ELF Beauty Inc (ELF)

Financial leverage ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total assets	US$ in thousands	1,129,250	595,601	494,632	487,393	453,104
Total stockholders’ equity	US$ in thousands	642,572	411,017	312,429	269,646	242,171
Financial leverage ratio		1.76	1.45	1.58	1.81	1.87

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,129,250K ÷ $642,572K
= 1.76

The financial leverage ratio of ELF Beauty Inc has fluctuated over the past five years, ranging from 1.45 in 2023 to 1.87 in 2020. The ratio measures the extent to which the company relies on debt financing versus equity financing. A higher financial leverage ratio indicates higher dependence on debt to finance operations and growth.

In 2024, the financial leverage ratio of ELF Beauty Inc increased to 1.76 from the previous year, indicating a higher level of debt in the company's capital structure compared to equity. This could suggest that the company has taken on additional debt to fund its operations, investments, or acquisitions.

It is important for investors and stakeholders to monitor changes in the financial leverage ratio, as high levels of debt can increase financial risk and interest expenses for the company. Conversely, a lower ratio may signal a more conservative capital structure with less reliance on debt financing.

Overall, ELF Beauty Inc's financial leverage ratio has shown variability over the years, reflecting changes in the company's financing strategy and capital structure. Investors should consider this ratio along with other financial metrics to assess the company's overall financial health and risk profile.