ELF Beauty Inc (ELF)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	1.75	1.48	1.65	1.57	1.29	1.58	2.17	2.32	2.07	1.89	2.06	1.66	1.61	1.75	2.31	1.97	1.52	1.57	1.90
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
Payables turnover	—	5.76	3.77	4.12	3.70	3.62	3.65	3.99	6.00	5.24	7.98	9.04	7.30	6.01	6.97	7.36	7.13	5.20	4.93	4.67
Working capital turnover	—	4.91	5.01	4.91	5.75	5.86	2.71	2.58	2.96	2.83	2.55	2.70	3.06	3.10	3.36	3.51	3.29	3.21	3.22	3.26

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

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory. ELF Beauty's inventory turnover has fluctuated over the past few years, ranging from a low of 1.29 to a high of 2.32. Overall, the trend shows an improvement, with the latest ratio standing at 2.17 as of June 30, 2023.

2. Receivables Turnover:
- This ratio indicates how effectively the company collects payment from its customers. ELF Beauty's receivables turnover has also varied, with values ranging from 6.74 to 8.83. The company's collection efficiency has been relatively stable, with the latest reported figure being 7.27 as of June 30, 2024.

3. Payables Turnover:
- Payables turnover reflects how quickly the company pays its suppliers. ELF Beauty's payables turnover has shown significant fluctuations over the years, ranging from 3.62 to 9.04. The latest reported figure is 4.12 as of June 30, 2024, indicating a moderate payment period to suppliers.

4. Working Capital Turnover:
- This ratio measures how efficiently the company utilizes its working capital to generate sales. ELF Beauty's working capital turnover has shown a steady decline from 3.51 to 2.58, before witnessing a sharp increase to 5.75 as of March 31, 2024. This spike indicates a significant improvement in working capital efficiency.

In summary, ELF Beauty Inc has shown mixed results in its activity ratios, with some ratios improving over time while others have fluctuated. It is essential for the company to continue monitoring these metrics to ensure effective management of its assets, liabilities, and overall operational efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	208.41	246.82	221.22	233.11	282.61	230.68	168.34	157.51	176.68	192.89	177.18	219.63	227.35	208.42	158.13	185.29	239.52	232.39	191.89
Days of sales outstanding (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
Number of days of payables	days	—	63.35	96.76	88.67	98.70	100.77	99.86	91.40	60.87	69.69	45.75	40.36	49.98	60.69	52.36	49.63	51.20	70.24	74.03	78.15

ELF Beauty Inc's activity ratios, which include Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into the efficiency of the company's operations and management of working capital.

1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how many days, on average, the company holds inventory before selling it.
- ELF Beauty Inc's DOH has fluctuated over the periods provided, ranging from a high of 282.61 days on December 31, 2023, to a low of 157.51 days on March 31, 2023.
- A decreasing trend in DOH indicates better inventory management efficiency, as the company is selling its inventory faster, which can improve cash flow and reduce holding costs.

2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for the company to collect payments from its customers.
- ELF Beauty Inc's DSO has varied over the time periods, with a peak of 54.18 days on December 31, 2020, and a trough of 41.32 days on September 30, 2023.
- A lower DSO suggests that the company is efficient in collecting receivables, which can improve liquidity and working capital management.

3. Number of Days of Payables:
- This ratio indicates the average number of days it takes for the company to pay its suppliers.
- ELF Beauty Inc's number of days of payables has shown fluctuations, with the highest at 100.77 days on December 31, 2023, and the lowest at 40.36 days on June 30, 2022.
- A longer period of payables may indicate that the company is effectively managing its cash flow by delaying payments to suppliers, which can support working capital.

In summary, analyzing ELF Beauty Inc's activity ratios provides valuable insights into the company's operational efficiency, inventory management, collection of receivables, and payment to suppliers. Monitoring these ratios over time can help assess the company's performance and identify areas for improvement in working capital management.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	—	30.72	88.72	73.51	56.91	50.17	44.73	37.08	31.04	26.54	22.53	8.47	7.75	7.42	9.08
Total asset turnover	—	1.03	0.98	0.94	0.91	0.80	1.03	1.02	0.97	0.89	0.83	0.81	0.79	0.77	0.75	0.70	0.65	0.62	0.62	0.62

ELF Beauty Inc's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, provide insights into the company's efficiency in utilizing its fixed assets and total assets to generate revenue.

The Fixed Asset Turnover ratio indicates how efficiently the company is using its fixed assets to generate sales. From the data provided, we can see a generally increasing trend in the Fixed Asset Turnover ratio over the years, starting from 9.08 in June 2020 and reaching a peak of 88.72 in June 2023. This indicates that ELF Beauty Inc has significantly improved its efficiency in utilizing its fixed assets to generate revenue during this period. However, there is a sharp decrease to 30.72 in September 2023, followed by missing data for the subsequent periods.

The Total Asset Turnover ratio measures how effectively the company is using its total assets to generate revenue. ELF Beauty Inc's Total Asset Turnover ratio also shows an increasing trend over the years, starting at 0.62 in June 2020 and peaking at 1.02 in June 2023. This suggests that the company has been able to generate more revenue relative to its total assets over time. However, there are fluctuations in the ratio, such as a decrease to 0.80 in December 2023.

Analyzing both ratios together, we can see that ELF Beauty Inc has been improving its efficiency in generating sales relative to both fixed assets and total assets. It is important for the company to sustain or further improve these ratios in the future to ensure continued profitability and growth. Additionally, monitoring fluctuations in these ratios can help the company identify areas for optimization and operational efficiency.