ELF Beauty Inc (ELF)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	—	233.11	157.51	219.63	185.29
Days of sales outstanding (DSO)	days	—	44.13	42.83	42.41	46.11
Number of days of payables	days	—	98.70	60.87	49.98	51.20
Cash conversion cycle	days	0.00	178.54	139.48	212.07	180.19

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle of ELF Beauty Inc has fluctuated over the years, indicating varying efficiencies in cash management and working capital cycles.

As of March 31, 2021, the cash conversion cycle was 180.19 days, which increased to 212.07 days by March 31, 2022. This rise suggests a longer time taken to convert investments in inventory into cash receipts from sales.

By March 31, 2023, the cash conversion cycle decreased significantly to 139.48 days, reflecting potentially improved inventory turnover and quicker collection of receivables. However, this improvement was followed by a slight increase to 178.54 days by March 31, 2024.

Remarkably, by March 31, 2025, the cash conversion cycle dropped to 0.00 days, signaling that ELF Beauty Inc effectively managed its working capital, possibly achieving a balance between inventory, accounts receivable, and accounts payable turnover.

Overall, monitoring the cash conversion cycle can provide insights into how efficiently the company manages its cash flow and working capital processes, impacting liquidity and operational efficiency.