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Ulta Salon Cosmetics & Fragrance Inc (NAS:ULTA)
Cash, Cash Equivalents, Marketable Securities
$476 Mil (As of Jan. 2016)

Ulta Salon Cosmetics & Fragrance Inc's quarterly cash, cash equivalents, marketable securities declined from Jul. 2015 ($475.42 Mil) to Oct. 2015 ($359.76 Mil) but then increased from Oct. 2015 ($359.76 Mil) to Jan. 2016 ($475.84 Mil).

Ulta Salon Cosmetics & Fragrance Inc's annual cash, cash equivalents, marketable securities increased from Jan. 2014 ($419.48 Mil) to Jan. 2015 ($539.36 Mil) but then declined from Jan. 2015 ($539.36 Mil) to Jan. 2016 ($475.84 Mil).


Definition

Cash and cash equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash, such as money market holdings, short-term government bonds or Treasury bills, marketable securities and commercial paper.

Marketable Securities are very liquid securities that can be converted into cash quickly at a reasonable price.


Explanation

Marketable securities are very liquid as they tend to have maturities of less than one year. Furthermore, the rate at which these securities can be bought or sold has little effect on their prices.

A high number means either:

1) The company has competitive advantage generating lots of cash

2) Just sold a business or bonds (not necessarily good)

A low stockpile of cash usually means poor to mediocre economics.

There are 3 ways to create large cash reserve.

1) Sell new bonds or equity to public

2) Sell business or asset

3) It has an ongoing business generating more cash than it burns (usually means durable competitive advantage)

When a company is suffering a short term problem, Buffett looks at cash or marketable securities to see whether it has the financial strength to ride it out.

Important: Lots of cash and marketable securities + little debt = good chance that the business will sail on through tough times.

Test to see what is creating cash by looking at past 7 yrs of balance sheets. This will reveal how the cash was created.


Related Terms

Cash and Cash Equivalents, Marketable Securities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Ulta Salon Cosmetics & Fragrance Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Cash, Cash Equivalents,
Marketable Securities
4444111254320419539476

Ulta Salon Cosmetics & Fragrance Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
Cash, Cash Equivalents,
Marketable Securities
241419457463395539536475360476
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