ELF Beauty Inc (ELF)

Current ratio

		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	Mar 31, 2020
Total current assets	US$ in thousands	559,077	554,039	530,460	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
Total current liabilities	US$ in thousands	293,907	310,897	299,805	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
Current ratio		1.90	1.78	1.77	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

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $559,077K ÷ $293,907K
= 1.90

The current ratio of ELF Beauty Inc has shown fluctuations over the periods analyzed. The ratio indicates the company's ability to cover its short-term liabilities with its short-term assets.

From March 31, 2020, to December 31, 2021, the current ratio was relatively stable, ranging from 2.32 to 2.96, suggesting a healthy liquidity position. During this period, the company had a comfortable buffer to meet its current obligations.

However, starting from March 31, 2022, the current ratio began to increase significantly, reaching 3.51 by June 30, 2022. This sharp increase indicates an improvement in the company's ability to cover its short-term liabilities with its current assets.

In the subsequent periods, the current ratio remained relatively high, above 3, until September 30, 2023. However, from December 31, 2023, to the end of the data on December 31, 2024, there was a noticeable decline in the ratio. This decrease may raise concerns about the company's liquidity position and ability to meet its short-term obligations effectively.

Overall, based on the current ratio trend, ELF Beauty Inc exhibited strong liquidity in the earlier periods, but a decline in the ratio in the later periods indicates a potential strain on its ability to cover short-term liabilities with current assets. Further analysis of the company's financial statements and operating performance would be necessary to understand the reasons behind this change.