ELF Beauty Inc (ELF)

Current 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
Total current assets	US$ in thousands	477,077	454,900	435,446	370,409	303,325	262,890	247,398	216,640	193,029	185,125	181,304	182,731	170,144	160,289	151,760	145,515	132,360	166,258	145,125	141,184
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
Current ratio		1.59	1.50	2.86	3.38	2.81	3.00	3.44	3.51	2.97	2.96	2.55	2.20	2.32	2.40	2.49	2.54	2.59	2.71	3.12	3.07

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $477,077K ÷ $299,115K
= 1.59

The current ratio for ELF Beauty Inc has fluctuated over the past several quarters, ranging from a low of 1.50 to a high of 3.51. A current ratio above 1 indicates that the company has more current assets than current liabilities, which suggests that ELF Beauty Inc has a healthy liquidity position to meet its short-term obligations.

In recent quarters, ELF Beauty Inc's current ratio has generally remained above 2, indicating a strong ability to cover its short-term liabilities with its current assets. The significant increase in the current ratio in September 2023 and December 2022, reaching levels of 2.86 and 3.44 respectively, could indicate improved liquidity and potentially lower financial risk during those periods.

However, it is essential to note the slight decrease in the current ratio in the most recent quarter, dropping to 1.59. This decrease may warrant further investigation to understand the reasons behind the decline and to assess whether it represents a concerning trend or a temporary fluctuation.

Overall, while ELF Beauty Inc has shown strong liquidity levels historically, stakeholders should continue monitoring the current ratio to ensure that the company maintains a healthy balance between its current assets and liabilities.