Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Ulta Beauty's 5-Year RORE % for the quarter that ended in Jan. 2024 was 16.67%.
The industry rank for Ulta Beauty's 5-Year RORE % or its related term are showing as below:
ULTA's 5-Year RORE % is ranked better than 61.08% of 889
companies
in the Retail - Cyclical industry
Industry Median: 7.1
vs ULTA: 16.67
Ulta Beauty 5-Year RORE % Historical Data
The historical data trend for Ulta Beauty's 5-Year RORE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Ulta Beauty's 5-Year RORE %
For the Specialty Retail subindustry, Ulta Beauty's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ulta Beauty's 5-Year RORE % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ulta Beauty's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Ulta Beauty's 5-Year RORE % falls into.
Ulta Beauty 5-Year RORE % Calculation
Ulta Beauty's 5-Year RORE % for the quarter that ended in Jan. 2024 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jan. 2024 and 5-year before.
Ulta Beauty (NAS:ULTA) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Ulta Beauty 5-Year RORE % Related Terms
Thank you for viewing the detailed overview of Ulta Beauty's 5-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.
With 1,355 stores at the end of fiscal 2022 and a partnership with Target, Ulta Beauty is the largest specialized beauty retailer in the U.S. The firm offers makeup (42% of 2022 sales), fragrances, skin care, and hair care products (21% of 2022 sales), and bath and body items. Ulta offers private-label products and merchandise from more than 500 vendors. It also offers salon services, including hair, makeup, skin, and brow services, in all stores. Most Ulta stores are approximately 10,000 square feet and are in suburban strip centers. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
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