ELF Beauty Inc (ELF)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.76 | 1.45 | 1.58 | 1.81 | 1.87 |
ELF Beauty Inc has consistently maintained a strong solvency position, as indicated by its debt-related ratios. The company has consistently maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 over the past five years, signifying that the company has minimal reliance on debt to finance its operations and investment activities. This indicates a conservative capital structure and lower financial risk.
The financial leverage ratio, which measures the extent to which the company has utilized debt financing compared to equity, has shown some variation over the past five years. The ratio increased from 1.87 in 2020 to 1.76 in 2024, indicating a decline in leverage. However, despite this increase, the financial leverage ratios have remained below 2, suggesting that ELF Beauty Inc has maintained a relatively low level of leverage and has not heavily relied on debt to fund its operations.
Overall, the solvency ratios suggest that ELF Beauty Inc has prioritized financial stability and has effectively managed its debt levels to ensure a strong financial position. Investors and stakeholders may view the company positively for its conservative approach to debt management, which reduces the risk of financial distress and enhances the company's ability to weather economic downturns.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 340.18 | 180.75 | 75.56 | 9.55 | 32.34 |
The interest coverage ratio of ELF Beauty Inc has shown a strong upward trend over the past five years. In the most recent fiscal year ending on March 31, 2024, the company's interest coverage ratio stood at 340.18, indicating a significant improvement from 180.75 in the previous year and substantial growth compared to the ratios of 75.56, 9.55, and 32.34 in the preceding years.
This surge in the interest coverage ratio suggests that ELF Beauty Inc has been generating significantly more operating income relative to its interest expenses over the years, signaling improved financial health and a greater ability to service its debt obligations. The substantial increase in the ratio reflects the company's enhanced capacity to cover its interest payments, which is a positive indicator of its financial stability and creditworthiness.