Debt-to-Equity Ratio

The debt-to-equity ratio compares a company’s total liabilities to its shareholders’ equity, with a lower number indicating less reliance on borrowed money.

ULTA’s current ratio of 0.06x means that for every dollar of equity, the company has only six cents of debt — a very conservative capital structure. This is well below the sector median of 0.74x, placing ULTA in the 12th percentile among its peers, meaning 88% of sector companies carry more debt relative to equity. Year-over-year and quarter-over-quarter changes are not available (N/A), so there is no trend data to assess whether leverage is increasing or decreasing. The combination of an extremely low debt level and no observable trend suggests limited financial risk from leverage, but also offers no insight into recent management decisions regarding capital structure. This metric supports the overall NEUTRAL verdict because the low debt is a positive factor, yet the absence of trend data and the neutral rating imply other aspects of the business may be offsetting this strength.

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