Return on Assets (ROA)
since 2008
Calculation
Ulta Beauty Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Jan 28, 2023 | 23.13% | = | 100 | × | 1,242,408) | ÷ | 5,370,411) |
| Jan 29, 2022 | 20.69% | = | 100 | × | 985,837) | ÷ | 4,764,379) |
| Jan 30, 2021 | 3.45% | = | 100 | × | 175,835) | ÷ | 5,089,969) |
| Feb 1, 2020 | 14.51% | = | 100 | × | 705,945) | ÷ | 4,863,872) |
| Feb 2, 2019 | 20.64% | = | 100 | × | 658,559) | ÷ | 3,191,172) |
| Feb 3, 2018 | 19.09% | = | 100 | × | 555,234) | ÷ | 2,908,687) |
| Jan 28, 2017 | 16.06% | = | 100 | × | 409,760) | ÷ | 2,551,878) |
| Jan 30, 2016 | 14.34% | = | 100 | × | 320,008) | ÷ | 2,230,918) |
| Jan 31, 2015 | 12.97% | = | 100 | × | 257,135) | ÷ | 1,983,170) |
| Feb 1, 2014 | 12.66% | = | 100 | × | 202,849) | ÷ | 1,602,727) |
| Feb 2, 2013 | 13.53% | = | 100 | × | 172,549) | ÷ | 1,275,249) |
| Jan 28, 2012 | 12.56% | = | 100 | × | 120,264) | ÷ | 957,217) |
| Jan 29, 2011 | 9.72% | = | 100 | × | 71,030) | ÷ | 730,488) |
| Jan 30, 2010 | 7.11% | = | 100 | × | 39,356) | ÷ | 553,635) |
| Jan 31, 2009 | 4.44% | = | 100 | × | 25,268) | ÷ | 568,932) |
| Feb 2, 2008 | 5.40% | = | 100 | × | 25,335) | ÷ | 469,413) |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02).
1 US$ in thousands
An analysis of the financial performance from 2008 to 2023 reveals a long-term upward trajectory in asset utilization efficiency, characterized by a consistent increase in Return on Assets (ROA), despite a significant period of volatility between 2020 and 2021.
- Long-Term Growth Phase (2008–2019)
- A sustained period of expansion is observed, where ROA climbed from 5.40% in 2008 to a peak of 20.64% in 2019. This growth was driven by a substantial increase in net income, which rose from approximately 25.3 million US dollars to 658.6 million US dollars over this period. While total assets grew concurrently from 469.4 million US dollars to 3.19 billion US dollars, the rate of profit growth outpaced asset accumulation, indicating improving operational efficiency.
- Period of Volatility (2020–2021)
- A sharp decline in profitability is evident during the 2020 and 2021 fiscal years. ROA dropped from 14.51% in 2020 to a historical low of 3.45% in 2021. This contraction is primarily attributed to a precipitous fall in net income, which reached a low of 175.8 million US dollars in 2021, while the total asset base remained elevated at over 5 billion US dollars, resulting in a temporary misalignment between asset investment and earnings generation.
- Recovery and Peak Performance (2022–2023)
- A rapid recovery followed the 2021 trough, with ROA rebounding to 20.69% in 2022 and reaching a record high of 23.13% by January 28, 2023. This recovery is marked by a surge in net income to 1.24 billion US dollars. The fact that ROA surpassed pre-pandemic levels suggests a successful optimization of the asset base and a strong restoration of profit margins.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Ulta Beauty Inc., ROA, long-term trends, comparison to competitors
| Ulta Beauty Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Jan 28, 2023 | 23.13% | 5.76% | 22.38% | 14.73% | 12.34% |
| Jan 29, 2022 | 20.69% | -0.59% | 22.86% | 18.91% | 11.53% |
| Jan 30, 2021 | 3.45% | 7.93% | 18.23% | 12.49% | 0.29% |
| Feb 1, 2020 | 14.51% | 6.64% | 21.94% | 10.85% | 13.55% |
| Feb 2, 2019 | 20.64% | 5.14% | 25.27% | 6.71% | 21.36% |
| Feb 3, 2018 | 19.09% | 6.19% | 19.38% | 9.77% | 18.55% |
| Jan 28, 2017 | 16.06% | 2.31% | 18.52% | 8.99% | 17.84% |
| Jan 30, 2016 | 14.34% | 2.84% | 16.47% | 8.14% | 19.81% |
| Jan 31, 2015 | 12.97% | 0.91% | 15.88% | 8.48% | 19.91% |
| Feb 1, 2014 | 12.66% | -0.44% | 13.29% | 6.98% | 20.95% |
| Feb 2, 2013 | 13.53% | 0.68% | 11.04% | 6.00% | 20.05% |
| Jan 28, 2012 | 12.56% | -0.12% | 9.58% | 5.48% | 18.07% |
| Jan 29, 2011 | 9.72% | 2.50% | 8.32% | 5.96% | 16.85% |
| Jan 30, 2010 | 7.11% | 6.13% | 6.51% | 5.40% | 16.26% |
| Jan 31, 2009 | 4.44% | 6.53% | 5.49% | 6.72% | 14.25% |
| Feb 2, 2008 | 5.40% | 7.76% | 9.92% | 9.10% | 11.69% |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Ulta Beauty Inc., ROA, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Ulta Beauty Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 28, 2023 | 23.13% | 8.50% |
| Jan 29, 2022 | 20.69% | 4.19% |
| Jan 30, 2021 | 3.45% | 9.17% |
| Feb 1, 2020 | 14.51% | 9.20% |
| Feb 2, 2019 | 20.64% | 8.83% |
| Feb 3, 2018 | 19.09% | 9.65% |
| Jan 28, 2017 | 16.06% | 7.39% |
| Jan 30, 2016 | 14.34% | 8.42% |
| Jan 31, 2015 | 12.97% | 7.99% |
| Feb 1, 2014 | 12.66% | 6.94% |
| Feb 2, 2013 | 13.53% | 7.03% |
| Jan 28, 2012 | 12.56% | 6.25% |
| Jan 29, 2011 | 9.72% | 6.84% |
| Jan 30, 2010 | 7.11% | 6.80% |
| Jan 31, 2009 | 4.44% | 6.65% |
| Feb 2, 2008 | 5.40% | 9.57% |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02).
Comparison to Industry (Consumer Discretionary)
Ulta Beauty Inc., ROA, long-term trends, comparison to industry (consumer discretionary)
| Ulta Beauty Inc. | Consumer Discretionary | |
|---|---|---|
| Jan 28, 2023 | 23.13% | 7.57% |
| Jan 29, 2022 | 20.69% | 4.81% |
| Jan 30, 2021 | 3.45% | 7.99% |
| Feb 1, 2020 | 14.51% | 4.36% |
| Feb 2, 2019 | 20.64% | 5.57% |
| Feb 3, 2018 | 19.09% | 5.96% |
| Jan 28, 2017 | 16.06% | 4.05% |
| Jan 30, 2016 | 14.34% | 5.57% |
| Jan 31, 2015 | 12.97% | 6.25% |
| Feb 1, 2014 | 12.66% | 4.75% |
| Feb 2, 2013 | 13.53% | 5.52% |
| Jan 28, 2012 | 12.56% | 5.65% |
| Jan 29, 2011 | 9.72% | 9.48% |
| Jan 30, 2010 | 7.11% | 6.05% |
| Jan 31, 2009 | 4.44% | 4.67% |
| Feb 2, 2008 | 5.40% | 0.21% |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02).