Name: e.l.f. Beauty, Inc. (NYSE:ELF) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Download chart

e.l.f. Beauty, Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Net income	127,663)	61,530)	21,770)	6,232)	17,884)
Depreciation and amortization	35,913)	22,164)	27,083)	25,179)	22,843)
Restructuring expense (income)	—)	—)	50)	2,641)	(5,982)
Stock based compensation expense	40,625)	29,117)	19,646)	19,682)	15,488)
Amortization of debt issuance costs and discount on debt	430)	346)	394)	847)	747)
Deferred income taxes	(3,276)	(6,401)	(3,701)	(8,584)	2,443)
Impairment of equity investment	2,875)	—)	—)	—)	—)
Acquisition-related seller expenses	(10,549)	—)	—)	—)	—)
Loss on extinguishment of debt	—)	176)	460)	—)	—)
Other, net	1,227)	179)	496)	383)	873)
Accounts receivable	(49,598)	(22,432)	(5,597)	(10,529)	2,504)
Inventory	(93,930)	3,174)	(27,655)	(10,937)	(435)
Prepaid expenses and other assets	(55,182)	(24,553)	(10,555)	(9,659)	(6,500)
Accounts payable and accrued expenses	81,215)	42,995)	1,498)	17,472)	5,962)
Other liabilities	(6,259)	(4,412)	(4,376)	(3,252)	(11,514)
Changes in operating assets and liabilities	(123,754)	(5,228)	(46,685)	(16,905)	(9,983)
Adjustments to reconcile net income to net cash provided by operating activities	(56,509)	40,353)	(2,257)	23,243)	26,429)
Net cash provided by operating activities	71,154)	101,883)	19,513)	29,475)	44,313)
Acquisition, net of cash acquired	(274,973)	—)	—)	—)	(25,923)
Purchase of property and equipment	(8,659)	(1,723)	(4,818)	(6,474)	(9,422)
Investment contributions	(1,028)	—)	—)	—)	—)
Net cash used in investing activities	(284,660)	(1,723)	(4,818)	(6,474)	(35,345)
Proceeds from revolving line of credit	89,500)	—)	26,480)	20,000)	—)
Repayment of revolving line of credit	—)	—)	(26,480)	(20,000)	—)
Proceeds from long-term debt	115,000)	—)	25,581)	—)	—)
Repayment of long-term debt	(7,875)	(30,000)	(54,525)	(11,756)	(9,488)
Debt issuance costs paid	(665)	—)	(1,064)	(334)	—)
Repurchase of common stock	—)	—)	—)	—)	(7,904)
Cash received from issuance of common stock	5,561)	8,053)	1,677)	1,503)	1,488)
Other, net	(576)	(788)	(779)	(813)	(771)
Net cash provided by (used in) financing activities	200,945)	(22,735)	(29,110)	(11,400)	(16,675)
Effect of exchange rate changes on cash and cash equivalents	(34)	—)	—)	—)	—)
Net increase (decrease) in cash and cash equivalents	(12,595)	77,425)	(14,415)	11,601)	(7,707)
Cash and cash equivalents, beginning of period	120,778)	43,353)	57,768)	46,167)	53,874)
Cash and cash equivalents, end of period	108,183)	120,778)	43,353)	57,768)	46,167)

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

The company has experienced a period of significant profitability growth, characterized by a substantial increase in net income from 17.8 million US dollars in 2020 to 127.6 million US dollars in 2024. However, this growth in accounting profit has not translated linearly into operating cash flow, which has exhibited volatility and was impacted by aggressive working capital requirements in the most recent fiscal year.

Operating Activities and Cash Conversion: Net cash provided by operating activities peaked in 2023 at 101.8 million US dollars before declining to 71.1 million US dollars in 2024. A notable divergence is observed in 2024, where net income reached its highest point, but operating cash flow decreased. This discrepancy is primarily attributed to a significant increase in the use of cash for operating assets, totaling a net outflow of 123.7 million US dollars in changes to operating assets and liabilities. Specifically, cash outflows for inventory increased to 93.9 million US dollars and prepaid expenses grew to 55.1 million US dollars in 2024, indicating a heavy investment in working capital to support scaling operations.
Investing Activities and Strategic Expansion: Investing activities remained relatively conservative between 2021 and 2023, with annual capital expenditures for property and equipment ranging from 1.7 million to 6.4 million US dollars. This trend shifted abruptly in 2024, with net cash used in investing activities surging to 284.6 million US dollars. This spike was driven almost entirely by a major acquisition, net of cash acquired, totaling 274.9 million US dollars, signaling a transition from organic growth to a strategic inorganic expansion phase.
Financing Activities and Capital Structure: The company's financing strategy evolved from a focus on debt reduction and shareholder returns to aggressive capital raising. From 2020 to 2023, financing activities resulted in net cash outflows, including consistent repayments of long-term debt and a common stock repurchase in 2020. In 2024, this trend reversed sharply, with net cash provided by financing activities reaching 200.9 million US dollars. This influx was primarily funded through 115 million US dollars in new long-term debt and 89.5 million US dollars from a revolving line of credit, effectively financing the acquisition activities observed in the investing section.
Liquidity and Cash Position: The ending cash and cash equivalents position has remained relatively stable over the five-year period, fluctuating between a low of 43.3 million US dollars in 2022 and a high of 120.7 million US dollars in 2023. Despite the massive financing inflow in 2024, the company ended the period with 108.1 million US dollars, as the cash provided by financing and operations was largely absorbed by the acquisition and the build-up of inventory and other operating assets.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?