Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Ulta Beauty Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Goodwill	10,870)	10,870)	10,870)	10,870)	10,870)	—)
Developed technology	5,419)	4,631)	4,631)	4,631)	4,631)	—)
Other intangible assets, gross carrying value	5,419)	4,631)	4,631)	4,631)	4,631)	—)
Accumulated amortization	(4,107)	(3,093)	(2,166)	(1,240)	(314)	—)
Other intangible assets, net	1,312)	1,538)	2,465)	3,391)	4,317)	—)
Goodwill and other intangible assets	12,182)	12,408)	13,335)	14,261)	15,187)	—)

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).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Other intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Ulta Beauty Inc. other intangible assets, net decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Ulta Beauty Inc. goodwill and other intangible assets decreased from 2021 to 2022 and from 2022 to 2023.

Ulta Beauty Inc., adjustments to financial statements

US$ in thousands

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Adjustment to Total Assets
Total assets (as reported)	5,370,411)	4,764,379)	5,089,969)	4,863,872)	3,191,172)	2,908,687)
Less: Goodwill	10,870)	10,870)	10,870)	10,870)	10,870)	—)
Total assets (adjusted)	5,359,541)	4,753,509)	5,079,099)	4,853,002)	3,180,302)	2,908,687)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	1,959,811)	1,535,373)	1,999,549)	1,902,094)	1,820,218)	1,774,217)
Less: Goodwill	10,870)	10,870)	10,870)	10,870)	10,870)	—)
Stockholders’ equity (adjusted)	1,948,941)	1,524,503)	1,988,679)	1,891,224)	1,809,348)	1,774,217)

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).

Ulta Beauty Inc., Financial Data: Reported vs. Adjusted

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Ulta Beauty Inc., adjusted financial ratios

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Total Asset Turnover
Reported total asset turnover	1.90	1.81	1.21	1.52	2.10	2.02
Adjusted total asset turnover	1.90	1.82	1.21	1.52	2.11	2.02
Financial Leverage
Reported financial leverage	2.74	3.10	2.55	2.56	1.75	1.64
Adjusted financial leverage	2.75	3.12	2.55	2.57	1.76	1.64
Return on Equity (ROE)
Reported ROE	63.39%	64.21%	8.79%	37.11%	36.18%	31.29%
Adjusted ROE	63.75%	64.67%	8.84%	37.33%	36.40%	31.29%
Return on Assets (ROA)
Reported ROA	23.13%	20.69%	3.45%	14.51%	20.64%	19.09%
Adjusted ROA	23.18%	20.74%	3.46%	14.55%	20.71%	19.09%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Ulta Beauty Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Ulta Beauty Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Ulta Beauty Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Ulta Beauty Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Ulta Beauty Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
As Reported
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)
Total assets	5,370,411)	4,764,379)	5,089,969)	4,863,872)	3,191,172)	2,908,687)
Activity Ratio
Total asset turnover¹	1.90	1.81	1.21	1.52	2.10	2.02
Adjusted for Goodwill
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)
Adjusted total assets	5,359,541)	4,753,509)	5,079,099)	4,853,002)	3,180,302)	2,908,687)
Activity Ratio
Adjusted total asset turnover²	1.90	1.82	1.21	1.52	2.11	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).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 10,208,580 ÷ 5,370,411 = 1.90

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 10,208,580 ÷ 5,359,541 = 1.90

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Ulta Beauty Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	5,370,411)	4,764,379)	5,089,969)	4,863,872)	3,191,172)	2,908,687)
Stockholders’ equity	1,959,811)	1,535,373)	1,999,549)	1,902,094)	1,820,218)	1,774,217)
Solvency Ratio
Financial leverage¹	2.74	3.10	2.55	2.56	1.75	1.64
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	5,359,541)	4,753,509)	5,079,099)	4,853,002)	3,180,302)	2,908,687)
Adjusted stockholders’ equity	1,948,941)	1,524,503)	1,988,679)	1,891,224)	1,809,348)	1,774,217)
Solvency Ratio
Adjusted financial leverage²	2.75	3.12	2.55	2.57	1.76	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).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 5,370,411 ÷ 1,959,811 = 2.74

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 5,359,541 ÷ 1,948,941 = 2.75

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Ulta Beauty Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,242,408)	985,837)	175,835)	705,945)	658,559)	555,234)
Stockholders’ equity	1,959,811)	1,535,373)	1,999,549)	1,902,094)	1,820,218)	1,774,217)
Profitability Ratio
ROE¹	63.39%	64.21%	8.79%	37.11%	36.18%	31.29%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	1,242,408)	985,837)	175,835)	705,945)	658,559)	555,234)
Adjusted stockholders’ equity	1,948,941)	1,524,503)	1,988,679)	1,891,224)	1,809,348)	1,774,217)
Profitability Ratio
Adjusted ROE²	63.75%	64.67%	8.84%	37.33%	36.40%	31.29%

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).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,242,408 ÷ 1,959,811 = 63.39%

² Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 1,242,408 ÷ 1,948,941 = 63.75%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Ulta Beauty Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,242,408)	985,837)	175,835)	705,945)	658,559)	555,234)
Total assets	5,370,411)	4,764,379)	5,089,969)	4,863,872)	3,191,172)	2,908,687)
Profitability Ratio
ROA¹	23.13%	20.69%	3.45%	14.51%	20.64%	19.09%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	1,242,408)	985,837)	175,835)	705,945)	658,559)	555,234)
Adjusted total assets	5,359,541)	4,753,509)	5,079,099)	4,853,002)	3,180,302)	2,908,687)
Profitability Ratio
Adjusted ROA²	23.18%	20.74%	3.46%	14.55%	20.71%	19.09%

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).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,242,408 ÷ 5,370,411 = 23.13%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 1,242,408 ÷ 5,359,541 = 23.18%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Ulta Beauty Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Ulta Beauty Inc. (NASDAQ:ULTA)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Ulta Beauty Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Ulta Beauty Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)