Financial Details Of Ulta Beauty

This essay will delve into the financial details of the company Ulta Beauty. Ulta Beauty is currently the largest beauty retailer in the U.S., providing individuals with cosmetics, fragrances, skin care products, hair care products, and salon services. Further, Ulta Beauty has locations throughout the United States, with headquarters in Illinois. Some argue Ulta's popularity is due to it offering high-end and drugstore products, unlike any other store. Therefore, Ulta beauty has been quite successful throughout the years financially.

While Ulta Beauty, like any corporation, has faced challenges, they plan on continuing its growth. One major challenge was navigating sales during the pandemic.The beauty market declined in 2020 but stabilized

For instance, their current ratio is current assets divided by current liabilities. For 2021, this ratio was 2,514,777/ 1,343,713, equaling to .8715. Additionally, for 2022, 2,281,183/ 1,558,010 equals 1.46. Typically, a good current ratio is between 1.2 and 2, meaning the business has two times as many current assets as liabilities to cover its debts. Therefore Ulta's current ratio in both years was favorable. Some factors that contribute to this are the high amounts of cash and inventory Ulta has been able to sustain. This causes the asset number to be much bigger than current liabilities, which in the end, means a good current ratio.

For the leverage ratios, Ulta was slightly less favorable. Further, Ulta's debt ratio, which is total debt/total assets for 2022, was 3,229,006/ 4,764,379, which equals .67. On the other hand, in 2021, the ratio was 3,090,420/ 5,089,969, which .60. The debt Ratio measures the company's total debt as a percentage of its total assets. A higher debt ratio means the company is leveraged. Typically a good debt ratio is between .3 and .6, so Ulta is right on the cusp of going

For instance, the inventory turnover ratio measures the number of times inventory is sold in a time period and is sales divided by inventory. For Ulta, this number was 5.7 in 2022, and this number was found by dividing $ 8,630,889 by $ 1,499,218. In 2021, the inventory ratio was $ 6,151,953 divided by $1,168,215, which equals 5.2. A good inventory ratio typically falls between 5 and 10; therefore, a higher ratio is more favorable. Overall this ratio tends to be high for Ulta because their products are so high in demand, and they're the leading store in their