ELF Beauty Inc (ELF)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Total assets	US$ in thousands	1,129,250	1,108,280	746,936	657,881	595,601	555,925	542,141	513,857	494,632	490,950	493,012	498,392	487,393	480,905	473,424	462,068	453,104	456,251	437,027	435,981
Total stockholders’ equity	US$ in thousands	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	242,447	231,688	222,008
Financial leverage ratio		1.76	1.80	1.45	1.39	1.45	1.44	1.52	1.54	1.58	1.61	1.68	1.76	1.81	1.82	1.86	1.86	1.87	1.88	1.89	1.96

March 31, 2024 calculation

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

ELF Beauty Inc's financial leverage ratio has fluctuated over the past few quarters, ranging from 1.39 to 1.80. The ratio measures the company's level of debt relative to its equity, indicating the extent to which the company is using debt financing.

A higher financial leverage ratio suggests that the company relies more on debt to finance its operations and investments, which can potentially amplify returns but also increase financial risk. Conversely, a lower ratio indicates a lower level of debt relative to equity, signaling a more conservative financing structure.

In the case of ELF Beauty Inc, the trend of the financial leverage ratio increasing from 1.39 in June 2023 to 1.80 in December 2023 might indicate a shift towards more aggressive debt financing or a decrease in equity. Further analysis of the company's financial statements and business operations would be necessary to fully understand the implications of these changes in the financial leverage ratio.