ELF Beauty Inc (ELF)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	108,183	72,705	167,763	142,549	120,778	87,021	85,317	72,248	43,353	32,889	41,694	63,402	57,768	35,439	41,041	54,224	46,167	74,740	58,747	60,746
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	2,875	2,875	2,875	2,875	—	—	—	—	—	—
Total current liabilities	US$ in thousands	299,115	302,939	152,371	109,705	107,976	87,537	71,948	61,732	65,017	62,513	71,218	82,977	73,331	66,680	61,027	57,231	51,123	61,295	46,541	45,976
Cash ratio		0.36	0.24	1.10	1.30	1.12	0.99	1.19	1.17	0.67	0.53	0.63	0.80	0.83	0.57	0.67	0.95	0.90	1.22	1.26	1.32

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 shows fluctuations over the past few quarters, ranging from 0.24 to 1.32. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents alone. A higher cash ratio indicates a stronger ability to cover short-term obligations.

ELF Beauty Inc's cash ratio has generally been above 1.0, indicating a healthy liquidity position, particularly in the quarters ended Sep 30, 2023, Jun 30, 2023, and Jun 30, 2019. During these periods, the company had more than enough cash to cover its short-term liabilities.

However, there are quarters where the cash ratio falls below 1.0, signaling a potential risk in meeting short-term obligations solely with cash. For instance, in the quarters ended Mar 31, 2024, Dec 31, 2023, and Mar 31, 2022, the cash ratio was below 1.0. This may suggest a need for ELF Beauty Inc to either improve its cash position or manage its short-term liabilities more effectively in these periods.

Overall, while the company has displayed strong liquidity with a cash ratio above 1.0 in several quarters, monitoring the trend of the cash ratio can provide insights into ELF Beauty Inc's liquidity management and financial health.