Ulta Beauty Inc. (NASDAQ:ULTA)

This company has been moved to the archive! The financial data has not been updated since August 24, 2023.

Analysis of Bad Debts

Allowance for doubtful accounts receivable (bad debts) is a contra account which reduce the balance of the company gross accounts receivable. The relationship between the allowance and the balance in receivables should be relatively constant unless there is a change in the economy overall or a change in customer base.

Allowance for Doubtful Accounts Receivable

Allowance for Doubtful Accounts Receivable

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Selected Financial Data (US$ in thousands)
Allowance for doubtful accounts	1,076)	1,005)	768)	1,363)	651)	1,371)
Receivables, gross	200,498)	234,687)	193,877)	140,700)	136,819)	101,090)
Financial Ratio
Allowance as a percentage of receivables, gross¹	0.54%	0.43%	0.40%	0.97%	0.48%	1.36%

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

¹ 2023 Calculation
Allowance as a percentage of receivables, gross = 100 × Allowance for doubtful accounts ÷ Receivables, gross
= 100 × 1,076 ÷ 200,498 = 0.54%

Financial ratio	Description	The company
Allowance as a percentage of receivables, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	Ulta Beauty Inc. allowance as a percentage of receivables, gross increased from 2021 to 2022 and from 2022 to 2023.