Ulta Beauty Inc (ULTA)
Return on total capital
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,578,660 | 1,678,030 | 1,695,650 | 1,638,610 | 1,638,610 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,488,350 | 2,279,330 | 2,279,330 | 1,959,810 | 1,959,810 |
| Return on total capital | 63.44% | 73.62% | 74.39% | 83.61% | 83.61% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,578,660K ÷ ($—K + $2,488,350K)
= 63.44%
Ulta Beauty Inc's return on total capital has exhibited a gradual decline over the years, from 83.61% in January 2023 to 63.44% in January 2025. This indicates a reduction in the company's efficiency in generating profits from its total capital employed. The decreasing trend may raise concerns about the company's ability to effectively utilize its capital and generate adequate returns for its investors. It is essential for Ulta Beauty Inc to assess and address the factors contributing to this decline to improve its return on total capital and enhance overall financial performance.
Peer comparison
Jan 31, 2025