Name: Ulta Beauty Inc. (NASDAQ:ULTA) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Ulta Beauty Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Accounts payable	559,527)	552,730)	477,052)	414,009)	404,016)	325,758)
Accrued payroll, bonus, and employee benefits	183,828)	158,017)	143,992)	77,435)	96,020)	82,593)
Accrued taxes	58,850)	43,464)	36,787)	39,051)	32,085)	28,306)
Accrued capital expenditures	55,438)	24,209)	—)	—)	—)	—)
Accrued advertising	40,580)	49,477)	23,543)	—)	—)	—)
Other accrued liabilities	105,582)	89,630)	92,012)	129,602)	92,561)	78,272)
Accrued liabilities	444,278)	364,797)	296,334)	246,088)	220,666)	189,171)
Deferred revenue	394,677)	353,579)	274,383)	237,535)	199,054)	113,136)
Current operating lease liabilities	283,293)	274,118)	253,415)	239,629)	—)	—)
Accrued income taxes	—)	12,786)	42,529)	—)	—)	14,101)
Current liabilities	1,681,775)	1,558,010)	1,343,713)	1,137,261)	823,736)	642,166)
Non-current operating lease liabilities	1,619,883)	1,572,638)	1,643,386)	1,698,718)	—)	—)
Deferred rent	—)	—)	—)	—)	434,980)	407,916)
Deferred income taxes	55,346)	39,693)	65,359)	89,367)	83,864)	59,403)
Other long-term liabilities	53,596)	58,665)	37,962)	36,432)	28,374)	24,985)
Long-term liabilities	1,728,825)	1,670,996)	1,746,707)	1,824,517)	547,218)	492,304)
Total liabilities	3,410,600)	3,229,006)	3,090,420)	2,961,778)	1,370,954)	1,134,470)
Common stock, $0.01 par value	511)	530)	569)	573)	592)	614)
Treasury stock-common, at cost	(60,470)	(53,478)	(37,801)	(34,448)	(24,908)	(18,767)
Additional paid-in capital	1,023,997)	934,945)	847,303)	807,492)	738,671)	698,917)
Retained earnings	995,773)	653,376)	1,189,422)	1,128,477)	1,105,863)	1,093,453)
Accumulated other comprehensive income	—)	—)	56)	—)	—)	—)
Stockholders’ equity	1,959,811)	1,535,373)	1,999,549)	1,902,094)	1,820,218)	1,774,217)
Total liabilities and stockholders’ equity	5,370,411)	4,764,379)	5,089,969)	4,863,872)	3,191,172)	2,908,687)

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 financial position of the organization reflects a substantial expansion of the balance sheet between February 2018 and January 2023, with total liabilities and stockholders' equity increasing from 2.91 billion USD to 5.37 billion USD.

Current Liabilities and Operational Obligations: Current liabilities exhibit a consistent upward trajectory, growing from 642.2 million USD in 2018 to 1.68 billion USD in 2023. This growth is driven primarily by a steady increase in accounts payable, which rose from 325.8 million USD to 559.5 million USD over the period. Furthermore, deferred revenue demonstrated significant growth, increasing from 113.1 million USD in 2018 to 394.7 million USD in 2023, suggesting an expansion in prepaid services or loyalty program obligations.
Long-Term Liabilities and Lease Accounting: A significant structural shift in long-term liabilities occurred in 2020, where liabilities jumped from 547.2 million USD in 2019 to 1.82 billion USD. This change is attributed to the recognition of operating lease liabilities, with non-current operating lease liabilities stabilizing between 1.57 billion USD and 1.69 billion USD from 2020 through 2023. Total liabilities reached 3.41 billion USD by January 2023, reflecting a heavier reliance on lease-based financing for physical locations.
Stockholders' Equity and Capital Management: Stockholders' equity remained relatively stable overall, ending the period at 1.96 billion USD compared to 1.77 billion USD in 2018. However, internal fluctuations are evident in retained earnings, which peaked at 1.19 billion USD in 2021 before dropping sharply to 653.4 million USD in 2022, and subsequently recovering to 995.8 million USD in 2023. The consistent increase in treasury stock, moving from a negative 18.8 million USD to 60.5 million USD, indicates an ongoing strategy of share repurchases.
Capital Structure and Solvency Trends: The ratio of total liabilities to stockholders' equity shifted markedly over the six-year period. In 2018, liabilities represented approximately 63.7% of total equity; by 2023, this proportion increased to 173.8%. This trend is primarily a result of the accounting treatment of leases rather than an increase in traditional long-term debt, as other long-term liabilities remained relatively low, fluctuating between 25 million USD and 58.7 million USD.

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