Ulta Beauty Inc (ULTA)

Interest coverage

		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
Interest expense (ttm)	US$ in thousands	0	0	13,173	13,173	13,173	17,622	0	7,348	14,696	14,625	23,452	16,953	10,454	6,184	1,914	1,466	1,813	2,172	2,477	2,489
Interest coverage		—	—	134.52	134.02	128.43	88.88	—	211.29	113.46	117.99	75.97	100.36	155.07	252.71	787.13	1,079.41	880.41	727.62	594.75	530.22

January 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,576,113K ÷ $0K
= —

The interest coverage ratio of Ulta Beauty Inc, a key financial metric indicating the company's ability to pay interest expenses on its outstanding debt, has exhibited fluctuating trends over the past few years.

As of January 31, 2022, the interest coverage ratio was 530.22, indicating the company had a strong capacity to cover its interest obligations. This ratio further improved to 594.75 by April 30, 2022, and showed a consistent upward trend with ratios reaching 1,079.41 by October 29, 2022.

However, the interest coverage ratio declined to 252.71 by January 28, 2023, and then significantly dropped to 100.36 by April 29, 2023. This downward trend continued with ratios falling to 75.97 by April 30, 2023, and further to 113.46 by July 31, 2023.

Although there was a slight improvement with a ratio of 211.29 by October 28, 2023, the interest coverage ratio for January 31, 2024, stood at 88.88. Subsequently, the ratio increased to 134.52 by July 31, 2024, indicating some recovery.

Overall, the fluctuating nature of Ulta Beauty Inc's interest coverage ratio suggests varying levels of capacity to cover interest expenses, which may warrant further analysis on the company's debt structure and financial performance.