e.l.f. Beauty, Inc. (NYSE:ELF)

The analysis of the annual financial data reveals a consistent upward trend in both current assets and adjusted current assets over the five-year period observed.

Current Assets

The value of current assets shows a steady increase each year, beginning at 132,360 thousand US dollars as of March 31, 2020, and rising to 477,077 thousand US dollars by March 31, 2024. This represents a significant growth amounting to over a 260% increase across the period.

Adjusted Current Assets

Similarly, adjusted current assets exhibit a nearly identical upward trend, starting from 133,360 thousand US dollars in 2020 and increasing to 478,277 thousand US dollars in 2024. The marginally higher values compared to current assets indicate slight adjustments made, maintaining a consistent growth pattern that mirrors the unadjusted figures.

Overall, the financial position regarding liquid assets shows considerable strengthening, suggesting enhanced liquidity and possibly increased operational scale or improved asset management over these years. The parallel movement of both current and adjusted assets indicates stability in accounting adjustments and reliable asset valuation trends.

The data reveals a consistent and marked increase in both total assets and adjusted total assets over the five-year period ending March 31, 2024. Beginning with total assets of approximately $453 million in 2020, there is a steady growth each year, reaching about $1.13 billion by 2024. This represents a significant expansion of total assets, more than doubling within the timeframe.

The adjusted total assets follow a nearly identical trend to total assets, starting slightly above the total assets figure in 2020 and growing in parallel, reaching approximately $1.13 billion in 2024. The minimal differences between total assets and adjusted total assets suggest that adjustments made for reporting or analytic purposes did not significantly alter the overall asset valuation.

Trend Analysis

The growth trajectory is particularly notable between 2023 and 2024, where total assets almost doubled, increasing from around $596 million to nearly $1.13 billion. This abrupt rise may indicate strategic acquisitions, investments, or enhancements in asset valuation.

From 2020 through 2023, the increase in assets is more gradual but steady, suggesting consistent business expansion or asset accumulation over these years.

Asset Management Insights

The close alignment between total assets and adjusted total assets indicates stable and reliable financial reporting metrics, with adjustments having minimal impact on the overall asset picture.

This stability aids in maintaining confidence in the asset base and provides a consistent foundation for further financial analysis or decision-making.

Implications

The doubling of asset base over the span of five years underscores aggressive growth or scaling operations, potentially supported by increased capital investment or robust operational performance.

It may also reflect changes in accounting policies or significant revaluation of existing assets, which should be considered when assessing future financial health and operational capabilities.

Total liabilities

The total liabilities exhibited a relatively stable pattern between March 31, 2020, and March 31, 2023, with values fluctuating slightly but generally remaining around the 180,000 to 220,000 range in thousands of US dollars. However, there is a notable and significant increase in total liabilities as of March 31, 2024, where the figure surged to 486,675 thousand US dollars. This sharp rise represents a substantial jump compared to prior years, indicating a significant change in the company’s financial obligations during this period.

Adjusted total liabilities

The adjusted total liabilities follow a similar trend to total liabilities over the analyzed periods. From 2020 to 2023, adjusted liabilities fluctuated moderately within the range of approximately 170,000 to 205,000 thousand US dollars, showing slight decreases and increases but no dramatic shifts. Like total liabilities, there is a pronounced increase in adjusted total liabilities by March 31, 2024, rising sharply to 483,009 thousand US dollars. This correspondence in trend suggests that the adjustment factors applied do not significantly alter the overall picture of the company's liabilities, but both measures underscore the considerable growth in liabilities in the most recent year.

The financial data over the five-year period reveals a consistent upward trend in both stockholders’ equity and adjusted stockholders’ equity. This suggests that the company has been steadily increasing its net assets and retained earnings or additional paid-in capital, which may reflect improved profitability, capital accumulation, or both.

Stockholders’ Equity

Stockholders’ equity grew from $242,171 thousand as of March 31, 2020, to $642,572 thousand by March 31, 2024. This represents a growth of approximately 165.5% over the five-year span, indicating a significant strengthening of the company’s capital base.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity, which likely accounts for certain adjustments such as unrealized gains/losses or other comprehensive income elements, also demonstrated a steady increase. It rose from $265,048 thousand in March 2020 to $645,617 thousand in March 2024, showing an overall increase similar to the reported stockholders’ equity, reinforcing the trend of growing net value.

Comparative Insights

The adjusted stockholders’ equity values consistently remain slightly higher than the reported stockholders’ equity values throughout the period, indicating possible adjustments that positively impact the net equity. The parallel increases in both data series suggest consistent financial improvements and potentially stronger asset quality or reserves.

Overall, the upward trajectory in equity figures reflects a robust financial position, with the company successfully expanding its capital base year over year. This may provide enhanced financial stability and capacity for future growth opportunities.

The financial data reveals several noteworthy trends in debt, equity, and capital over the five-year period analyzed.

Total Reported Debt

Total reported debt demonstrates a declining trend from 138,656 thousand USD in 2020 to 66,456 thousand USD in 2023, indicating a reduction in liabilities. However, a significant increase occurs in 2024, with debt rising sharply to 262,126 thousand USD, more than tripling the previous year. This sudden rise suggests a major financing event or increased borrowing during that period.

Stockholders’ Equity

Stockholders’ equity exhibits consistent growth throughout the period, starting at 242,171 thousand USD in 2020 and increasing steadily each year to reach 642,572 thousand USD by 2024. The growth rate accelerates particularly after 2022, implying strong retained earnings or possibly new equity issuances contributing to a solid equity base.

Total Reported Capital

Total reported capital, which combines debt and equity, rises from 380,827 thousand USD in 2020 to 477,473 thousand USD in 2023, reflecting the underlying movements in its components. In 2024, total reported capital sharply increases to 904,698 thousand USD, driven primarily by the large increase in debt, indicating an expansion in the company's capital structure.

Adjusted Total Debt

The adjusted total debt follows a similar trajectory to the reported total debt, decreasing from 152,978 thousand USD in 2020 to 82,167 thousand USD in 2023, then surging to 290,601 thousand USD in 2024. The adjustment seemingly reflects a consistent but slightly higher debt measure, maintaining the overall trend of debt reduction followed by a substantial increase.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increases steadily from 265,048 thousand USD in 2020 to 645,617 thousand USD in 2024, mirroring the trend of reported equity. This consistent growth suggests strengthening financial stability and potentially increasing value for shareholders over time.

Adjusted Total Capital

Adjusted total capital rises modestly from 418,026 thousand USD in 2020 to 496,463 thousand USD in 2023, then more than doubles to 936,218 thousand USD in 2024. This is consistent with the significant increase in adjusted debt and equity, reflecting a substantial expansion in the company's capital base in the most recent year analyzed.

In summary, the data indicates a period of debt reduction and capital growth from 2020 through 2023, followed by a pronounced increase in debt and total capital in 2024. The sustained growth in equity throughout the period suggests increasing shareholder value, while the sudden spike in debt warrants further investigation to understand its drivers and potential impact on risk and leverage.

The financial data over the five-year period reflects significant fluctuations and an overall strong growth trajectory in income figures.

Net Income

The net income experienced an initial decline from 17,884 thousand USD in 2020 to 6,232 thousand USD in 2021, indicating a challenging year. However, there was a notable recovery in 2022 with income rising to 21,770 thousand USD, followed by a substantial increase to 61,530 thousand USD in 2023. By 2024, net income more than doubled compared to the previous year, reaching 127,663 thousand USD. This upward trend after 2021 suggests improved operational performance and possibly favorable market conditions or strategic initiatives driving profitability.

Adjusted Net Income

The adjusted net income shows a similar pattern but with more pronounced volatility. It started at 21,027 thousand USD in 2020, then dropped sharply to a negative figure of -3,152 thousand USD in 2021, highlighting a significant period of adjustments or one-time items adversely impacting profitability. Following this trough, there was a recovery to 17,969 thousand USD in 2022, and a considerable growth thereafter, reaching 55,129 thousand USD in 2023. In 2024, adjusted net income rose dramatically to 125,437 thousand USD, closely aligning with the net income figure and indicating strong underlying earnings after adjustments.

Overall, the data suggests that after a difficult year in 2021, financial performance improved markedly, with both net and adjusted net income showing robust growth. The closing years reveal enhanced profitability and a potentially stable earnings base, as reflected by the convergence of adjusted and reported net income figures in the later periods.