ELF Beauty Inc (ELF)

Working capital turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	1,016,910	576,650	389,406	314,020	276,544
Total current assets	US$ in thousands	477,077	303,325	193,029	170,144	132,360
Total current liabilities	US$ in thousands	299,115	107,976	65,017	73,331	51,123
Working capital turnover		5.71	2.95	3.04	3.24	3.40

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,016,910K ÷ ($477,077K – $299,115K)
= 5.71

The working capital turnover for ELF Beauty Inc has shown a fluctuating trend over the past five years. The ratio has increased from 3.40 in 2020 to 5.71 in 2024, demonstrating an improvement in the company's efficiency in utilizing its working capital to generate sales. This indicates that ELF Beauty Inc is generating more revenue relative to its working capital investment.

However, it is worth noting that the ratio dipped to 2.95 in 2023, which could suggest a temporary decline in efficiency in utilizing working capital to generate sales during that year. Overall, the upward trend in the working capital turnover ratio from 2020 to 2024 indicates an improvement in the company's working capital management efficiency and its ability to generate sales with the resources available.