ELF Beauty Inc (ELF)

Cash conversion cycle

		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
Cash conversion cycle	days	0.00	197.69	193.99	182.75	178.54	231.48	172.14	126.07	139.48	155.67	191.05	182.51	212.07	212.02	199.82	153.39	180.19	223.46	200.61	151.59

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 periods analyzed. The trend shows that the company's cash conversion cycle decreased from around 200 days in December 2020 to approximately 126 days in June 2023, indicating an improvement in managing its working capital.

However, the cash conversion cycle then increased to around 231 days by December 2023 before decreasing again. Over the long term, ELF Beauty Inc seems to be able to manage its operating cycle efficiently, as evidenced by the reduction in the cash conversion cycle over time.

It is crucial for investors and stakeholders to monitor the cash conversion cycle, as it reflects how efficiently a company is managing its cash flows, inventory, and receivables. A decreasing trend in the cash conversion cycle suggests that the company is speeding up the conversion of its investments in inventory and other resources into cash, which is a positive sign for financial health and operational efficiency.