Ulta Beauty Inc (ULTA)
Solvency ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.50 | 2.74 | 3.10 | 2.55 | 2.56 |
Based on the solvency ratios of Ulta Beauty Inc presented in the table, we observe the following trends:
1. Debt-to-assets ratio: The company has consistently maintained a debt-to-assets ratio of 0.00 over the past five years. This indicates that Ulta Beauty has not relied on debt financing to support its assets during this period.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has remained at 0.00 consistently across the same time frame. This suggests that the company's capital structure has not involved a significant amount of debt relative to its total capital.
3. Debt-to-equity ratio: Ulta Beauty has also maintained a debt-to-equity ratio of 0.00 for the past five years. This emphasizes the company's low reliance on debt in relation to its equity, reflecting a conservative financial strategy.
4. Financial leverage ratio: The financial leverage ratio has varied slightly over the years, with a peak of 3.10 in January 2022 and a low of 2.55 in January 2021. However, overall, the ratio has fluctuated within a relatively narrow range, indicating a stable level of financial leverage used by the company in financing its operations.
In conclusion, based on these solvency ratios, Ulta Beauty Inc appears to have a strong financial position with minimal debt obligations and a conservative capital structure. Additionally, the company has managed its financial leverage effectively, maintaining stability in its leverage levels over the past five years.
Coverage ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 332.11 | 780.21 | 41.29 | 178.22 |
Interest coverage is a critical ratio that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio implies a greater ability to meet interest payments, suggesting lower financial risk. Analyzing Ulta Beauty Inc's interest coverage over the past five years reveals a fluctuating trend.
In the most recent fiscal year ending on February 3, 2024, specific data for interest coverage is not available. However, in the preceding year, as of January 28, 2023, the interest coverage ratio was significantly high at 332.11, indicating a strong ability to cover interest payments with operating income.
Looking further back, in January 29, 2022, Ulta Beauty Inc's interest coverage reached an even higher level of 780.21. This suggests a substantial increase in the company's ability to service its debt obligations compared to the prior year.
Conversely, in the fiscal year ending on January 30, 2021, the interest coverage ratio dropped to 41.29, which may raise concerns about the company's ability to meet interest payments comfortably with its operating income. However, it is worth noting this was an outlier compared to the other years analyzed.
Finally, as of February 1, 2020, the interest coverage ratio stood at 178.22, indicating a relatively robust ability to cover interest expenses with operating income.
In conclusion, Ulta Beauty Inc has demonstrated varying levels of interest coverage over the past five years, with some remarkable peaks in 2022 and 2023. However, the significant drop in 2021 may warrant further investigation into the underlying factors affecting the company's financial performance and debt obligations.