An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

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)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	2,285,412)	2,234,521)
Total assets (adjusted)	5,370,411)	4,764,379)	5,089,969)	4,863,872)	5,476,584)	5,143,208)
Adjustment to Total Debt
Total debt (as reported)	—)	—)	—)	—)	—)	—)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	—)	2,285,412)	2,234,521)
Add: Current operating lease liabilities	283,293)	274,118)	253,415)	239,629)	—)	—)
Add: Non-current operating lease liabilities	1,619,883)	1,572,638)	1,643,386)	1,698,718)	—)	—)
Total debt (adjusted)	1,903,176)	1,846,756)	1,896,801)	1,938,347)	2,285,412)	2,234,521)

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, 2} Equal to total present value of future operating lease payments.

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

Download chart

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 Turnover¹
Reported total asset turnover	1.90	1.81	1.21	1.52	2.10	2.02
Adjusted total asset turnover	1.90	1.81	1.21	1.52	1.23	1.14
Debt to Equity²
Reported debt to equity	0.00	0.00	0.00	0.00	0.00	0.00
Adjusted debt to equity	0.97	1.20	0.95	1.02	1.26	1.26
Return on Assets³ (ROA)
Reported ROA	23.13%	20.69%	3.45%	14.51%	20.64%	19.09%
Adjusted ROA	23.13%	20.69%	3.45%	14.51%	12.02%	10.80%

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 See details »

² See details »

³ See details »

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 debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Ulta Beauty Inc. adjusted debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
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

Download chart

	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 Operating Leases
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	5,370,411)	4,764,379)	5,089,969)	4,863,872)	5,476,584)	5,143,208)
Activity Ratio
Adjusted total asset turnover²	1.90	1.81	1.21	1.52	1.23	1.14

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 ÷ 5,370,411 = 1.90

Download chart

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 debt	—)	—)	—)	—)	—)	—)
Stockholders’ equity	1,959,811)	1,535,373)	1,999,549)	1,902,094)	1,820,218)	1,774,217)
Solvency Ratio
Debt to equity¹	0.00	0.00	0.00	0.00	0.00	0.00
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt	1,903,176)	1,846,756)	1,896,801)	1,938,347)	2,285,412)	2,234,521)
Stockholders’ equity	1,959,811)	1,535,373)	1,999,549)	1,902,094)	1,820,218)	1,774,217)
Solvency Ratio
Adjusted debt to equity²	0.97	1.20	0.95	1.02	1.26	1.26

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 Debt to equity = Total debt ÷ Stockholders’ equity
= 0 ÷ 1,959,811 = 0.00

² Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 1,903,176 ÷ 1,959,811 = 0.97

Download chart

Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Ulta Beauty Inc. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then improved 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)
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 Operating Leases
Selected Financial Data (US$ in thousands)
Net income	1,242,408)	985,837)	175,835)	705,945)	658,559)	555,234)
Adjusted total assets	5,370,411)	4,764,379)	5,089,969)	4,863,872)	5,476,584)	5,143,208)
Profitability Ratio
Adjusted ROA²	23.13%	20.69%	3.45%	14.51%	12.02%	10.80%

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 ÷ 5,370,411 = 23.13%

Download chart

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 Operating Leases

Adjustments to Financial Statements for Operating Leases

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

Adjusted Financial Ratios for Operating Leases (Summary)

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

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)