Ulta Beauty Inc (ULTA)
Return on total capital
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,678,030 | 1,638,610 | 1,297,490 | 236,820 | 901,094 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,279,330 | 1,959,810 | 1,535,370 | 1,999,550 | 1,902,090 |
| Return on total capital | 73.62% | 83.61% | 84.51% | 11.84% | 47.37% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,678,030K ÷ ($—K + $2,279,330K)
= 73.62%
Ulta Beauty Inc's return on total capital has exhibited fluctuating trends over the past five years. The return on total capital was highest in fiscal year 2022 at 84.51%, reflecting strong efficiency in generating returns from the total capital employed. However, there was a slight decrease in fiscal year 2023 to 83.61%. Despite this, the company's return on total capital remained relatively high, indicating continued effectiveness in utilizing its capital resources.
In contrast, Ulta Beauty's return on total capital declined significantly in fiscal year 2021 to 11.84%, reflecting challenges in generating returns relative to the capital invested during that period. The improvement in fiscal year 2024 to 73.62% signifies a notable recovery and a return to higher levels of efficiency in capital utilization.
Overall, Ulta Beauty's return on total capital performance has shown variability in recent years, with fluctuations influenced by factors such as operational efficiency, profitability, and capital structure. The company's ability to maintain high return on total capital levels is indicative of effective management of its capital investments and ability to generate sustainable returns for its shareholders.
Peer comparison
Feb 3, 2024