ELF Beauty Inc (ELF)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,192,474	1,113,146	1,013,122	894,584	763,468	643,612	575,256	519,001	442,122	408,023	385,464	370,337	266,889	260,156	246,267	221,884	221,910	206,971	194,555	185,325
Inventory	US$ in thousands	214,786	238,798	199,563	191,489	204,504	147,228	98,053	81,323	81,250	81,288	70,339	84,498	85,248	76,816	54,528	56,810	68,567	64,486	52,752	46,209
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,192,474K ÷ $214,786K
= 5.55

ELF Beauty Inc's inventory turnover ratio measures the number of times the company sells and replaces its inventory within a specific period. A higher inventory turnover ratio generally indicates that the company is efficiently managing its inventory levels by swiftly selling products.

Based on the data provided:
- The inventory turnover ratio fluctuated over the analyzed period, ranging from a low of 3.13 to a high of 6.38.
- The company showed an increasing trend in inventory turnover from March 31, 2020, to December 31, 2022, suggesting improved efficiency in managing inventory during that period.
- The highest inventory turnover of 6.38 was recorded on March 31, 2023, indicating that ELF Beauty Inc was selling and replenishing its inventory at a significantly higher rate at that time.
- Following the peak on March 31, 2023, the inventory turnover ratio fluctuated but generally remained above 4, signaling continued strong management of inventory turnover.

Overall, the trend in ELF Beauty Inc's inventory turnover ratio highlights the company's effectiveness in efficiently managing its inventory levels and converting inventory into sales over the analyzed period.