ELF Beauty Inc (ELF)

Operating profit margin

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Operating income	US$ in thousands	149,678	68,143	29,770	9,400	29,950
Revenue	US$ in thousands	1,016,910	576,650	389,406	314,020	276,544
Operating profit margin		14.72%	11.82%	7.64%	2.99%	10.83%

March 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $149,678K ÷ $1,016,910K
= 14.72%

The operating profit margin of ELF Beauty Inc has shown a general increasing trend over the past five years, with significant fluctuations in between. From March 31, 2020, to March 31, 2021, there was a notable decrease from 10.83% to 2.99%. However, the company managed to significantly improve its operating profit margin in the subsequent years, reaching 7.64% in March 31, 2022, further increasing to 11.82% in March 31, 2023, and finally reaching 14.72% in March 31, 2024.

This upward trend in operating profit margin indicates that ELF Beauty Inc has been able to enhance its operational efficiency and control costs over time, leading to a higher proportion of revenues translating into operating profits. The company's ability to maintain and increase its operating profit margin suggests improved profitability and overall financial health. It demonstrates management's successful efforts in managing expenses and increasing operational effectiveness, which could be contributing factors in driving the company's financial performance and potential investor confidence.