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

Total Asset Turnover

The total asset turnover ratio displayed an upward trend from 0.62 in 2020 to a peak of 0.97 in 2023, indicating improved efficiency in using assets to generate revenue. However, there was a slight decline to 0.91 in 2024, though the ratio remains significantly higher than earlier years.

Current Ratio

The current ratio generally remained stable and above 2 from 2020 through 2023, reaching as high as 2.97 in 2022, reflecting a solid short-term liquidity position. In 2024, the ratio sharply declined to around 1.6, suggesting a reduction in current assets relative to current liabilities and potentially tighter liquidity conditions.

Debt to Equity Ratio

This ratio consistently decreased from 0.57 in 2020 to a low of 0.16 in 2023, indicating a reduction in reliance on debt relative to equity. However, in 2024, the ratio increased again to approximately 0.41, which suggests a renewed use of debt financing or a change in capital structure towards higher leverage.

Debt to Capital Ratio

Similar to debt to equity, the debt to capital ratio decreased steadily from 0.36 in 2020 to 0.14 in 2023, showing a lower proportion of debt within the company’s capital structure. The ratio rose again to about 0.31 in 2024, consistent with an increased leverage trend observed in the debt to equity ratio.

Financial Leverage

Financial leverage declined from 1.87 in 2020 to 1.45 in 2023, indicating a gradual reduction in the use of borrowed funds relative to equity. In 2024, a rise to 1.76 was observed, reflecting higher leverage levels after several years of decline.

Net Profit Margin

The net profit margin showed volatility with an initial decline from 6.32% in 2020 to a negative adjusted margin in 2021, followed by a strong recovery and continuous improvement to 12.47% (reported) in 2024. This indicates enhanced profitability and operational effectiveness over the longer term despite some short-term challenges.

Return on Equity (ROE)

ROE experienced a similar pattern to net profit margin, dropping substantially in 2021 to around 2.31% (reported) and negatively adjusted levels, before rising sharply to nearly 20% in 2024. This suggests improved efficiency in generating profit from shareholders’ equity over the period.

Return on Assets (ROA)

ROA started at a moderate 3.95% in 2020, declined somewhat in 2021, but then steadily increased to over 11% in 2024. This progression implies that the company has become more effective in utilizing its assets to generate earnings.

The financial data shows a significant growth trajectory over the five-year period, with net sales exhibiting a strong upward trend. Net sales increased steadily from US$282.9 million in 2020 to over US$1.02 billion in 2024, demonstrating substantial revenue expansion. This reflects a compounded growth pattern, especially notable from 2022 onward, where sales surged markedly.

Total assets also experienced growth but at a more moderate pace compared to net sales. Total assets grew from approximately US$453.1 million in 2020 to US$1.13 billion in 2024. This indicates that the company expanded its asset base significantly, nearly doubling its assets in the five-year span.

The reported and adjusted total asset turnover ratios tell a story about how efficiently the company is utilizing its assets to generate sales. Both metrics closely align, signaling consistent calculation adjustments. The turnover ratio improved from 0.62 in 2020 to a peak of 0.97 in 2023, implying increasing efficiency in asset utilization. However, there was a slight decline to 0.91 in 2024, which could indicate a small reduction in efficiency or an increase in assets outpacing sales growth during that year.

Net Sales

Showed a robust increase year-over-year, nearly quadrupling over the period. The acceleration of sales growth, particularly from 2022 to 2024, suggests successful market expansion or product acceptance.

Total Assets

Increased steadily, supporting the higher sales volume. The asset base nearly doubled, pointing to potential investments in capacity, infrastructure, or acquisitions to sustain business growth.

Total Asset Turnover

Improved notably until 2023, reflecting higher operational efficiency and effective use of assets to generate sales. The mild decline in 2024 may warrant further investigation but does not offset the overall positive trend in asset management efficiency.

Overall, the data indicates a company experiencing rapid growth in sales supported by a growing asset base, with improving efficiency in utilizing those assets up to the most recent full year available. The slight decrease in asset turnover in the latest period suggests a possible shift in strategy or operational dynamics that should be monitored going forward.

The financial data indicates significant movements in both current assets and current liabilities over the five-year period ending March 31, 2024.

Current Assets

There is a consistent upward trend in current assets, increasing steadily from $132,360 thousand in 2020 to $477,077 thousand in 2024. This represents a more than threefold increase over the period, with the most substantial growth observed between 2022 and 2024.

Current Liabilities

Current liabilities have also increased considerably, rising from $51,123 thousand in 2020 to $299,115 thousand in 2024. The liabilities show some fluctuations, with a slight dip in 2022 but a sharp increase in 2023 and 2024, particularly in the latest year when liabilities nearly tripled compared to the previous year.

Reported Current Ratio

The reported current ratio, a measure of short-term liquidity, shows variability. Starting at 2.59 in 2020, it dropped to 2.32 in 2021, then improved to 2.97 in 2022 and slightly decreased to 2.81 in 2023. A notable decline is evident in 2024, decreasing sharply to 1.59, indicating a reduction in liquidity and a narrower margin of current assets relative to current liabilities.

Adjusted Current Assets and Ratios

Adjusted current assets closely mirror the reported current assets, with a marginally higher value throughout the years. Consequently, the adjusted current ratio exhibits a similar pattern to the reported current ratio, peaking around 2.97 in 2022 and declining sharply to approximately 1.6 in 2024.

Overall, the data reveals that while total current assets have grown significantly, current liabilities have increased at a faster rate in the most recent year, adversely affecting liquidity ratios. This decline in the current ratio in 2024 suggests a potential liquidity risk, indicating that the company may face challenges in meeting short-term obligations unless current assets are managed effectively or liabilities are controlled.

Total Debt

The total debt decreased steadily from 138,656 thousand US dollars in March 2020 to a low of 66,456 thousand US dollars in March 2023. However, there was a significant increase to 262,126 thousand US dollars by March 2024, surpassing the initial level observed in 2020.

Stockholders' Equity

Stockholders’ equity showed continuous growth throughout the period, rising from 242,171 thousand US dollars in March 2020 to 642,572 thousand US dollars in March 2024. This reflects a consistent strengthening of the company’s net assets over the five-year span.

Reported Debt to Equity Ratio

The reported debt to equity ratio exhibited a downward trend from 0.57 in March 2020 to 0.16 in March 2023, indicating a declining leverage and improved equity base. However, this ratio rose again to 0.41 by March 2024, corresponding with the sharp increase in total debt.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to reported total debt. It decreased from 152,978 thousand US dollars in March 2020 to 82,167 thousand US dollars in March 2023, before sharply increasing to 290,601 thousand US dollars by March 2024. The adjusted figures consistently remained higher than the reported debt.

Adjusted Stockholders' Equity

The adjusted stockholders’ equity consistently increased from 265,048 thousand US dollars in March 2020 to 645,617 thousand US dollars in March 2024, mirroring the trend seen in reported equity and indicating ongoing growth in net assets on an adjusted basis.

Adjusted Debt to Equity Ratio

This ratio decreased progressively from 0.58 in March 2020 to a low of 0.20 in March 2023, confirming a reduction in leverage and a stronger equity position when adjusted for certain items. Similar to the reported ratio, it then increased to 0.45 by March 2024, reflecting the increased adjusted debt level in the latest period.

The financial data reveals notable fluctuations in debt levels and capital structure across the five-year period ending March 31, 2024.

Total Debt

Total debt declined steadily from US$138.7 million in 2020 to US$66.5 million in 2023, indicating a reduction in leverage during the initial four years. However, there was a significant increase to US$262.1 million in 2024, suggesting a reversal of the previous deleveraging trend and a substantial rise in borrowing or liabilities in the latest year.

Total Capital

Total capital consistently increased year-over-year, growing from US$380.8 million in 2020 to US$904.7 million in 2024. This growth highlights an expansion in the company’s overall capital base, possibly driven by retained earnings, equity issuance, or asset growth.

Reported Debt to Capital Ratio

The reported debt to capital ratio showed a notable downward trend from 0.36 in 2020 to 0.14 in 2023, reflecting an improving capital structure with diminishing reliance on debt financing. However, in 2024, this ratio rose to 0.29, indicating increased leverage relative to capital in that year, though still below the 2020 level.

Adjusted Total Debt

Adjusted total debt mirrored the trend in reported debt, decreasing from US$153.0 million in 2020 to US$82.2 million in 2023, followed by a sharp increase to US$290.6 million in 2024. This suggests that after adjustments for certain items, the company’s debt load still showed a similar pattern of reduction then substantial escalation.

Adjusted Total Capital

Adjusted total capital increased gradually from US$418.0 million in 2020 to US$496.5 million in 2023, followed by a marked jump to US$936.2 million in 2024. This parallels the reported total capital trend but with slightly different magnitudes, indicating adjustments made to capital components but consistent overall growth.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio declined from 0.37 in 2020 to 0.17 in 2023, showing a consistent improvement in financial leverage over the initial four years. However, in 2024, the ratio increased substantially to 0.31, reflecting the heightened leverage position noted in the other metrics.

In summary, the company appeared to steadily reduce leverage and improve its capital structure between 2020 and 2023, supported by increasing total and adjusted capital along with declining debt. This trend reversed in 2024, with a sharp rise in both debt measures and leverage ratios, accompanied by significant growth in capital. The increased leverage in the most recent year may indicate strategic financing activities, acquisitions, or other capital-intensive initiatives requiring further investigation.

The financial data shows a consistent upward trend in the company's total assets over the five-year period, with assets more than doubling from approximately US$453 million in 2020 to about US$1.13 billion in 2024. This growth is particularly notable between 2023 and 2024, where total assets nearly doubled from around US$596 million to over US$1.1 billion, indicating significant expansion or acquisition activities.

Stockholders' equity also increased steadily throughout the period. It rose from approximately US$242 million in 2020 to US$643 million in 2024 based on reported figures, reflecting strong accumulation of retained earnings or possible equity financing. The equity trajectory mirrors the growth in total assets but at a relatively slower pace initially and accelerating markedly in the last two years, particularly from 2022 through 2024.

Examining the reported financial leverage ratio, there is a general decline from 1.87 in 2020 to 1.45 in 2023, implying a reduction in reliance on debt relative to equity during this period. However, in 2024, the leverage ratio rises again to 1.76, indicating an increased proportion of debt or liabilities relative to equity despite the substantial growth in equity. This suggests a strategic shift towards greater use of financial leverage in the most recent period.

The adjusted total assets and adjusted stockholders' equity figures follow similar trends as their reported counterparts, offering a consistency check for the analysis. Adjusted total assets increase from US$454 million to approximately US$1.13 billion, while adjusted stockholders' equity grows from US$265 million to nearly US$646 million over the same timeframe. The adjusted financial leverage ratio decreases from 1.71 in 2020 to 1.44 in 2023 and then increases to 1.75 in 2024, mirroring the pattern observed in the reported leverage ratio.

Overall, the data indicates a period of steady growth in asset base and equity, with prudent leverage management through 2023. The increase in financial leverage in 2024, concurrent with significant asset and equity growth, may reflect strategic initiatives requiring additional financing or investment. Continuous monitoring of leverage levels will be important to assess the sustainability of this trend and its impact on financial risk.

The analysis of the financial data reveals several key trends over the five-year period ending March 31, 2024. Net sales have shown a consistent and substantial increase year over year, rising from $282.9 million in 2020 to over $1 billion in 2024. This represents significant growth, particularly notable in the last two years, where sales increased by approximately 48% from 2022 to 2023 and by about 77% from 2023 to 2024.

Net income also exhibits a generally upward trend, though with more volatility than sales. It declined sharply from $17.9 million in 2020 to $6.2 million in 2021, then rebounded strongly in subsequent years, reaching $127.7 million in 2024. This sharp increase in net income from 2022 onwards indicates improving profitability alongside revenue growth.

The reported net profit margin mirrors the patterns observed in net income. The margin dropped significantly in 2021 to 1.96%, reflecting weak profitability despite increasing sales. However, subsequent years show steady improvement in profitability, with the margin rising to 12.47% by 2024, demonstrating enhanced operational efficiency and cost management.

Adjusted net income shows a more fluctuating pattern, with a loss of $3.2 million in 2021, contrasting with a positive figure of $21 million in 2020. From 2022 onwards, adjusted net income improves considerably, approaching the reported net income figures by 2023 and 2024, which suggests that adjustments made to net income in earlier years were significant, possibly related to one-time items or extraordinary expenses during 2021. Correspondingly, the adjusted net profit margin follows a similar trend, being slightly negative in 2021 but improving substantially to 12.25% by 2024.

Sales Growth

Consistent and substantial increase, more than tripling over the five-year period, with acceleration in recent years.

Net Income Volatility and Improvement

A sharp decline in 2021 followed by a strong recovery and significant increase through 2024, indicating improving profitability.

Profit Margins

Net profit margins declined in 2021 but improved steadily thereafter, reaching double-digit percentages by 2023 and 2024.

Adjusted Earnings

Negative adjusted income in 2021 points to unusual or non-recurring costs that year; alignment with reported income in later years suggests normalization of earnings.

Overall, the data reflects a company that experienced a temporary setback in profitability in 2021 despite rising sales, followed by a strong recovery and growth phase marked by increasing revenues and improving profit margins. The trend towards higher adjusted net income and margins in recent years indicates enhanced financial health and operational efficiency.

The financial data reveals notable trends in profitability and equity performance over the five-year period. Net income experienced fluctuations initially, declining sharply in the year ending March 31, 2021, before rebounding significantly in subsequent years. By the year ending March 31, 2024, net income more than doubled compared to the peak in 2023, indicating a strong upward trajectory.

Stockholders’ Equity

This metric displays consistent growth each year, rising steadily from 242,171 thousand US dollars in 2020 to 642,572 thousand US dollars in 2024. The increase suggests sustained capital accumulation and a strengthening equity base.

Reported Return on Equity (ROE)

Reported ROE declined sharply in 2021, aligning with the lower net income noted in that year. However, it improved markedly thereafter, more than doubling from 6.97% in 2022 to 14.97% in 2023, and further increasing to 19.87% in 2024. This outcome suggests enhanced efficiency in generating returns for shareholders amid rising equity.

Adjusted Net Income

The adjustments reveal a slightly different picture, with an initial positive net income in 2020, a negative result in 2021, and recovery in later years. The adjusted figures reinforce the trend of robust income growth from 2022 onward, culminating in a substantial adjusted net income of 125,437 thousand US dollars in 2024.

Adjusted Stockholders’ Equity

Adjusted equity figures mirror the reported equity trend, with steady year-over-year increases. The adjusted equity rose from 265,048 thousand US dollars in 2020 to 645,617 thousand US dollars in 2024, supporting the narrative of financial strengthening.

Adjusted ROE

The adjusted return on equity shows a more volatile pattern initially, including a negative return in 2021. Nevertheless, it recovers progressively, growing from 5.58% in 2022 to 13.31% in 2023 and reaching 19.43% in 2024. This pattern suggests improvements in profitability after adjustments, albeit with some fluctuations in earlier years.

Overall, the data indicates a period of recovery and strong growth following a difficult year in 2021. Both net income and equity measures demonstrate substantial improvement, with return on equity metrics confirming enhanced shareholder value generation in the most recent years.

The financial data indicates significant fluctuations and overall growth in various key metrics over the five-year period from 2020 to 2024.

Net Income

Net income exhibited considerable volatility initially, dropping sharply from 17,884 thousand USD in 2020 to 6,232 thousand USD in 2021. Subsequently, it rebounded strongly to 21,770 thousand USD in 2022, followed by substantial increases in 2023 and 2024, reaching 61,530 thousand USD and 127,663 thousand USD respectively. This trend suggests robust improvement in profitability after an initial decline.

Total Assets

Total assets showed steady growth throughout the period. Beginning at 453,104 thousand USD in 2020, assets increased moderately each year to 487,393 thousand USD in 2021 and 494,632 thousand USD in 2022. The growth accelerated in 2023 and 2024, with total assets rising to 595,601 thousand USD and more than doubling to 1,129,247 thousand USD respectively, indicating possible expansion activities or acquisitions.

Reported Return on Assets (ROA)

The reported ROA declined from 3.95% in 2020 to a low of 1.28% in 2021, reflecting reduced efficiency or profitability relative to asset base during that year. From 2022 onwards, ROA improved substantially to 4.4%, 10.33%, and 11.31% in the subsequent years, demonstrating enhanced asset utilization and improved operational performance.

Adjusted Net Income

Adjusted net income presented a more pronounced volatility in the early years, starting at 21,027 thousand USD in 2020, turning negative to -3,152 thousand USD in 2021, and recovering to 17,969 thousand USD in 2022. From 2023, the adjusted net income increased sharply to 55,129 thousand USD and further to 125,437 thousand USD in 2024. This pattern aligns with net income trends but highlights adjustments that impacted profitability assessments during prior periods.

Adjusted Total Assets

The adjusted total assets followed a trajectory similar to total assets, growing steadily from 454,089 thousand USD in 2020 to 487,418 thousand USD in 2021 and 494,732 thousand USD in 2022. In 2023 and 2024, adjusted assets increased more markedly to 595,138 thousand USD and 1,128,626 thousand USD respectively, corroborating the expansion indicated in total assets data.

Adjusted ROA

Adjusted ROA reflected a decline from 4.63% in 2020 to a negative return of -0.65% in 2021, signaling adjusted losses relative to asset base in that year. However, the ratio improved significantly in the following years to 3.63% in 2022, then rose sharply to 9.26% in 2023 and 11.11% in 2024. This progression suggests enhanced efficiency and profitability after accounting for adjustments, paralleling the trends in net income and total assets.

Overall, the data portrays an initial period of reduced profitability and efficiency in 2021, followed by a recovery phase leading to marked improvements in profitability, asset growth, and returns on assets through 2024. The rapid increases in both net income and total assets in the last two years imply accelerated growth and operational scaling during this period.