ELF Beauty Inc (ELF)

Debt-to-capital ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	642,572	411,017	312,429	269,646	242,171
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $642,572K)
= 0.00

The debt-to-capital ratio of ELF Beauty Inc has consistently been 0.00 over the past five years, indicating that the company has not utilized any debt in its capital structure during this period. A debt-to-capital ratio of 0.00 means that the company's total debt is nonexistent or negligible compared to its total capital, which includes both debt and equity. This low ratio suggests that ELF Beauty Inc has been primarily relying on equity financing to fund its operations and investments rather than taking on debt. It demonstrates a strong financial position with minimal financial risk related to debt obligations. However, it is important to note that a zero debt-to-capital ratio may not always be ideal as some level of debt can be beneficial for a company's growth and financial flexibility.