Return on Assets (ROA)
since 2016
Calculation
e.l.f. Beauty, Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2024 | 11.31% | = | 100 | × | 127,663) | ÷ | 1,129,247) |
| Mar 31, 2023 | 10.33% | = | 100 | × | 61,530) | ÷ | 595,601) |
| Mar 31, 2022 | 4.40% | = | 100 | × | 21,770) | ÷ | 494,632) |
| Mar 31, 2021 | 1.28% | = | 100 | × | 6,232) | ÷ | 487,393) |
| Mar 31, 2020 | 3.95% | = | 100 | × | 17,884) | ÷ | 453,104) |
| Dec 31, 2018 | 3.56% | = | 100 | × | 15,525) | ÷ | 435,856) |
| Dec 31, 2017 | 8.02% | = | 100 | × | 33,475) | ÷ | 417,244) |
| Dec 31, 2016 | 1.28% | = | 100 | × | 5,313) | ÷ | 414,729) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 US$ in thousands
The financial performance between December 31, 2016, and March 31, 2024, is characterized by an initial period of volatility followed by a phase of aggressive growth and improved asset efficiency. While the early years showed fluctuating returns, the most recent three fiscal years demonstrate a significant upward trajectory in both absolute profitability and the ability to generate earnings from the asset base.
- Net Income Trends
- Net income exhibited substantial volatility from 2016 to 2021, with a notable peak in 2017 followed by a decline and a subsequent low point in March 2021. However, a strong recovery began in 2022, leading to exponential growth. By March 31, 2024, net income reached 127,663 thousand US$, representing a significant increase from the 61,530 thousand US$ reported in 2023 and a vast improvement over the levels seen in the preceding five years.
- Asset Base Expansion
- Total assets remained relatively stable between 2016 and 2022, fluctuating within a narrow range of approximately 414 million to 495 million US$. A pivot occurred in 2023, with assets increasing to 595,601 thousand US$, followed by a rapid expansion to 1,129,247 thousand US$ by March 31, 2024. This indicates a massive scaling of the company's operational infrastructure or investment capacity in the final two years of the period.
- Return on Assets (ROA) Analysis
- The ROA mirrored the volatility of net income in the first half of the analysis, dropping to a low of 1.28% in 2021. A reversal of this trend is observed starting in 2022, as the ROA climbed to 4.40%. The efficiency of asset utilization accelerated sharply in 2023 and 2024, reaching 10.33% and 11.31%, respectively. This suggests that the recent growth in net income has outpaced the growth in total assets, resulting in higher operational efficiency.
- Comparative Efficiency Insight
- The period ending March 31, 2024, marks the highest level of asset productivity in the reported history. Despite the doubling of total assets between 2023 and 2024, the ROA continued to rise, indicating that the company successfully scaled its operations while simultaneously increasing its profit margins relative to its investment base.
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Comparison to Competitors
e.l.f. Beauty, Inc., ROA, long-term trends, comparison to competitors
| e.l.f. Beauty, Inc. | Procter & Gamble Co. | |
|---|---|---|
| Mar 31, 2024 | 11.31% | 12.16% |
| Mar 31, 2023 | 10.33% | 12.13% |
| Mar 31, 2022 | 4.40% | 12.58% |
| Mar 31, 2021 | 1.28% | 11.99% |
| Mar 31, 2020 | 3.95% | 10.79% |
| Dec 31, 2018 | 3.56% | 8.24% |
| Dec 31, 2017 | 8.02% | 12.73% |
| Dec 31, 2016 | 1.28% | 8.27% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
Comparison to Industry (Consumer Staples)
e.l.f. Beauty, Inc., ROA, long-term trends, comparison to industry (consumer staples)
| e.l.f. Beauty, Inc. | Consumer Staples | |
|---|---|---|
| Mar 31, 2024 | 11.31% | 8.89% |
| Mar 31, 2023 | 10.33% | 8.28% |
| Mar 31, 2022 | 4.40% | 8.95% |
| Mar 31, 2021 | 1.28% | 8.75% |
| Mar 31, 2020 | 3.95% | 8.24% |
| Dec 31, 2018 | 3.56% | 8.40% |
| Dec 31, 2017 | 8.02% | 7.42% |
| Dec 31, 2016 | 1.28% | 7.94% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).