ELF Beauty Inc (ELF)

Quick ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash	US$ in thousands	108,183	120,778	43,353	57,768	46,167
Short-term investments	US$ in thousands	—	—	—	2,875	—
Receivables	US$ in thousands	123,797	67,928	45,567	40,185	29,721
Total current liabilities	US$ in thousands	299,115	107,976	65,017	73,331	51,123
Quick ratio		0.78	1.75	1.37	1.37	1.48

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($108,183K + $—K + $123,797K) ÷ $299,115K
= 0.78

The quick ratio of ELF Beauty Inc has exhibited a fluctuating trend over the past five years, ranging from 0.78 to 1.75. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current quick assets.

In 2024, ELF Beauty Inc's quick ratio decreased to 0.78 from 1.75 in 2023, reflecting a potential decline in the company's ability to cover its short-term liabilities with its liquid assets. This could indicate a strain on the company's liquidity position or an increase in short-term obligations relative to its quick assets.

It is important for investors and stakeholders to closely monitor ELF Beauty Inc's quick ratio and assess the underlying reasons for any significant changes to understand the company's liquidity and financial health.