ELF Beauty Inc (ELF)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.78 | 0.64 | 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 | 1.48 | 1.79 | 1.86 | 1.81 |
| 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 |
ELF Beauty Inc's liquidity ratios show varying levels of liquidity over the past few quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has fluctuated between 1.50 and 3.51 over the last two years, with an average of approximately 2.70. This indicates that the company generally has adequate current assets to meet its short-term obligations.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has ranged from 0.64 to 2.12 during the same period, averaging around 1.50. This ratio suggests that the company may sometimes face challenges in meeting its immediate liabilities without relying on inventory.
The cash ratio, which only considers cash and cash equivalents as a measure of liquidity, has varied between 0.24 and 1.32 over the past two years, averaging around 0.90. This indicates the company may have limited cash reserves to cover its short-term obligations, although it appears to have improved slightly in recent quarters.
Overall, ELF Beauty Inc's liquidity position seems to be somewhat stable, with the current ratio generally staying above 2.0, while the quick ratio and cash ratio show more variability. It may be beneficial for the company to focus on maintaining a healthy level of liquid assets to ensure smooth operations and financial stability.
See also:
ELF Beauty Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | 89.14 | 112.50 | 88.65 | 77.64 | 78.08 | 89.51 | 99.57 | 97.32 | 106.98 | 131.09 | 124.75 | 100.71 | 114.21 | 134.48 | 120.32 | 97.14 | 105.64 | 86.62 | 86.82 | 71.61 |
The cash conversion cycle of ELF Beauty Inc has experienced fluctuations over the past few quarters. The company's cash conversion cycle measures the time it takes for the company to convert its resources and investments into cash flows.
In the most recent quarter, ending March 31, 2024, the cash conversion cycle was 89.14 days, which indicates that on average, it takes ELF Beauty Inc approximately 89 days to convert its investments in inventory and accounts receivable into cash sales. This implies that the company is efficiently managing its working capital.
Comparing this to the previous quarters, we can observe a trend of decrease from the peak of 131.09 days in December 31, 2021. This reduction in the cash conversion cycle suggests that the company has been able to streamline its operations and improve its efficiency in converting investments into cash.
Overall, the trend in the cash conversion cycle for ELF Beauty Inc shows fluctuations, but recent improvements indicate effective management of working capital and operational efficiency in converting investments into cash flow. However, monitoring this metric in the future will be crucial to ensure continued operational efficiency and financial health.