Ulta Beauty, Inc. — Earnings Quality Grade F
ULTA · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
Insufficient data
Insufficient data
Revenue 9.7%, CFFO 12.3%. Cash follows revenue
Expense Quality
Inventory 10.8% vs COGS 9.3%. Normal
CapEx growth 16.1% vs revenue 9.7%. Normal
SG&A/Gross Profit = 68.0%. Normal
Gross margin 39.1%, change +0.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.30. Profits backed by cash
FCF $1.1B, FCF/NI = 0.93
Accruals ratio = -5.0%. Low accruals
Cash $0.5B covers only 23% of debt $2.2B
Balance Sheet Health
Goodwill+Intangibles $0.4B = 15% of equity. Manageable
Debt/EBITDA = 1.2x. Healthy
Other assets grew 142.2% vs revenue 9.7%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 3780% YoY
Manipulation Score
Insufficient data
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10