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Ulta Beauty's Weak Inventory Turnover Ratio

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In comparison to Ulta’s big competitors another weakness Ulta possess is there inventory turnover ratio. When a company have a weak inventory turnover ratio signifies that the company in this case Ulta Beauty has a high inventory carrying cost. This high inventory carrying cost is affecting Ulta Beauty’s operating performance. In comparison to its competitors this means that Ulta Beauty takes longer to clear out its inventory. In the fiscal year 2017, Ulta Beauty reported a weak inventory turnover ratio. Nordstrom, Inc. reported a ratio turnover of 5 and Regis Corporation reported a value of 9.2. Regis Corporation takes about 40 days to clear out their inventory, Nordstrom another big competitor takes 73 days to clear out their inventory.

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