Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Ulta Beauty Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Net income	1,242,408)	985,837)	175,835)	705,945)	658,559)	555,234)
Depreciation and amortization	241,372)	268,460)	297,772)	295,599)	279,472)	252,713)
Non-cash lease expense	301,912)	276,229)	268,071)	278,820)	—)	—)
Long-lived asset impairment charge	—)	—)	72,533)	—)	—)	—)
Deferred income taxes	15,653)	(25,666)	(24,008)	5,503)	34,080)	(27,095)
Stock-based compensation expense	43,044)	47,259)	27,583)	25,045)	26,636)	24,399)
Loss on disposal of property and equipment	6,688)	5,358)	6,827)	5,850)	2,885)	7,518)
Receivables	34,260)	(40,573)	(53,772)	(20,637)	(36,387)	(11,088)
Merchandise inventories	(104,233)	(331,003)	125,486)	(79,372)	(122,019)	(152,449)
Prepaid expenses and other current assets	(19,432)	(3,412)	(4,363)	9,289)	(39,450)	(10,045)
Income taxes	(45,182)	(35,652)	58,916)	610)	(29,609)	3,641)
Accounts payable	8,309)	66,156)	62,324)	9,993)	78,256)	66,240)
Accrued liabilities	48,249)	58,598)	58,599)	28,183)	29,265)	(30,695)
Deferred revenue	41,098)	79,196)	36,848)	38,481)	50,684)	67,586)
Operating lease liabilities	(324,500)	(303,914)	(297,513)	(256,910)	—)	—)
Deferred rent	—)	—)	—)	—)	27,064)	41,725)
Other assets and liabilities	(7,731)	12,392)	(783)	54,894)	(3,309)	(8,318)
Change in operating assets and liabilities	(369,162)	(498,212)	(14,258)	(215,469)	(45,505)	(33,403)
Adjustments to reconcile net income to net cash provided by operating activities	239,507)	73,428)	634,520)	395,348)	297,568)	224,132)
Net cash provided by operating activities	1,481,915)	1,059,265)	810,355)	1,101,293)	956,127)	779,366)
Purchases of short-term investments	—)	—)	—)	(110,000)	(386,193)	(330,000)
Proceeds from short-term investments	—)	—)	110,000)	—)	506,193)	240,000)
Capital expenditures	(312,126)	(172,187)	(151,866)	(298,534)	(319,400)	(440,714)
Acquisitions, net of cash acquired	—)	—)	(1,220)	—)	(13,606)	—)
Other investments	(2,458)	(4,297)	(5,665)	(62,946)	(2,101)	—)
Net cash used in investing activities	(314,584)	(176,484)	(48,751)	(471,480)	(215,107)	(530,714)
Proceeds from long-term debt	—)	—)	800,000)	—)	—)	—)
Payments on long-term debt	—)	—)	(800,000)	—)	—)	—)
Repurchase of common shares	(900,033)	(1,521,925)	(114,895)	(680,979)	(616,194)	(367,581)
Stock options exercised	46,011)	40,386)	12,229)	43,780)	13,121)	16,190)
Purchase of treasury shares	(6,992)	(15,677)	(3,353)	(9,540)	(6,141)	(4,243)
Debt issuance costs	—)	—)	(1,915)	—)	—)	(583)
Net cash used in financing activities	(861,014)	(1,497,216)	(107,934)	(646,739)	(609,214)	(356,217)
Effect of exchange rate changes on cash and cash equivalents	—)	(56)	56)	—)	—)	—)
Net increase (decrease) in cash and cash equivalents	306,317)	(614,491)	653,726)	(16,926)	131,806)	(107,565)
Cash and cash equivalents at beginning of year	431,560)	1,046,051)	392,325)	409,251)	277,445)	385,010)
Cash and cash equivalents at end of year	737,877)	431,560)	1,046,051)	392,325)	409,251)	277,445)

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).

Net Income: Net income demonstrated an overall increasing trend with fluctuations. It rose steadily from 555,234 thousand US dollars in 2018 to 705,945 thousand in 2020, then sharply declined to 175,835 thousand in 2021, followed by a strong recovery to 1,242,408 thousand by 2023.
Depreciation and Amortization: This expense showed mild variability, peaking at 297,772 thousand in 2021 before declining to 241,372 thousand in 2023, indicating a potential reduction in capitalized costs or asset base adjustments.
Non-cash Lease Expense: Reported starting in 2020, non-cash lease expenses remained relatively stable, with a slight increase from 278,820 thousand to 301,912 thousand by 2023, reflecting ongoing lease obligations.
Long-lived Asset Impairment Charge: Only recorded in 2021 at 72,533 thousand, this charge indicates a one-time write-down of long-lived assets, which may have influenced the net income dip in the same year.
Deferred Income Taxes: Deferred income taxes fluctuated between negative and positive values, with no consistent pattern, indicating variable tax timing differences across years.
Stock-based Compensation Expense: This expense increased steadily overall, from 24,399 thousand in 2018 to a peak of 47,259 thousand in 2022, before a slight decrease to 43,044 thousand in 2023, suggesting an increasing use of stock-based incentives.
Other Operating Expenses and Assets/Liabilities: Loss on disposal of property and equipment fluctuated without a clear trend. Receivables and merchandise inventories showed significant variability: merchandise inventories notably swung from a negative to a positive value and back to negative, signaling volatile inventory management. Prepaid expenses and other assets also fluctuated widely, reflecting changing operational conditions.
Working Capital Changes: Changes in operating assets and liabilities were highly volatile, ranging from negative 334,03 thousand to negative 498,212 thousand in 2022, indicating significant swings in working capital components.
Net Cash Provided by Operating Activities: Operating cash flow increased overall from 779,366 thousand in 2018 to 1,481,915 thousand in 2023, with some decrease in 2021, mirroring the net income trend but showing greater resilience.
Investing Activities: Capital expenditures decreased from 440,714 thousand in 2018 to 151,866 thousand in 2021, then increased again to 312,126 thousand in 2023, suggesting fluctuating investment intensity. Net cash used in investing activities was generally negative, reflecting ongoing investment outflows.
Financing Activities: Significant outflows from repurchase of common shares were consistent, increasing sharply to 1,521,925 thousand in 2022 before slightly reducing. Stock option exercises provided modest inflows. Net cash used in financing activities was generally negative, with a notable peak in outflows in 2022.
Cash and Cash Equivalents: Cash balances showed variability, peaking at over 1 billion in 2021 before declining sharply in 2022 and rising again in 2023. The net increase/decrease in cash mirrored these patterns with large fluctuations reflecting operational and financing cash flows.

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Ulta Beauty Inc. (NASDAQ:ULTA)

Cash Flow Statement