ELF Beauty Inc (ELF)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	1,302,015	1,217,635	1,132,690	1,024,893	891,107	766,065	671,498	576,756	494,534	446,184	415,879	389,935	377,471	367,630	347,817	314,882	296,923	288,416	282,943	277,931
Total current assets	US$ in thousands	559,077	554,039	530,460	477,077	454,900	435,446	370,409	303,325	262,890	247,398	216,640	193,029	185,125	181,304	182,731	170,144	160,289	151,760	145,515	132,360
Total current liabilities	US$ in thousands	293,907	310,897	299,805	299,115	302,939	152,371	109,705	107,976	87,537	71,948	61,732	65,017	62,513	71,218	82,977	73,331	66,680	61,027	57,231	51,123
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,302,015K ÷ ($559,077K – $293,907K)
= 4.91

ELF Beauty Inc's working capital turnover ratio has shown fluctuations over the years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales. A higher turnover ratio is generally favorable as it suggests that the company is effectively managing its working capital.

From March 31, 2020, to December 31, 2021, the working capital turnover ratio remained relatively stable, ranging between 3.08 and 3.49. This indicated consistent efficiency in working capital utilization during this period.

However, from June 30, 2022, to June 30, 2024, the working capital turnover ratio decreased gradually from 2.68 to 4.91 and then back down to 4.91. This decrease may indicate that the company's ability to generate sales from its working capital slightly deteriorated and then recovered by the end of June 2024.

The significant spike in the working capital turnover ratio to 5.86 by December 31, 2023, and 5.76 by March 31, 2024, followed by a decline to 4.91 in the subsequent quarters, may suggest a sudden increase in sales relative to working capital during that period, which could be a positive sign.

Overall, ELF Beauty Inc's working capital turnover ratio has shown variability, reflecting changes in the company's efficiency in utilizing its working capital to generate sales over the years. It is important for the company to closely monitor this ratio to ensure optimal working capital management and sustainable growth.