ELF Beauty Inc (ELF)

Cash ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cash and cash equivalents	US$ in thousands	—	108,183	120,778	43,353	57,768
Short-term investments	US$ in thousands	—	—	—	—	2,875
Total current liabilities	US$ in thousands	—	299,115	107,976	65,017	73,331
Cash ratio		—	0.36	1.12	0.67	0.83

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($—K + $—K) ÷ $—K
= —

The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents.

Looking at ELF Beauty Inc's cash ratio over the past few years, we see a fluctuating pattern. In March 2021, the cash ratio was 0.83, indicating that the company had $0.83 in cash and cash equivalents for every $1 of current liabilities. By March 2022, this ratio had decreased to 0.67, suggesting a slight decrease in the company's liquidity position.

In March 2023, the cash ratio improved significantly to 1.12, indicating that the company had more than enough cash to cover its short-term liabilities. However, this positive trend did not continue, as the cash ratio dropped to 0.36 by March 2024, signaling a potential liquidity concern.

The absence of a reported cash ratio for March 31, 2025, makes it challenging to provide a complete analysis for that period. However, based on the available data, ELF Beauty Inc's cash ratio has shown variability over the years, with fluctuations that may warrant further investigation into the company's cash management and liquidity position.