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Analysis of Ulta Beauty, Inc
Amir Stargen
University of South Alabama
10/7/2020
MGT 300-701
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Introduction
Ulta beauty was founded in 1990 as a large U.S beauty retailer and beauty product destination
for cosmetics, fragrance, skin care products, hair care, and salon services (Ulta Beauty,2020).
Their chief executive officer is Mary Dillion and their CO sales manager is Arielle F. Ulta
Beauty has over 45,000 associates and 92 percent of their associates are females (Ulta
Beauty,2020). The reason of why Ulta Beauty has so many associates is because they have now
invested in new benefits and policies for their associates. The new benefits that they have now
invested in are launched tuition reimbursement, implanted, and extended illness bank, increased
short term disability pay for 60 percent to 80 percent pay and they established flexible work
arrangement (Ulta Beauty, 2020). Ulta Beauty has mission, vision, and values. Their mission is
to bring out their beauty to help others and associates to build a fulfilling (Ulta Beauty,2020) .
Next, their vision is to be the most loved beauty destination and most admired retailer by their
associates, customers, and investors. Lastly, their values are that they work hard with their
mission and vision with everything that they do (Ulta Beauty,2020). As far as their corporate
team, Ulta beauty is collaborated with the “Corporate of Energy Team”. The Corporate of
Energy Team focuses on managing energy use wisely and conserving resources (Ulta
Beauty,2020).
Financial Analysis
As far as financial stability, Ulta Beauty has many strengths and weaknesses. The current ratio
for my company Ulta Beauty compared to its competitor Sally Beauty Holdings, Ulta has a
higher current ratio while Sally Beauty Holdings has 1.9x (NetAdvantage,2020). Which is good
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since a higher ratio means that Ulta has a good chance of having enough money to pay off their
assets. Next, is total debt to equity ratio which is the amount of money that a company uses to
help support their own business. When the total debt to equity ratio is too high, the company
seems like a risk to investors. However, if the company has a low debt ratio then it shows
investors that they have enough money invested to help run their business successfully. Ulta
Beauty’s total debt to equity is 156.10 percent while their competitors is not meaningful because
it is a negative number (NetAdvantage,2020). So, both companies are not good to invest in
because they are in huge debt. Lastly, return on assets is the percentage of how much money a
company is benefiting from their earnings. This percentage generating tells you if the company’s
management is beneficial or not in generating their investments into income. Ulta Beauty’s
return on assets is 5.20 percent and its competitors is 6.30 percent compared to both company’s
