ELF Beauty Inc (ELF)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Days of inventory on hand (DOH)	days	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	65.12	69.01	69.46
Days of sales outstanding (DSO)	days	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	47.87	37.90	25.27
Number of days of payables	days	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	26.37	20.10	23.12
Cash conversion cycle	days	89.14	112.50	88.65	77.64	78.08	89.51	99.57	97.32	106.98	131.09	124.75	100.71	114.21	134.48	120.32	97.14	105.64	86.62	86.82	71.61

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 78.13 + 44.09 – 33.08
= 89.14

The cash conversion cycle of ELF Beauty Inc has shown fluctuations over the past two years. The cycle measures the time it takes for the company to convert its resources into cash flow, providing insights into its efficiency in managing working capital.

In the most recent quarter, ending March 31, 2024, ELF Beauty Inc's cash conversion cycle stood at 89.14 days, showing an improvement compared to the previous quarter's figure of 112.50 days by reducing the time taken to convert inventory and receivables into cash. This may suggest better inventory management or more efficient collections from customers.

Looking back over the past eight quarters, we observe variations in the cash conversion cycle, with some periods showing longer cycles and others demonstrating shorter cycles. The company has experienced peaks and troughs in the efficiency of its working capital management during this time frame.

Overall, monitoring the cash conversion cycle can help investors and stakeholders understand how effectively ELF Beauty Inc is managing its liquidity and working capital. By analyzing trends in this metric, stakeholders can assess the company's operational efficiency and potential financial health.