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Ulta Beauty (LTS:0LIB) Sloan Ratio % : 3.59% (As of Oct. 2024)


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What is Ulta Beauty Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Ulta Beauty's Sloan Ratio for the quarter that ended in Oct. 2024 was 3.59%.

As of Oct. 2024, Ulta Beauty has a Sloan Ratio of 3.59%, indicating the company is in the safe zone and there is no funny business with accruals.


Ulta Beauty Sloan Ratio % Historical Data

The historical data trend for Ulta Beauty's Sloan Ratio % 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.

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Ulta Beauty Sloan Ratio % Chart

Ulta Beauty Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.57 -11.51 2.16 1.40 4.49

Ulta Beauty Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.05 4.49 6.24 4.00 3.59

Competitive Comparison of Ulta Beauty's Sloan Ratio %

For the Specialty Retail subindustry, Ulta Beauty's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Ulta Beauty's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Ulta Beauty's Sloan Ratio % falls into.



Ulta Beauty Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Ulta Beauty's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as

Sloan Ratio=(Net Income (A: Jan. 2024 )-Cash Flow from Operations (A: Jan. 2024 )
-Cash Flow from Investing (A: Jan. 2024 ))/Total Assets (A: Jan. 2024 )
=(1291.005-1476.266
--441.425)/5707.011
=4.49%

Ulta Beauty's Sloan Ratio for the quarter that ended in Oct. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Oct. 2024 )
=(1202.217-1420.296
--432.169)/5958.486
=3.59%

Ulta Beauty's Net Income for the trailing twelve months (TTM) ended in Oct. 2024 was 394.369 (Jan. 2024 ) + 313.113 (Apr. 2024 ) + 252.556 (Jul. 2024 ) + 242.179 (Oct. 2024 ) = $1,202 Mil.
Ulta Beauty's Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2024 was 1118.255 (Jan. 2024 ) + 159.34 (Apr. 2024 ) + 199.539 (Jul. 2024 ) + -56.838 (Oct. 2024 ) = $1,420 Mil.
Ulta Beauty's Cash Flow from Investing for the trailing twelve months (TTM) ended in Oct. 2024 was -125.525 (Jan. 2024 ) + -93.587 (Apr. 2024 ) + -97.805 (Jul. 2024 ) + -115.252 (Oct. 2024 ) = $-432 Mil.

* 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.


Ulta Beauty  (LTS:0LIB) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Oct. 2024, Ulta Beauty has a Sloan Ratio of 3.59%, indicating the company is in the safe zone and there is no funny business with accruals.


Ulta Beauty Sloan Ratio % Related Terms

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Ulta Beauty Business Description

Address
1000 Remington Boulevard, Suite 120, Bolingbrook, IL, USA, 60440
With 1,385 stores at the end of fiscal 2023 and a partnership with Target, Ulta Beauty is the largest specialized beauty retailer in the US. The firm offers makeup (41% of 2023 sales), fragrances, skin care (19% of sales), and hair care products (19% of sales), and bath and body items. Ulta offers private-label products and more than 600 individual brands. 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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