Ulta Beauty Inc (ULTA)

Financial leverage ratio

		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
Total assets	US$ in thousands	6,001,690	5,958,490	5,737,410	5,631,940	5,707,010	5,707,010	5,595,010	5,595,010	5,248,760	5,248,760	5,375,720	5,375,720	5,370,410	5,370,410	5,331,550	5,331,550	4,945,990	4,945,990	5,012,040	4,764,380
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
Financial leverage ratio		2.41	2.56	2.44	2.45	2.50	2.50	2.76	2.76	2.56	2.56	2.66	2.66	2.74	2.74	2.77	2.77	2.80	2.80	2.87	3.10

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 has been decreasing steadily over the past few years, indicating a trend towards lower financial leverage. The ratio decreased from 3.10 in January 2022 to 2.41 in January 2025. This implies that the company's reliance on debt to finance its operations has been decreasing over time, which may be viewed positively by investors and creditors as it reduces the company's financial risk. A lower financial leverage ratio suggests that Ulta Beauty Inc's financial structure has become less risky and more balanced, as it indicates a lower level of debt compared to equity in its capital structure. Overall, the decreasing trend in the financial leverage ratio reflects a potentially healthier financial position for Ulta Beauty Inc.