ELF Beauty Inc (ELF)

Days of sales outstanding (DSO)

		Mar 31, 2025	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
Receivables turnover		—	6.94	8.31	7.27	8.27	7.35	8.83	7.43	8.52	7.50	8.31	7.99	8.61	8.05	8.34	8.13	7.92	6.74	8.64	9.64
DSO	days	—	52.63	43.93	50.20	44.13	49.64	41.32	49.13	42.83	48.68	43.90	45.68	42.41	45.35	43.76	44.89	46.11	54.18	42.25	37.85

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

The days of sales outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect revenue after a sale has been made. It is calculated by dividing accounts receivable by average daily sales.

Based on the data provided for ELF Beauty Inc, we observe fluctuations in the DSO over the period from June 30, 2020, to March 31, 2025. The DSO values range from a low of 37.85 days on June 30, 2020, to a high of 52.63 days on December 31, 2024.

A lower DSO suggests that the company is collecting revenue more quickly, which can indicate efficient credit management and a healthy cash flow cycle. Conversely, a higher DSO may signal potential issues with collections, credit policies, or customer payment behavior.

Analyzing the trend of DSO over time can provide insights into the company's effectiveness in managing accounts receivable. For ELF Beauty Inc, we notice some fluctuations in DSO values, but there seems to be a general trend of keeping the DSO within a certain range, with periodic increases or decreases.

It would be beneficial for ELF Beauty Inc to monitor and analyze the factors leading to variations in DSO, identify any potential issues in accounts receivable management, and implement strategies to optimize cash flow and collection processes. Regularly reviewing and managing DSO can help improve financial performance and strengthen the company's overall working capital management.