ELF Beauty Inc (ELF)

Gross profit margin

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Gross profit	US$ in thousands	724,096	390,396	251,732	206,198	181,123
Revenue	US$ in thousands	1,016,910	576,650	389,406	314,020	276,544
Gross profit margin		71.21%	67.70%	64.65%	65.66%	65.50%

March 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $724,096K ÷ $1,016,910K
= 71.21%

The gross profit margin of ELF Beauty Inc has shown a generally upward trend over the past five years, indicating an improvement in the company's ability to generate profits from its sales revenue while controlling direct costs. The margin increased from 65.50% in the fiscal year ending March 31, 2020, to 71.21% in the fiscal year ending March 31, 2024.

This improvement suggests that ELF Beauty Inc has been able to effectively manage its cost of goods sold and enhance its pricing strategies to increase profitability. A higher gross profit margin indicates the company is retaining a larger portion of each dollar of sales revenue as gross profit after accounting for the direct costs associated with producing goods or services.

Overall, the increasing trend in gross profit margin reflects positively on ELF Beauty Inc's operational efficiency and profitability, demonstrating its ability to generate higher returns from its core business activities.