ELF Beauty Inc (ELF)

Number of days of payables

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Payables turnover		11.01	16.39	19.26	20.22	20.92
Number of days of payables	days	33.14	22.27	18.95	18.05	17.45

March 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.01
= 33.14

ELF Beauty Inc has demonstrated an increasing trend in the number of days of payables over the past five years, as seen from the data provided. The number of days of payables increased from 17.45 days as of March 31, 2020, to 33.14 days as of March 31, 2024. This indicates that the company is taking longer to pay its suppliers over time.

A higher number of days of payables may suggest that ELF Beauty Inc is taking longer to settle its outstanding invoices with suppliers, potentially indicating a stretched working capital cycle. This may be a strategic move to better manage cash flow or negotiate more favorable payment terms. However, it may also signal liquidity issues if the increase is due to financial constraints.

It is essential for investors and stakeholders to monitor the trend in the number of days of payables to assess the efficiency of ELF Beauty Inc's working capital management and its relationships with suppliers. Additionally, comparing this metric with industry benchmarks can provide further insights into the company's operational performance and financial health.