ELF Beauty Inc (ELF)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	149,678	140,693	132,148	107,346	68,143	62,284	47,964	40,029	29,770	25,716	23,036	17,562	9,400	12,308	18,897	26,031	29,950	9,901	10,042	7,253
Interest expense (ttm)	US$ in thousands	440	362	366	371	377	367	373	380	394	189	209	230	244	286	297	307	317	378	2,297	4,152
Interest coverage		340.18	388.65	361.06	289.34	180.75	169.71	128.59	105.34	75.56	136.06	110.22	76.36	38.52	43.03	63.63	84.79	94.48	26.19	4.37	1.75

March 31, 2024 calculation

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

The interest coverage ratio for ELF Beauty Inc over the past several quarters shows a fluctuating trend. The ratio has generally been strong, with values well above 1, indicating that the company's operating profits have been sufficient to cover its interest expenses.

In the most recent quarter, as of March 31, 2024, ELF Beauty Inc's interest coverage ratio was 340.18, which is a very strong indicator of the company's ability to meet its interest obligations. This figure has shown an increasing trend in recent quarters, reaching its highest point in the analysis period.

Overall, ELF Beauty Inc's interest coverage ratio demonstrates a healthy financial position, reflecting the company's ability to generate earnings to cover its interest expenses. The consistent trend of high interest coverage ratios suggests that the company has been effectively managing its debt and interest burden. However, it is important to monitor future quarters to ensure this trend continues and that the company maintains its ability to comfortably meet its interest payments.