ELF Beauty Inc (ELF)

Liquidity ratios

Mar 31, 2025 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
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
Quick ratio — 0.89 0.78 0.88 0.78 0.65 1.67 2.12 1.75 1.75 1.94 2.02 1.37 1.28 1.25 1.32 1.37 1.24 1.23 1.47
Cash ratio — 0.25 0.31 0.36 0.36 0.25 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

Based on the provided data for ELF Beauty Inc's liquidity ratios, let's analyze the trends:

1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term obligations with its current assets.
- The current ratio for ELF Beauty Inc has been fluctuating over the quarters, starting at 2.54 in June 2020 and peaking at 3.51 in June 2022. However, it decreased to 1.50 by December 31, 2023, before slightly recovering to 1.77 by June 30, 2024.
- Despite the fluctuations, the current ratio generally stayed above 1 throughout the periods, indicating that ELF Beauty Inc had sufficient current assets to cover its short-term liabilities.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets.
- The quick ratio for ELF Beauty Inc also showed fluctuations over time, ranging from 0.65 on December 31, 2023, to a high of 2.12 on June 30, 2023.
- The quick ratio generally remained above 1 for most periods, except for some quarters in 2023 and 2024, indicating that the company had an acceptable level of liquid assets to cover its short-term liabilities without relying on inventory.

3. Cash Ratio:
- The cash ratio is the most conservative liquidity ratio, focusing solely on the company's ability to cover its current liabilities with its cash and cash equivalents.
- ELF Beauty Inc's cash ratio varied over the quarters, with a low of 0.25 on December 31, 2023, and a high of 1.30 on June 30, 2023.
- The company maintained a cash ratio above 1 for several periods, indicating a strong ability to meet its short-term obligations with cash on hand.

In conclusion, ELF Beauty Inc generally displayed a healthy liquidity position during the analyzed periods, as indicated by its current, quick, and cash ratios being above industry benchmarks. However, it is important to monitor the fluctuations in these ratios to ensure the company's ongoing ability to meet its short-term financial obligations effectively.

See also:

ELF Beauty Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

Mar 31, 2025 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
Cash conversion cycle days 0.00 197.69 193.99 182.75 178.54 231.48 172.14 126.07 139.48 155.67 191.05 182.51 212.07 212.02 199.82 153.39 180.19 223.46 200.61 151.59

The cash conversion cycle of ELF Beauty Inc has fluctuated over the period examined. It started at 151.59 days on June 30, 2020, increased to 223.46 days by December 31, 2020, then decreased to 153.39 days by June 30, 2021. There was another increase to 212.07 days by March 31, 2022, followed by a decrease to 126.07 days by June 30, 2023. This downward trend continued until March 31, 2025, when the cash conversion cycle reached 0.00 days, indicating that the company was able to convert its resources into cash effectively at that time. Overall, the company seemed to be managing its cash conversion cycle efficiently, with fluctuations likely influenced by the company's operating cycle and management strategies.