ELF Beauty Inc (ELF)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	108,183	120,778	43,353	57,768	46,167
Short-term investments	US$ in thousands	—	—	—	2,875	—
Total current liabilities	US$ in thousands	299,115	107,976	65,017	73,331	51,123
Cash ratio		0.36	1.12	0.67	0.83	0.90

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($108,183K + $—K) ÷ $299,115K
= 0.36

The cash ratio of ELF Beauty Inc has exhibited a declining trend over the past five years. The ratio has decreased from 0.90 in Mar 31, 2020 to 0.36 in Mar 31, 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened over this period. A lower cash ratio may suggest potential liquidity concerns or inefficiencies in managing cash resources. It is important for ELF Beauty Inc to closely monitor its cash position and implement strategies to improve liquidity moving forward.