ELF Beauty Inc (ELF)

Quick 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
Cash	US$ in thousands	73,845	96,768	109,034	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
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	2,875	2,875	2,875	2,875	—	—	—
Receivables	US$ in thousands	187,744	146,559	155,701	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
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
Quick ratio		0.89	0.78	0.88	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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($73,845K + $—K + $187,744K) ÷ $293,907K
= 0.89

ELF Beauty Inc's quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown some fluctuations over the period from March 31, 2020, to December 31, 2024.

The quick ratio started at a healthy level of 1.48 on March 31, 2020, indicating that the company had $1.48 in liquid assets available to cover each $1 of current liabilities. The ratio remained relatively stable in the subsequent quarters, hovering around 1.2 to 1.4.

However, there was a notable increase in the quick ratio to 2.02 on June 30, 2022, which may suggest an improved liquidity position or a decrease in current liabilities during that period. This peak was followed by a decline in the quick ratio to 0.64 by December 31, 2023, indicating a potential liquidity strain.

The quick ratio improved slightly to 0.78 by March 31, 2024, and continued to increase to 0.89 by December 31, 2024. Despite the increase in the ratio towards the end of the period, it still remains below 1, suggesting that ELF Beauty Inc may be facing challenges in meeting its short-term obligations with its current liquid assets.

Overall, the trend in ELF Beauty Inc's quick ratio indicates some fluctuations and potential liquidity challenges that may require further analysis to understand the drivers behind these changes and the company's overall financial health.