ELF Beauty Inc (ELF)

Interest coverage

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	—	152,400	67,718	27,544	6,938
Interest expense	US$ in thousands	—	11,410	3,644	2,113	3,248
Interest coverage		—	13.36	18.58	13.04	2.14

March 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —

Based on the provided data for ELF Beauty Inc's interest coverage ratio over the five-year period from March 31, 2021, to March 31, 2025, we observe the following trends:

1. In March 2021, the interest coverage ratio was 2.14, indicating that ELF Beauty Inc's earnings before interest and taxes (EBIT) were able to cover its interest expenses 2.14 times over. This suggests a moderate ability to meet interest obligations.

2. By March 2022, the interest coverage ratio improved significantly to 13.04, showing a substantial increase in the company's ability to cover its interest expenses from its operating earnings. This indicates a stronger financial position compared to the previous year.

3. In March 2023, the interest coverage ratio continued to rise to 18.58, demonstrating a further improvement in ELF Beauty Inc's ability to service its interest payments comfortably. This signifies continued financial stability and reduced financial risk associated with meeting interest obligations.

4. However, in March 2024, the interest coverage ratio decreased to 13.36, indicating a slight decline in the company's ability to cover its interest expenses compared to the previous year. Despite this decrease, the ratio remains at a relatively healthy level, suggesting ELF Beauty Inc's earnings are still sufficient to meet its interest obligations.

5. Unfortunately, there is missing data for March 31, 2025, which prevents us from analyzing the interest coverage ratio for that year. It would be advisable to obtain the complete financial information for that period to gain a comprehensive understanding of ELF Beauty Inc's financial health.

In conclusion, ELF Beauty Inc's interest coverage ratio showed a generally positive trend over the specified period, with improvements in financial strength and the company's ability to meet its interest obligations. However, closer monitoring and analysis of future financial statements are recommended to assess the company's ongoing financial performance accurately.