Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Ulta Beauty Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Ulta Beauty Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Ulta Beauty Inc. operating profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Ulta Beauty Inc. net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Ulta Beauty Inc. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Ulta Beauty Inc. ROA improved from 2021 to 2022 and from 2022 to 2023. |
Gross Profit Margin
Ulta Beauty Inc., gross profit margin calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross profit | 4,044,510) | 3,368,554) | 1,949,159) | 2,681,064) | 2,409,311) | 2,096,809) | |
| Net sales | 10,208,580) | 8,630,889) | 6,151,953) | 7,398,068) | 6,716,615) | 5,884,506) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 39.62% | 39.03% | 31.68% | 36.24% | 35.87% | 35.63% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 46.98% | 43.81% | 42.03% | 39.57% | 40.99% | — | |
| Home Depot Inc. | 33.53% | 33.63% | 33.95% | 34.09% | 34.34% | — | |
| Lowe’s Cos. Inc. | 33.23% | 33.30% | 33.01% | 31.80% | 32.12% | — | |
| TJX Cos. Inc. | 27.61% | 28.50% | 23.66% | 28.46% | 28.59% | — | |
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 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 4,044,510 ÷ 10,208,580 = 39.62%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Ulta Beauty Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
Ulta Beauty Inc., operating profit margin calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Operating income | 1,638,610) | 1,297,492) | 236,820) | 901,094) | 854,080) | 785,291) | |
| Net sales | 10,208,580) | 8,630,889) | 6,151,953) | 7,398,068) | 6,716,615) | 5,884,506) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 16.05% | 15.03% | 3.85% | 12.18% | 12.72% | 13.35% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 6.41% | 2.38% | 5.30% | 5.93% | 5.18% | — | |
| Home Depot Inc. | 15.27% | 15.24% | 13.84% | 14.37% | 14.35% | — | |
| Lowe’s Cos. Inc. | 10.47% | 12.56% | 10.77% | 8.75% | 5.63% | — | |
| TJX Cos. Inc. | 9.73% | 9.79% | 1.81% | 10.59% | 10.82% | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 8.63% | 6.44% | 7.38% | 8.11% | 7.68% | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | 9.14% | 8.09% | 8.18% | 5.56% | 7.83% | — | |
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 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 1,638,610 ÷ 10,208,580 = 16.05%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Ulta Beauty Inc. operating profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
Ulta Beauty Inc., net profit margin calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 1,242,408) | 985,837) | 175,835) | 705,945) | 658,559) | 555,234) | |
| Net sales | 10,208,580) | 8,630,889) | 6,151,953) | 7,398,068) | 6,716,615) | 5,884,506) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 12.17% | 11.42% | 2.86% | 9.54% | 9.80% | 9.44% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 5.29% | -0.53% | 7.10% | 5.53% | 4.13% | — | |
| Home Depot Inc. | 10.87% | 10.87% | 9.74% | 10.20% | 10.28% | — | |
| Lowe’s Cos. Inc. | 6.63% | 8.77% | 6.51% | 5.93% | 3.25% | — | |
| TJX Cos. Inc. | 7.00% | 6.76% | 0.28% | 7.84% | 7.85% | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 6.54% | 3.14% | 7.21% | 6.58% | 5.63% | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | 7.82% | 4.67% | 8.37% | 4.18% | 6.13% | — | |
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 2023 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,242,408 ÷ 10,208,580 = 12.17%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Ulta Beauty Inc. net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
Ulta Beauty Inc., ROE calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Amazon.com Inc. | 15.07% | -1.86% | 24.13% | 22.84% | 18.67% | — | |
| Home Depot Inc. | 1,095.07% | — | 390.00% | — | — | — | |
| Lowe’s Cos. Inc. | — | — | 406.05% | 217.09% | 63.50% | — | |
| TJX Cos. Inc. | 54.97% | 54.69% | 1.55% | 55.01% | 60.61% | — | |
| ROE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 29.39% | 17.48% | 35.05% | 40.86% | 40.77% | — | |
| ROE, Industry | |||||||
| Consumer Discretionary | 30.04% | 19.34% | 30.06% | 18.33% | 31.35% | — | |
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 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,242,408 ÷ 1,959,811 = 63.39%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Ulta Beauty Inc. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Return on Assets (ROA)
Ulta Beauty Inc., ROA calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Amazon.com Inc. | 5.76% | -0.59% | 7.93% | 6.64% | 5.14% | — | |
| Home Depot Inc. | 22.38% | 22.86% | 18.23% | 21.94% | 25.27% | — | |
| Lowe’s Cos. Inc. | 14.73% | 18.91% | 12.49% | 10.85% | 6.71% | — | |
| TJX Cos. Inc. | 12.34% | 11.53% | 0.29% | 13.55% | 21.36% | — | |
| ROA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 8.50% | 4.19% | 9.17% | 9.20% | 8.83% | — | |
| ROA, Industry | |||||||
| Consumer Discretionary | 7.44% | 4.36% | 7.07% | 3.39% | 5.64% | — | |
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).
1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,242,408 ÷ 5,370,411 = 23.13%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Ulta Beauty Inc. ROA improved from 2021 to 2022 and from 2022 to 2023. |