Ulta Beauty Inc (ULTA)

Return on equity (ROE)

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Net income (ttm)	US$ in thousands	1,291,005	1,237,387	1,262,489	1,258,064	1,242,408	1,191,023	1,131,727	1,086,943	985,837	867,965	727,474	484,633	175,835	227,060	282,009	435,215	705,945	697,900	699,319	686,384
Total stockholders’ equity	US$ in thousands	2,279,330	2,028,540	2,051,880	2,018,070	1,959,810	1,922,260	1,769,070	1,745,620	1,535,370	1,986,800	1,879,810	1,844,720	1,999,550	1,854,440	1,770,790	1,753,960	1,902,090	1,847,160	1,839,450	1,941,570
ROE		56.64%	61.00%	61.53%	62.34%	63.39%	61.96%	63.97%	62.27%	64.21%	43.69%	38.70%	26.27%	8.79%	12.24%	15.93%	24.81%	37.11%	37.78%	38.02%	35.35%

February 3, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,291,005K ÷ $2,279,330K
= 56.64%

Ulta Beauty Inc's return on equity (ROE) has shown a positive trend over the past several quarters, indicative of the company's ability to generate strong returns for its shareholders. The ROE increased steadily from 35.35% in May 2019 to a high of 64.21% in Jan 2022, signaling improving profitability and efficiency in the utilization of shareholder equity.

However, there was a decline in ROE in the following quarters, dropping to 43.69% in Oct 2021 and further decreasing to 26.27% in Jul 2021, which may suggest a temporary setback or challenges faced by the company. The ROE rebounded in the subsequent quarters, reaching 63.39% in Jan 2023 and peaking at 63.97% in Jul 2022, indicating the company's efforts to enhance its profitability and efficiency.

The most recent data shows an ROE of 56.64% as of Feb 2024, demonstrating a slightly lower but still strong return on equity for Ulta Beauty Inc. Overall, the company's ROE performance reflects a mix of positive growth, occasional setbacks, and recovery periods, highlighting its ability to create value for shareholders through effective management of equity investments.