ELF Beauty Inc (ELF)

Interest coverage

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	149,678	68,143	29,770	9,400	29,950
Interest expense	US$ in thousands	440	377	394	984	926
Interest coverage		340.18	180.75	75.56	9.55	32.34

March 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $149,678K ÷ $440K
= 340.18

ELF Beauty Inc's interest coverage ratio has shown a consistently improving trend over the last five years. The ratio has significantly increased from 32.34 in 2020 to 340.18 in 2024. This indicates that the company's ability to cover its interest expenses with operating profits has strengthened over the years. The substantial increase in the interest coverage ratio reflects ELF Beauty Inc's enhanced financial health and reduced risk of default on debt obligations. Overall, the trend suggests that the company's profitability and operating performance have improved, providing a positive outlook for investors and creditors.