ELF Beauty Inc (ELF)

Interest coverage

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	78,626	98,196	132,597	144,858	154,783	145,204	134,648	109,846	70,643	62,026	47,006	38,425	27,544	23,406	20,195	14,508	6,938	10,683	17,614	26,193
Interest expense (ttm)	US$ in thousands	3,527	11,916	12,374	12,997	13,338	6,681	3,159	3,322	3,644	2,113	2,220	2,031	2,113	1,932	2,217	2,525	3,248	4,732	5,437	6,175
Interest coverage		22.29	8.24	10.72	11.15	11.60	21.73	42.62	33.07	19.39	29.35	21.17	18.92	13.04	12.11	9.11	5.75	2.14	2.26	3.24	4.24

March 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $78,626K ÷ $3,527K
= 22.29

The interest coverage ratio of ELF Beauty Inc has exhibited significant fluctuations over the periods analyzed. The ratio started at 4.24 as of June 30, 2020, declined to 2.14 by March 31, 2021, and then showed a steady increase, reaching a peak of 42.62 as of September 30, 2023. Thereafter, the ratio decreased to 8.24 by December 31, 2024.

The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher ratio indicates a stronger ability to meet interest obligations.

ELF Beauty Inc's interest coverage ratio has fluctuated widely, suggesting varying levels of financial risk and stability over the periods examined. Investors and creditors should closely monitor this ratio to assess the company's financial health and ability to service its debts.