effectively managed its cost of goods sold to generate gross profit.
In terms of operating efficiency, Ulta Beauty Inc's operating profit margin has also shown stability, ranging from 3.85% to 16.05% over the five-year period. The most recent operating profit margin of 14.97% suggests that the company is efficient in controlling its operating expenses to generate profit from its core business activities.
Furthermore, the pretax margin and net profit margin have exhibited a similar trend of improvement over the years. The pretax margin has increased from 3.76% in 2021 to 15.13% in 2024, while the net profit margin has grown from 2.86% in 2021 to 11.52% in 2024. These ratios indicate that Ulta Beauty Inc has been successful in managing its tax liabilities and other expenses to enhance profitability.
Overall, Ulta Beauty Inc's profitability ratios reflect a stable and improving financial performance, suggesting effective cost management and operational efficiency in maximizing profits.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 29.40% | 30.51% | 27.23% | 4.65% | 18.53% |
| Return on assets (ROA) | 22.62% | 23.13% | 20.69% | 3.45% | 14.51% |
| Return on total capital | 73.62% | 83.61% | 84.51% | 11.84% | 47.37% |
| Return on equity (ROE) | 56.64% | 63.39% | 64.21% | 8.79% | 37.11% |
Ulta Beauty Inc has displayed a consistent and impressive trend in profitability ratios over the past five years.
1. Operating return on assets (Operating ROA) has shown a positive growth trajectory, with a high of 30.51% in Jan 28, 2023, and a recent figure of 29.40% in Feb 3, 2024. This indicates that Ulta Beauty has been effectively generating profit from its assets through its operational activities.
2. Return on assets (ROA) has also exhibited a similar upward trend, with a notable increase from 3.45% in Jan 30, 2021, to 22.62% in Feb 3, 2024. This ratio signifies the company's ability to generate profit relative to its total assets, reflecting strong efficiency and asset utilization.
3. Return on total capital has consistently been high, reaching a peak of 83.61% in Jan 28, 2023, and currently standing at 73.62% in Feb 3, 2024. This ratio highlights Ulta Beauty's ability to generate profits in relation to the total capital employed in the business.
4. Return on equity (ROE) has demonstrated robust growth over the years, with a significant improvement from 8.79% in Jan 30, 2021, to 56.64% in Feb 3, 2024. This metric indicates the company's efficiency in utilizing shareholder equity to generate profits.
Overall, Ulta Beauty Inc's profitability ratios reflect strong operational efficiency, effective asset utilization, and solid returns for both asset and equity holders.