ELF Beauty Inc (ELF)

Days of sales outstanding (DSO)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Receivables turnover		8.21	8.49	8.55	7.81	9.30
DSO	days	44.43	43.00	42.71	46.71	39.23

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.21
= 44.43

ELF Beauty Inc's days of sales outstanding (DSO) have shown a slightly increasing trend over the past five years, reaching 44.43 days as of March 31, 2024, compared to 39.23 days in March 31, 2020. This indicates that, on average, it takes ELF Beauty Inc 44.43 days to collect its accounts receivable from customers.

While the increase in DSO may suggest that the company is taking longer to collect payments from customers, it is important to consider industry standards and company-specific factors to fully evaluate the effectiveness of ELF Beauty Inc's accounts receivable management. A higher DSO could signal potential issues with credit policies, collection efforts, or the financial health of customers.

Management may need to closely monitor and actively manage accounts receivable to ensure timely collection of payments and optimize cash flow. The trend of increasing DSO should be further investigated to identify any underlying causes and implement appropriate strategies to improve efficiency in accounts receivable management.