Ulta Beauty Inc (ULTA)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.84% | 39.09% | 39.09% | 39.62% | 39.62% |
| Operating profit margin | 13.85% | 14.97% | 14.97% | 16.05% | 16.05% |
| Pretax margin | 13.99% | 15.13% | 15.13% | 16.10% | 16.10% |
| Net profit margin | 10.63% | 11.52% | 11.52% | 12.17% | 12.17% |
Ulta Beauty Inc's profitability ratios have shown a slight decline over the past few years.
The Gross Profit Margin has remained relatively stable around 39%, indicating the company's ability to generate profits after accounting for the cost of goods sold.
The Operating Profit Margin, showing a decrease from 16.05% to 13.85%, suggests that the company's operating expenses relative to revenue have increased, leading to lower operating profits.
The Pretax Margin has also experienced a decline from 16.10% to 13.99%, indicating that the company's profitability before accounting for taxes has decreased over time.
Lastly, the Net Profit Margin has shown a downward trend from 12.17% to 10.63%, indicating that Ulta Beauty Inc's profitability after all expenses, including taxes, has decreased.
Overall, while Ulta Beauty Inc still maintains healthy profitability margins, the decreasing trend in these ratios could indicate potential challenges in managing costs and maintaining profitability in the future.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 26.08% | 29.40% | 29.40% | 30.51% | 30.51% |
| Return on assets (ROA) | 20.01% | 22.62% | 22.62% | 23.13% | 23.13% |
| Return on total capital | 63.44% | 73.62% | 74.39% | 83.61% | 83.61% |
| Return on equity (ROE) | 48.27% | 56.64% | 56.64% | 63.39% | 63.39% |
Ulta Beauty Inc's profitability ratios reflect a generally positive trend over the past few years.
- Operating return on assets (Operating ROA) remained relatively stable, starting at 30.51% in January 2023 and slightly decreasing to 26.08% in January 2025. This indicates that the company efficiently generated operating profits relative to its asset base.
- Return on assets (ROA) also showed a similar pattern, starting at 23.13% in January 2023 and declining to 20.01% in January 2025. This ratio signifies the company's ability to generate profits from its total assets.
- Return on total capital exhibited a decreasing trend, falling from 83.61% in January 2023 to 63.44% in January 2025. This ratio indicates the efficiency of the company in generating profits from both debt and equity capital employed in its operations.
- Return on equity (ROE) followed a similar trajectory, decreasing from 63.39% in January 2023 to 48.27% in January 2025. ROE reflects the return generated for the shareholders' equity investment in the company.
Overall, while Ulta Beauty Inc's profitability ratios have experienced a slight decline over the years, they still indicate that the company has been efficient in generating profits relative to its assets, capital, and equity.