Stock Analysis on Net
Stock Analysis on Net

Ulta Beauty Inc. (NASDAQ:ULTA)

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

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Ulta Beauty Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Jan 28, 2023 63.39% = 23.13% × 2.74
Jan 29, 2022 64.21% = 20.69% × 3.10
Jan 30, 2021 8.79% = 3.45% × 2.55
Feb 1, 2020 37.11% = 14.51% × 2.56
Feb 2, 2019 36.18% = 20.64% × 1.75
Feb 3, 2018 31.29% = 19.09% × 1.64

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

Ulta Beauty Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jan 28, 2023 63.39% = 12.17% × 1.90 × 2.74
Jan 29, 2022 64.21% = 11.42% × 1.81 × 3.10
Jan 30, 2021 8.79% = 2.86% × 1.21 × 2.55
Feb 1, 2020 37.11% = 9.54% × 1.52 × 2.56
Feb 2, 2019 36.18% = 9.80% × 2.10 × 1.75
Feb 3, 2018 31.29% = 9.44% × 2.02 × 1.64

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in financial leverage ratio.

Five-Component Disaggregation of ROE

Ulta Beauty Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jan 28, 2023 63.39% = 0.76 × 1.00 × 16.10% × 1.90 × 2.74
Jan 29, 2022 64.21% = 0.76 × 1.00 × 15.01% × 1.81 × 3.10
Jan 30, 2021 8.79% = 0.76 × 1.00 × 3.76% × 1.21 × 2.55
Feb 1, 2020 37.11% = 0.78 × 1.00 × 12.25% × 1.52 × 2.56
Feb 2, 2019 36.18% = 0.77 × 1.00 × 12.79% × 2.10 × 1.75
Feb 3, 2018 31.29% = 0.71 × 1.00 × 13.37% × 2.02 × 1.64

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

Ulta Beauty Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jan 28, 2023 23.13% = 12.17% × 1.90
Jan 29, 2022 20.69% = 11.42% × 1.81
Jan 30, 2021 3.45% = 2.86% × 1.21
Feb 1, 2020 14.51% = 9.54% × 1.52
Feb 2, 2019 20.64% = 9.80% × 2.10
Feb 3, 2018 19.09% = 9.44% × 2.02

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).

The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Ulta Beauty Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jan 28, 2023 23.13% = 0.76 × 1.00 × 16.10% × 1.90
Jan 29, 2022 20.69% = 0.76 × 1.00 × 15.01% × 1.81
Jan 30, 2021 3.45% = 0.76 × 1.00 × 3.76% × 1.21
Feb 1, 2020 14.51% = 0.78 × 1.00 × 12.25% × 1.52
Feb 2, 2019 20.64% = 0.77 × 1.00 × 12.79% × 2.10
Feb 3, 2018 19.09% = 0.71 × 1.00 × 13.37% × 2.02

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).

The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Ulta Beauty Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jan 28, 2023 12.17% = 0.76 × 1.00 × 16.10%
Jan 29, 2022 11.42% = 0.76 × 1.00 × 15.01%
Jan 30, 2021 2.86% = 0.76 × 1.00 × 3.76%
Feb 1, 2020 9.54% = 0.78 × 1.00 × 12.25%
Feb 2, 2019 9.80% = 0.77 × 1.00 × 12.79%
Feb 3, 2018 9.44% = 0.71 × 1.00 × 13.37%

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).

The primary reason for the increase in net profit margin ratio over 2023 year is the increase in operating profitability measured by EBIT margin ratio.