ELF Beauty Inc (ELF)

Quick 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
Cash	US$ in thousands	108,183	72,705	167,763	142,549	120,778	87,021	85,317	72,248	43,353	32,889	41,694	63,402	57,768	35,439	41,041	54,224	46,167	74,740	58,747	60,746
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	2,875	2,875	2,875	2,875	—	—	—	—	—	—
Receivables	US$ in thousands	123,797	121,061	86,683	90,531	67,928	66,237	53,912	52,281	45,567	47,180	44,374	43,127	40,185	44,555	33,844	29,825	29,721	35,082	27,715	22,623
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
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

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 shown some fluctuations over the past several quarters, ranging from a low of 0.64 to a high of 2.12. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company is able to cover its short-term liabilities with its current assets that can be quickly converted into cash.

In general, a quick ratio above 1 is considered healthy as it signifies that the company has an adequate level of liquid assets to cover its short-term obligations. ELF Beauty Inc's quick ratio has mostly been above 1, indicating a strong liquidity position. However, the fluctuations in the quick ratio over the quarters suggest some variability in the company's ability to quickly cover its short-term liabilities.

It is important for investors and analysts to monitor the quick ratio over time to assess the company's liquidity position and its ability to manage short-term financial obligations effectively. Overall, ELF Beauty Inc's quick ratio demonstrates a generally healthy liquidity position, although attention should be paid to the fluctuations to understand the factors impacting the company's ability to meet its short-term obligations.