ELF Beauty Inc (ELF)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		5.55	4.66	5.08	4.67	3.73	4.37	5.87	6.38	5.44	5.02	5.48	4.38	3.13	3.39	4.52	3.91	3.24	3.21	3.69	4.01
DOH	days	65.74	78.30	71.90	78.13	97.77	83.49	62.21	57.19	67.08	72.72	66.60	83.28	116.59	107.77	80.82	93.45	112.78	113.72	98.97	91.01

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.55
= 65.74

ELF Beauty Inc's Days of Inventory on Hand (DOH) provides insight into the company's efficiency in managing its inventory levels. A lower DOH value indicates that the company is selling its inventory quickly, while a higher value suggests that inventory may be sitting on shelves for a longer period.

Analyzing the trend in ELF Beauty Inc's DOH over the specified time period, we observe fluctuations in the metric. The company's DOH was relatively high at around 91.01 days as of March 31, 2020, which increased to 113.72 days by September 30, 2020. This increase could imply that inventory turnover was slowing down or that there was excess inventory on hand during that period.

Subsequently, the DOH declined to 80.82 days by June 30, 2021, indicating an improvement in inventory management efficiency. However, the DOH increased again to 116.59 days by December 31, 2021, before showing a decreasing trend in the following periods.

By March 31, 2024, the DOH had decreased to 57.19 days, signaling that the company was able to reduce the number of days it held inventory before selling it. This trend suggests that ELF Beauty Inc has been working on optimizing its inventory management processes, potentially by aligning production levels with customer demand or by implementing more effective inventory control measures.

Overall, monitoring ELF Beauty Inc's DOH over time can provide valuable insights into the company's operational efficiency and inventory management practices, allowing stakeholders to assess the effectiveness of its inventory control strategies.