Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Ulta Beauty Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Ulta Beauty Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Ulta Beauty Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Ulta Beauty Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Ulta Beauty Inc. working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Ulta Beauty Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Ulta Beauty Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Ulta Beauty Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Ulta Beauty Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Ulta Beauty Inc. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Inventory Turnover
Ulta Beauty Inc., inventory turnover calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of sales | 6,164,070) | 5,262,335) | 4,202,794) | 4,717,004) | 4,307,304) | 3,787,697) | |
| Merchandise inventories, net | 1,603,451) | 1,499,218) | 1,168,215) | 1,293,701) | 1,214,329) | 1,096,424) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 3.84 | 3.51 | 3.60 | 3.65 | 3.55 | 3.45 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 9.15 | 8.40 | 8.34 | 9.80 | 8.08 | — | |
| Home Depot Inc. | 4.20 | 4.55 | 5.25 | 5.00 | 5.10 | — | |
| Lowe’s Cos. Inc. | 3.50 | 3.65 | 3.71 | 3.73 | 3.85 | — | |
| TJX Cos. Inc. | 6.21 | 5.82 | 5.66 | 6.13 | 6.08 | — | |
| Inventory Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 6.18 | 6.10 | 6.36 | 6.83 | 6.07 | — | |
| Inventory Turnover, Industry | |||||||
| Consumer Discretionary | 6.99 | 6.67 | 7.04 | 7.48 | 7.72 | — | |
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
Inventory turnover = Cost of sales ÷ Merchandise inventories, net
= 6,164,070 ÷ 1,603,451 = 3.84
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Ulta Beauty Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Receivables Turnover
Ulta Beauty Inc., receivables turnover calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 10,208,580) | 8,630,889) | 6,151,953) | 7,398,068) | 6,716,615) | 5,884,506) | |
| Receivables, net | 199,422) | 233,682) | 193,109) | 139,337) | 136,168) | 99,719) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 51.19 | 36.93 | 31.86 | 53.09 | 49.33 | 59.01 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 16.86 | 19.32 | 23.26 | 26.09 | 22.26 | — | |
| Home Depot Inc. | 47.45 | 44.12 | 44.15 | 52.34 | 55.89 | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 88.70 | 93.79 | 69.69 | 108.00 | 112.54 | — | |
| Receivables Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 23.15 | 26.52 | 30.59 | 35.28 | 33.53 | — | |
| Receivables Turnover, Industry | |||||||
| Consumer Discretionary | 17.84 | 17.95 | 21.21 | 21.81 | 21.46 | — | |
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
Receivables turnover = Net sales ÷ Receivables, net
= 10,208,580 ÷ 199,422 = 51.19
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Ulta Beauty Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
Ulta Beauty Inc., payables turnover calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of sales | 6,164,070) | 5,262,335) | 4,202,794) | 4,717,004) | 4,307,304) | 3,787,697) | |
| Accounts payable | 559,527) | 552,730) | 477,052) | 414,009) | 404,016) | 325,758) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 11.02 | 9.52 | 8.81 | 11.39 | 10.66 | 11.63 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 3.59 | 3.63 | 3.46 | 3.22 | 3.51 | — | |
| Home Depot Inc. | 9.14 | 7.45 | 7.52 | 9.33 | 9.16 | — | |
| Lowe’s Cos. Inc. | 6.16 | 5.65 | 5.51 | 6.42 | 5.85 | — | |
| TJX Cos. Inc. | 9.53 | 7.77 | 5.09 | 11.17 | 10.53 | — | |
| Payables Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.61 | 4.48 | 4.19 | 4.25 | 4.75 | — | |
| Payables Turnover, Industry | |||||||
| Consumer Discretionary | 5.18 | 4.80 | 4.66 | 4.74 | 5.51 | — | |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 6,164,070 ÷ 559,527 = 11.02
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Ulta Beauty Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
Working Capital Turnover
Ulta Beauty Inc., working capital turnover calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 2,709,304) | 2,281,183) | 2,514,777) | 2,055,317) | 1,914,861) | 1,693,743) | |
| Less: Current liabilities | 1,681,775) | 1,558,010) | 1,343,713) | 1,137,261) | 823,736) | 642,166) | |
| Working capital | 1,027,529) | 723,173) | 1,171,064) | 918,056) | 1,091,125) | 1,051,577) | |
| Net sales | 10,208,580) | 8,630,889) | 6,151,953) | 7,398,068) | 6,716,615) | 5,884,506) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 9.94 | 11.93 | 5.25 | 8.06 | 6.16 | 5.60 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 77.32 | — | 24.33 | 60.82 | 32.92 | — | |
| Home Depot Inc. | 16.81 | 417.56 | 24.87 | 76.81 | 59.68 | — | |
| Lowe’s Cos. Inc. | 50.26 | 245.54 | 24.92 | 530.50 | — | — | |
| TJX Cos. Inc. | 23.22 | 17.40 | 6.51 | 23.97 | 13.27 | — | |
| Working Capital Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 42.11 | — | 21.83 | 63.17 | 38.37 | — | |
| Working Capital Turnover, Industry | |||||||
| Consumer Discretionary | 14.99 | 18.57 | 11.02 | 13.68 | 25.90 | — | |
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
Working capital turnover = Net sales ÷ Working capital
= 10,208,580 ÷ 1,027,529 = 9.94
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Ulta Beauty Inc. working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Average Inventory Processing Period
Ulta Beauty Inc., average inventory processing period calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 3.84 | 3.51 | 3.60 | 3.65 | 3.55 | 3.45 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 95 | 104 | 101 | 100 | 103 | 106 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Amazon.com Inc. | 40 | 43 | 44 | 37 | 45 | — | |
| Home Depot Inc. | 87 | 80 | 70 | 73 | 72 | — | |
| Lowe’s Cos. Inc. | 104 | 100 | 98 | 98 | 95 | — | |
| TJX Cos. Inc. | 59 | 63 | 65 | 60 | 60 | — | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 59 | 60 | 57 | 53 | 60 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Discretionary | 52 | 55 | 52 | 49 | 47 | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.84 = 95
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Ulta Beauty Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Average Receivable Collection Period
Ulta Beauty Inc., average receivable collection period calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 51.19 | 36.93 | 31.86 | 53.09 | 49.33 | 59.01 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 7 | 10 | 11 | 7 | 7 | 6 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Amazon.com Inc. | 22 | 19 | 16 | 14 | 16 | — | |
| Home Depot Inc. | 8 | 8 | 8 | 7 | 7 | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 4 | 4 | 5 | 3 | 3 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 16 | 14 | 12 | 10 | 11 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Discretionary | 20 | 20 | 17 | 17 | 17 | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 51.19 = 7
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Ulta Beauty Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
Operating Cycle
Ulta Beauty Inc., operating cycle calculation, comparison to benchmarks
No. days
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 95 | 104 | 101 | 100 | 103 | 106 | |
| Average receivable collection period | 7 | 10 | 11 | 7 | 7 | 6 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 102 | 114 | 112 | 107 | 110 | 112 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Amazon.com Inc. | 62 | 62 | 60 | 51 | 61 | — | |
| Home Depot Inc. | 95 | 88 | 78 | 80 | 79 | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 63 | 67 | 70 | 63 | 63 | — | |
| Operating Cycle, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 75 | 74 | 69 | 63 | 71 | — | |
| Operating Cycle, Industry | |||||||
| Consumer Discretionary | 72 | 75 | 69 | 66 | 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).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 95 + 7 = 102
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Ulta Beauty Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Average Payables Payment Period
Ulta Beauty Inc., average payables payment period calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 11.02 | 9.52 | 8.81 | 11.39 | 10.66 | 11.63 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 33 | 38 | 41 | 32 | 34 | 31 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Amazon.com Inc. | 102 | 101 | 105 | 113 | 104 | — | |
| Home Depot Inc. | 40 | 49 | 49 | 39 | 40 | — | |
| Lowe’s Cos. Inc. | 59 | 65 | 66 | 57 | 62 | — | |
| TJX Cos. Inc. | 38 | 47 | 72 | 33 | 35 | — | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 79 | 81 | 87 | 86 | 77 | — | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Discretionary | 70 | 76 | 78 | 77 | 66 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.02 = 33
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Ulta Beauty Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023. |
Cash Conversion Cycle
Ulta Beauty Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 95 | 104 | 101 | 100 | 103 | 106 | |
| Average receivable collection period | 7 | 10 | 11 | 7 | 7 | 6 | |
| Average payables payment period | 33 | 38 | 41 | 32 | 34 | 31 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 69 | 76 | 71 | 75 | 76 | 81 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Amazon.com Inc. | -40 | -39 | -45 | -62 | -43 | — | |
| Home Depot Inc. | 55 | 39 | 29 | 41 | 39 | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 25 | 20 | -2 | 30 | 28 | — | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Discretionary Distribution & Retail | -4 | -7 | -18 | -23 | -6 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Discretionary | 2 | -1 | -9 | -11 | -2 | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 95 + 7 – 33 = 69
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Ulta Beauty Inc. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |