Ulta Beauty Inc (ULTA)
Return on total capital
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,576,113 | 1,575,150 | 1,771,969 | 1,765,469 | 1,691,748 | 1,566,300 | 1,437,738 | 1,552,581 | 1,667,424 | 1,725,579 | 1,781,555 | 1,701,341 | 1,621,127 | 1,562,758 | 1,506,568 | 1,582,420 | 1,596,186 | 1,580,380 | 1,473,191 | 1,319,722 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,488,350 | 2,329,010 | 2,348,160 | 2,300,740 | 2,279,330 | 2,279,330 | 2,028,540 | 2,028,540 | 2,051,880 | 2,051,880 | 2,018,070 | 2,018,070 | 1,959,810 | 1,959,810 | 1,922,260 | 1,922,260 | 1,769,070 | 1,769,070 | 1,745,620 | 1,535,370 |
| Return on total capital | 63.34% | 67.63% | 75.46% | 76.73% | 74.22% | 68.72% | 70.88% | 76.54% | 81.26% | 84.10% | 88.28% | 84.31% | 82.72% | 79.74% | 78.37% | 82.32% | 90.23% | 89.33% | 84.39% | 85.95% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,576,113K ÷ ($—K + $2,488,350K)
= 63.34%
Ulta Beauty Inc's return on total capital has exhibited fluctuations over the period from January 31, 2022, to January 31, 2025. The ratio started at a high of 85.95% in January 2022 and remained relatively stable above 80% until October 2023. However, after October 2023, the return on total capital began to decline steadily, reaching 63.34% by January 31, 2025.
These changes indicate varying levels of profitability relative to the total capital employed by the company. While the return on total capital remained strong for the majority of the period, the declining trend from October 2023 onwards suggests a potential decrease in the company's efficiency in generating returns on its total capital.
It is important for stakeholders to monitor this ratio closely as it provides insights into the company's ability to generate profits from its invested capital and may signal changes in the company's overall financial performance and efficiency.
Peer comparison
Jan 31, 2025