ELF Beauty Inc (ELF)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cost of revenue (ttm)	US$ in thousands	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	271,179	268,949	268,112
Payables	US$ in thousands	81,075	72,917	63,736	53,237	31,427	32,049	19,279	16,023	19,227	22,756	19,299	17,113	15,699	20,108	20,544	21,484	12,390	19,589	14,807	16,982
Payables turnover		11.03	10.47	10.10	10.81	16.51	13.80	21.16	24.06	19.26	11.73	13.48	14.39	14.13	11.04	10.07	9.06	14.96	13.84	18.16	15.79

March 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $894,584K ÷ $81,075K
= 11.03

The payables turnover ratio measures how quickly a company pays its suppliers. A higher payables turnover ratio indicates more efficient management of payables, as the company is paying its suppliers more quickly.

Analyzing ELF Beauty Inc's payables turnover over the past 20 quarters, we observe fluctuations in the ratio. The ratio ranged from a low of 9.06 in June 30, 2020, to a high of 24.06 in June 30, 2022. The company's payables turnover ratio has generally exhibited an upward trend since the low point in June 30, 2020, which may indicate improvements in the company's payables management efficiency.

It is important to note that a high payables turnover ratio can also suggest that the company may be aggressively managing its payables by delaying payments to suppliers. Conversely, a low payables turnover ratio may indicate a longer payment period to suppliers but could also signal strong relationships with suppliers or extended payment terms.

Overall, ELF Beauty Inc's payables turnover ratio has shown variability over the analyzed period, indicating fluctuations in the company's payables management practices. Further analysis and context regarding the company's operations, industry standards, and management decisions would provide a more comprehensive understanding of the implications of these ratios.