Ulta Beauty Inc (ULTA)

Financial leverage ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Total assets	US$ in thousands	5,707,010	5,370,410	4,764,380	5,089,970	4,863,870
Total stockholders’ equity	US$ in thousands	2,279,330	1,959,810	1,535,370	1,999,550	1,902,090
Financial leverage ratio		2.50	2.74	3.10	2.55	2.56

February 3, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,707,010K ÷ $2,279,330K
= 2.50

The financial leverage ratio of Ulta Beauty Inc has shown fluctuations over the past five years. In the most recent fiscal year ending February 3, 2024, the ratio stood at 2.50, indicating that the company has $2.50 of debt for every $1 of equity. This represented a decrease from the previous year when the ratio was 2.74.

Comparing this to the trend over the past five years, we can observe that the financial leverage ratio has been somewhat volatile. The ratio reached its peak in the fiscal year ending January 29, 2022, at 3.10 before decreasing to 2.55 in the following year and remaining relatively stable at 2.56 in the fiscal year ending February 1, 2020.

Overall, the downward trend in the financial leverage ratio from 2022 to 2024 suggests that Ulta Beauty Inc may be effectively managing its debt levels in relation to equity, which could indicate improved financial stability and reduced risk. However, it is important to continue monitoring this ratio to ensure sustainable and healthy financial leverage in the future.