ELF Beauty Inc (ELF)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	130,741	127,492	139,753	149,678	140,693	132,148	107,346	68,143	62,284	47,964	40,029	29,770	25,716	23,036	17,562	9,400	12,308	18,897	26,031	29,950
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	767,387	727,695	703,590	642,572	614,224	516,428	471,702	411,017	385,304	356,960	333,449	312,429	305,468	294,093	282,622	269,646	264,602	254,653	248,708	242,171
Return on total capital		17.04%	17.52%	19.86%	23.29%	22.91%	25.59%	22.76%	16.58%	16.16%	13.44%	12.00%	9.53%	8.42%	7.83%	6.21%	3.49%	4.65%	7.42%	10.47%	12.37%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $130,741K ÷ ($—K + $767,387K)
= 17.04%

Over the past five years, ELF Beauty Inc's return on total capital has fluctuated. In March 2020, the return on total capital was 12.37%, showing a healthy performance. However, by December 2020, this ratio had decreased to 4.65%, indicating a decline in the company's ability to generate returns from its total capital.

The trend continued into the first half of 2021, with the return on total capital hovering around 3-6%. However, from September 2021 onwards, there was a notable improvement in the company's performance, with the return on total capital increasing steadily. By December 2022, the return on total capital had reached 16.16%, marking a significant recovery.

The positive momentum continued into 2023, with the return on total capital continuing to rise, peaking at 25.59% in September 2023. This indicated that ELF Beauty Inc was effectively utilizing its total capital to generate returns for its stakeholders. However, there was a slight dip in the fourth quarter of 2023, with the return on total capital dropping to 22.91%.

In the following year, the return on total capital remained relatively stable, ranging between 17-23%. As of December 2024, ELF Beauty Inc's return on total capital stood at 17.04%, demonstrating a moderate level of financial performance and capital efficiency. Overall, the company has shown improvements in its ability to generate returns from its total capital over the years, with some fluctuations in between.