Return on Equity (ROE)
since 2016
Calculation
e.l.f. Beauty, Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2024 | 19.87% | = | 100 | × | 127,663) | ÷ | 642,572) |
| Mar 31, 2023 | 14.97% | = | 100 | × | 61,530) | ÷ | 411,017) |
| Mar 31, 2022 | 6.97% | = | 100 | × | 21,770) | ÷ | 312,429) |
| Mar 31, 2021 | 2.31% | = | 100 | × | 6,232) | ÷ | 269,646) |
| Mar 31, 2020 | 7.38% | = | 100 | × | 17,884) | ÷ | 242,171) |
| Dec 31, 2018 | 6.77% | = | 100 | × | 15,525) | ÷ | 229,331) |
| Dec 31, 2017 | 17.27% | = | 100 | × | 33,475) | ÷ | 193,863) |
| Dec 31, 2016 | 3.77% | = | 100 | × | 5,313) | ÷ | 140,862) |
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 analysis of Return on Equity (ROE) indicates a transition from a period of significant volatility to a phase of sustained and accelerating growth. While stockholders' equity has maintained a consistent upward trajectory throughout the observation period, the fluctuations in ROE were primarily driven by variations in net income.
- Profitability Volatility (2016–2021)
- ROE experienced substantial instability during this timeframe, peaking at 17.27% in 2017 before declining to a period low of 2.31% by March 31, 2021. This volatility coincided with inconsistent net income levels, which reached US$ 33.48 million in 2017 but contracted to US$ 6.23 million in 2021.
- Equity Expansion Trends
- Stockholders' equity demonstrated steady and uninterrupted growth, increasing from US$ 140.86 million in 2016 to US$ 642.57 million in 2024. This consistent expansion reflects a strengthening capital base, although the ROE suggests that the efficiency of this capital varied significantly until the most recent fiscal years.
- Performance Acceleration (2022–2024)
- A strong recovery in ROE is observed starting in 2022, with the ratio climbing from 6.97% to 19.87% by March 31, 2024. This upward trend was fueled by an exponential surge in net income, which rose from US$ 21.77 million in 2022 to US$ 127.66 million in 2024. The rate of profit growth during this period significantly outpaced the growth of stockholders' equity, resulting in a substantial improvement in overall capital efficiency.
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Comparison to Competitors
e.l.f. Beauty, Inc., ROE, long-term trends, comparison to competitors
| e.l.f. Beauty, Inc. | Procter & Gamble Co. | |
|---|---|---|
| Mar 31, 2024 | 19.87% | 29.59% |
| Mar 31, 2023 | 14.97% | 31.33% |
| Mar 31, 2022 | 6.97% | 31.64% |
| Mar 31, 2021 | 2.31% | 30.85% |
| Mar 31, 2020 | 7.38% | 28.00% |
| Dec 31, 2018 | 6.77% | 18.64% |
| Dec 31, 2017 | 17.27% | 27.77% |
| Dec 31, 2016 | 3.77% | 18.33% |
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., ROE, long-term trends, comparison to industry (consumer staples)
| e.l.f. Beauty, Inc. | Consumer Staples | |
|---|---|---|
| Mar 31, 2024 | 19.87% | 32.18% |
| Mar 31, 2023 | 14.97% | 30.71% |
| Mar 31, 2022 | 6.97% | 32.10% |
| Mar 31, 2021 | 2.31% | 31.40% |
| Mar 31, 2020 | 7.38% | 30.98% |
| Dec 31, 2018 | 6.77% | 28.05% |
| Dec 31, 2017 | 17.27% | 25.14% |
| Dec 31, 2016 | 3.77% | 25.00% |
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).