ELF Beauty Inc (ELF)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	1,129,250	595,601	494,632	487,393	453,104
Operating ROA		13.25%	11.44%	6.02%	1.93%	6.61%

March 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $149,678K ÷ $1,129,250K
= 13.25%

ELF Beauty Inc's operating return on assets (ROA) has shown an improving trend over the past five years. The operating ROA increased from 6.61% in fiscal year 2020 to 13.25% in fiscal year 2024. This indicates that the company has been able to generate a higher operating profit relative to its total assets over the years.

The significant improvement in operating ROA from 2020 to 2024 suggests that ELF Beauty Inc has become more efficient in utilizing its assets to generate operating income. This could be attributed to effective cost management, operational efficiency, and possibly strategic investments that have resulted in higher operating profitability.

Overall, the increasing trend in operating ROA for ELF Beauty Inc reflects positively on the company's operational performance and efficiency in generating profits from its asset base. It indicates that the company has been able to enhance its financial performance and create value for its shareholders by maximizing the return on its assets.