ELF Beauty Inc (ELF)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 1.57 | 2.32 | 1.66 | 1.97 |
| Receivables turnover | — | 8.27 | 8.52 | 8.61 | 7.92 |
| Payables turnover | — | 3.70 | 6.00 | 7.30 | 7.13 |
| Working capital turnover | — | 5.75 | 2.96 | 3.06 | 3.29 |
ELF Beauty Inc's inventory turnover has fluctuated over the years, from 1.97 in March 2021 to 2.32 in March 2023, and then decreasing to 1.57 in March 2024. This indicates a moderate efficiency in the management of inventory levels. A higher inventory turnover ratio suggests that the company is selling its products quickly.
The receivables turnover ratio has been relatively consistent, ranging from 7.92 in March 2021 to 8.61 in March 2022, showing a stable collection of receivables over the years. A higher receivables turnover ratio signifies that the company is efficiently collecting payments from its customers.
In contrast, the payables turnover ratio has declined over the years, from 7.13 in March 2021 to 3.70 in March 2024, indicating a decreasing efficiency in managing payables. A lower payables turnover ratio could imply that the company is taking longer to pay its suppliers.
The working capital turnover ratio has shown variability, from 3.29 in March 2021 to 5.75 in March 2024, suggesting changes in how well the company is utilizing its working capital to generate sales. A higher working capital turnover ratio indicates that the company is effectively using its working capital to support its operations.
Overall, analyzing these activity ratios provides insights into ELF Beauty Inc's management of inventory, receivables, payables, and working capital, which are crucial components of its operational efficiency and financial performance. These ratios are important for assessing the company's liquidity, efficiency, and overall financial health.
Average number of days
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 233.11 | 157.51 | 219.63 | 185.29 |
| Days of sales outstanding (DSO) | days | — | 44.13 | 42.83 | 42.41 | 46.11 |
| Number of days of payables | days | — | 98.70 | 60.87 | 49.98 | 51.20 |
ELF Beauty Inc's activity ratios provide insights into the efficiency of the company's operations in managing inventory, collecting receivables, and paying off its payables.
1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how many days on average the company holds inventory before selling it.
- From March 31, 2021, to March 31, 2024, ELF Beauty Inc showed fluctuating trends in managing its inventory effectively.
- There was a significant increase in DOH from March 31, 2021 (185.29 days) to March 31, 2024 (233.11 days), indicating potential issues with inventory management efficiency.
- However, a notable decrease in DOH was observed by March 31, 2025 (exact days not provided), which could suggest improvements in inventory control.
2. Days of Sales Outstanding (DSO):
- The DSO ratio indicates how long it takes the company to collect payment from its customers.
- ELF Beauty Inc managed its DSO relatively consistently from March 31, 2021 (46.11 days) to March 31, 2024 (44.13 days), reflecting a stable collection process.
- The slight decrease in DSO over the years suggests efficient credit and collection practices.
3. Number of Days of Payables:
- This ratio reflects the average number of days the company takes to pay its suppliers.
- ELF Beauty Inc's days of payables increased significantly from March 31, 2021 (51.20 days) to March 31, 2024 (98.70 days).
- The prolonged payment period could have both positive and negative implications, such as improved cash flow but potentially strained supplier relationships.
Overall, analyzing these activity ratios indicates the company's effectiveness in managing inventory, collecting receivables, and paying its payables. Monitoring these ratios over time can help identify operational strengths and potential areas for improvement within ELF Beauty Inc's supply chain and financial processes.
See also:
Long-term
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 73.51 | 37.08 | 8.47 |
| Total asset turnover | — | 0.91 | 0.97 | 0.79 | 0.65 |
ELF Beauty Inc's fixed asset turnover has shown a significant improvement over the years, increasing from 8.47 in 2021 to 73.51 in 2023. This indicates that the company is generating more revenue from its fixed assets, which is a positive sign of efficient asset utilization. However, the data for 2024 and 2025 is not available, so it is difficult to assess the trend in the recent years.
In terms of total asset turnover, ELF Beauty Inc's performance has also been improving, with the ratio increasing from 0.65 in 2021 to 0.97 in 2023. This suggests that the company is generating more sales relative to its total assets, which is a favorable indication of operational efficiency.
Overall, based on the available data, it can be inferred that ELF Beauty Inc has been effectively utilizing its assets to drive sales growth and improve operational efficiency, as evidenced by the increasing trend in both fixed asset turnover and total asset turnover ratios.