Ulta Beauty Financial Statement

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Ulta Beauty, Incorporated was founded in 1990 as a beauty retailer by Richard George, a former Osco drug Inc. president. In 1990, it was difficult for a consumer to purchase beauty products without shopping at various retail locations. Comparatively, Ulta Beauty offered a concept of All Things Beauty, All in One Place™. It is currently the largest retailer in the United States offering 200,000 products from 500 beauty brands through brick and mortar stores and e-commerce. The company offers fragrances, hair care products, skin care products, full service salons, and cosmetics. On January 29, 2017 Ulta Beauty held a company reorganization and replaced Ulta Salon, Cosmetics & Fragrance, Incorporated to a wholly owned subsidiary of Ulta Beauty. …show more content…

Sally’s Beauty Holding, Inc., who has a current ratio of 2.4, is quicker to turn their current asset into cash but also is not investing excess assets. Both companies are able to meet their debt obligations. On the other hand, Coty’s Inc. current liabilities exceeds their current assets revealing their current ratio to be .94. Having a ratio below one can imply that current assets are barely being covered by the current liabilities. Ulta Beauty’s debt-to-equity is estimated to be .65, which reveals Ulta Beauty to have a low risk and not using high amounts of debt to finance operations, because total liabilities is $1,001,660 and total shareholders’ equity is $1,550,218. Sally’s Beauty has a debt-to-equity ratio of -8.7 because of the total shareholders’ deficit. A negative ratio indicates Sally’s Beauty is heavily taking on debt and receiving a low investment return. Coty Inc. has a debt-to-equity ratio of 1.36 meaning for every dollar of equity its shareholder owns, the company owes $1.36 putting Coty Inc. in a possible financial distress. Ulta Beauty is doing a decent job in converting its investments into profit with a return on asset (ROA) of 16.06 % with the net income being $409,760 and the total assets to $2,551,878.

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