ELF Beauty Inc (ELF)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	6.94	8.31	7.27	8.28	7.36	8.84	7.42	8.49	7.47	8.28	7.95	8.56	8.00	8.28	8.06	7.84	6.66	8.52	9.49	9.35
Payables turnover	18.26	11.89	12.67	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
Working capital turnover	4.91	5.01	4.91	5.76	5.86	2.71	2.58	2.95	2.82	2.54	2.68	3.05	3.08	3.34	3.49	3.25	3.17	3.18	3.20	3.42

Based on the provided data, let's analyze ELF Beauty Inc's activity ratios:

1. Inventory Turnover:
- ELF Beauty Inc's inventory turnover has generally been increasing over the years, reaching a peak of 6.38 in March 2023. This indicates that the company is selling its inventory at a faster rate.
- A higher inventory turnover ratio suggests efficient inventory management and a lower risk of obsolete inventory.

2. Receivables Turnover:
- The receivables turnover for ELF Beauty Inc has shown some fluctuations but has remained relatively stable over the years, hovering around the range of 7 to 9 times.
- A consistent receivables turnover ratio implies that the company is effectively converting credit sales into cash.

3. Payables Turnover:
- The payables turnover ratio for ELF Beauty Inc has been quite volatile, with significant fluctuations observed over the years. It peaked at 24.06 in June 2022.
- A high payables turnover ratio could indicate that the company is paying its suppliers quickly or negotiating favorable credit terms.

4. Working Capital Turnover:
- ELF Beauty Inc's working capital turnover has fluctuated over the years, with a notable increase in December 2023 and March 2024.
- A higher working capital turnover ratio signifies that the company is efficiently utilizing its working capital to generate sales.

In summary, ELF Beauty Inc has shown improvements in its inventory turnover and working capital turnover ratios, indicating better efficiency in managing its inventory and working capital. The stable receivables turnover ratio suggests consistent collection of receivables, while the volatile payables turnover ratio may require closer monitoring of the company's payment practices.

Average number of days

		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
Days of inventory on hand (DOH)	days	65.74	78.30	71.90	78.13	97.77	83.49	62.21	57.19	67.08	72.72	66.60	83.28	116.59	107.77	80.82	93.45	112.78	113.72	98.97	91.01
Days of sales outstanding (DSO)	days	52.63	43.93	50.17	44.09	49.59	41.30	49.21	42.99	48.89	44.10	45.88	42.65	45.62	44.06	45.26	46.58	54.77	42.83	38.47	39.03
Number of days of payables	days	19.99	30.70	28.82	33.08	34.86	36.15	33.78	22.10	26.46	17.25	15.17	18.95	31.12	27.08	25.36	25.82	33.07	36.23	40.31	24.40

ELF Beauty Inc's activity ratios provide insight into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH):
- ELF Beauty Inc's DOH has shown fluctuations over the years, ranging from a high of 116.59 days to a low of 57.19 days. A decreasing trend in DOH indicates the company is selling inventory faster, which can lead to lower storage costs and less risk of obsolete inventory.

2. Days of Sales Outstanding (DSO):
- The DSO for ELF Beauty Inc has varied between 38.47 days and 52.63 days. Lower DSO values suggest the company is efficient in collecting payments from customers, improving cash flow and reducing the risk of bad debts.

3. Number of Days of Payables:
- The number of days of payables has ranged from 15.17 days to 40.31 days. A lower number of days of payables means ELF Beauty Inc is paying off its suppliers more quickly, which could potentially strain cash flow but may indicate good relationships with suppliers.

Overall, ELF Beauty Inc should strive to maintain a balance between managing inventory efficiently, collecting receivables promptly, and managing payables effectively to optimize its working capital management and improve overall financial performance.

Long-term

	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
Fixed asset turnover	65.50	78.24	80.68	73.34	69.59	100.48	88.58	73.25	56.67	49.94	44.53	36.87	30.86	26.36	22.35	22.87	17.68	17.73	17.52	16.19
Total asset turnover	1.03	0.98	0.94	0.91	0.80	1.03	1.02	0.97	0.89	0.82	0.81	0.79	0.77	0.75	0.70	0.65	0.62	0.61	0.61	0.61

ELF Beauty Inc's long-term activity ratios reflect its effectiveness in managing its fixed assets and total assets to generate sales.

1. Fixed Asset Turnover: This ratio measures how efficiently the company generates sales from its investment in fixed assets. ELF Beauty Inc's fixed asset turnover has shown a consistent upward trend over the years, indicating that the company is becoming more efficient in utilizing its fixed assets to generate revenue. The ratio has increased from 16.19 in March 2020 to 65.50 in December 2024, peaking at 100.48 in September 2023. This indicates that ELF Beauty Inc has been able to generate significantly higher sales for every dollar invested in fixed assets.

2. Total Asset Turnover: This ratio assesses the company's ability to generate sales from its total assets. ELF Beauty Inc's total asset turnover has also been on an increasing trend, indicating that the company is utilizing its total assets more efficiently to generate revenue. The ratio has increased from 0.61 in March 2020 to 1.03 in December 2024, with fluctuations observed in the interim periods. This suggests that ELF Beauty Inc has improved its efficiency in generating sales relative to its total asset base.

Overall, the improving trends in both fixed asset turnover and total asset turnover ratios suggest that ELF Beauty Inc is effectively managing its assets to drive sales growth and improve overall operational efficiency.