ELF Beauty Inc (ELF)

Quick ratio

		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	US$ in thousands	148,692	73,845	96,768	109,034	108,183	75,005	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
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
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
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

March 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($148,692K + $—K + $—K) ÷ $—K
= —

The quick ratio of ELF Beauty Inc shows the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities.

From June 30, 2020, to March 31, 2022, ELF Beauty Inc maintained a relatively stable quick ratio, ranging from 1.23 to 1.37, indicating good liquidity levels. However, from June 30, 2022, the quick ratio saw a significant increase to 2.02, indicating a substantial improvement in the company's ability to meet short-term obligations.

Subsequently, the quick ratio fluctuated but generally remained above 1 until March 31, 2024. The quick ratio dropped to 0.65 by December 31, 2023, suggesting potential challenges in meeting short-term liabilities with liquid assets.

By analyzing the trend of the quick ratio, it is advisable for stakeholders to monitor the company's liquidity position closely, especially following the sharp decrease observed in late 2023. The company may need to address its liquidity position to ensure it can meet its short-term obligations efficiently.