Ulta Beauty Inc (ULTA)

Financial leverage ratio

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Total assets	US$ in thousands	6,001,690	5,707,010	5,707,010	5,370,410	5,370,410
Total stockholders’ equity	US$ in thousands	2,488,350	2,279,330	2,279,330	1,959,810	1,959,810
Financial leverage ratio		2.41	2.50	2.50	2.74	2.74

January 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,001,690K ÷ $2,488,350K
= 2.41

Ulta Beauty Inc's financial leverage ratio, which measures the extent to which the company uses debt to finance its operations, has shown a gradual decline over the stated period. Starting at 2.74 in January 2023 and being consistent in the subsequent period, the ratio decreased to 2.50 by January 2024 and remained stable at that level until January 31, 2025, when it further decreased to 2.41. This downward trend indicates that Ulta Beauty Inc has been reducing its reliance on debt to support its business activities, potentially enhancing its financial stability and reducing its risk exposure. This improvement in financial leverage ratio suggests a stronger financial position for the company over time.