Analysis of Geographic Areas
e.l.f. Beauty, Inc. operates in 2 regions: United States and International.
Area Asset Turnover
e.l.f. Beauty, Inc., asset turnover by geographic area
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| United States | 79.38 | 66.63 | 33.53 | 21.01 | 15.15 |
| International | 51.30 | 268.97 | 208.74 | 137.83 | 84.56 |
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 geographic area asset turnover ratios exhibit divergent trajectories between the United States and International segments over the five-year period ending March 31, 2024. While the domestic market demonstrates a consistent and accelerating trend of efficiency gains, the international segment shows a pattern of rapid expansion followed by a significant contraction.
- United States Asset Turnover
- A sustained upward trend is observed in the domestic market, with the ratio increasing from 15.15 in 2020 to 79.38 in 2024. This growth represents a more than five-fold increase in the efficiency of assets used to generate revenue within the U.S. The most significant acceleration occurred between 2022 and 2023, where the ratio nearly doubled from 33.53 to 66.63, indicating a substantial optimization of the domestic asset base.
- International Asset Turnover
- The international segment experienced an initial period of aggressive growth, with the ratio rising from 84.56 in 2020 to a peak of 268.97 in 2023. However, this trajectory reversed sharply in 2024, with the ratio falling to 51.30. This sudden decline represents the lowest efficiency level recorded for the international segment within the analyzed period, suggesting either a significant increase in international asset investments that have not yet yielded proportional revenue or a sharp decrease in international sales volume.
Comparative analysis indicates that by the end of the fiscal year 2024, the United States segment surpassed the International segment in asset turnover efficiency. The domestic market's linear progression contrasts with the volatility observed in international operations, shifting the primary driver of asset productivity from the international to the domestic region.
AI Ask an analyst for more
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?
Area Asset Turnover: United States
e.l.f. Beauty, Inc.; United States; area asset turnover calculation
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net sales | 868,076) | 506,759) | 347,484) | 284,203) | 255,284) |
| Property and equipment, net | 10,936) | 7,606) | 10,363) | 13,524) | 16,845) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 79.38 | 66.63 | 33.53 | 21.01 | 15.15 |
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).
1 2024 Calculation
Area asset turnover = Net sales ÷ Property and equipment, net
= 868,076 ÷ 10,936 = 79.38
The financial performance of the United States geographic area is characterized by rapid revenue acceleration coupled with a highly efficient, asset-light operational strategy. Between March 31, 2020, and March 31, 2024, there was a substantial increase in the capacity to generate sales relative to the investment in physical assets.
- Net Sales Performance
- A consistent and accelerating upward trend in net sales is observed, with figures rising from US$ 255.3 million in 2020 to US$ 868.1 million in 2024. The growth rate intensified significantly in the latter part of the period, particularly between 2023 and 2024, where sales increased by approximately 71% in a single fiscal year.
- Property and Equipment Utilization
- The net value of property and equipment exhibited a general decline for the majority of the period, falling from US$ 16.8 million in 2020 to a low of US$ 7.6 million in 2023. Despite a slight increase to US$ 10.9 million in 2024, the asset base remained lean and significantly lower than the 2020 level, even as sales volume expanded more than threefold.
- Area Asset Turnover Trends
- The area asset turnover ratio experienced exponential growth, increasing from 15.15 in 2020 to 79.38 in 2024. This trajectory indicates a massive improvement in operational efficiency, as the company scaled its revenue generation without requiring a proportional increase in fixed assets. The surge in the ratio suggests a highly scalable business model within the United States market, where revenue growth has far outpaced capital expenditure on property and equipment.
AI Ask an analyst for more
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?
Area Asset Turnover: International
e.l.f. Beauty, Inc.; International; area asset turnover calculation
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net sales | 155,856) | 72,085) | 44,671) | 33,907) | 27,567) |
| Property and equipment, net | 3,038) | 268) | 214) | 246) | 326) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 51.30 | 268.97 | 208.74 | 137.83 | 84.56 |
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).
1 2024 Calculation
Area asset turnover = Net sales ÷ Property and equipment, net
= 155,856 ÷ 3,038 = 51.30
The international segment exhibits a period of aggressive revenue expansion coupled with a strategic shift in asset allocation between 2020 and 2024. While net sales grew consistently and exponentially, the asset base remained nearly stagnant for several years before undergoing a significant increase in the final period.
- Net Sales Performance
- A strong upward trajectory is evident in international net sales, which rose from US$ 27.57 million in 2020 to US$ 155.86 million in 2024. The most substantial growth occurred between March 31, 2023, and March 31, 2024, where sales more than doubled, indicating a rapid scaling of international market penetration.
- Property and Equipment Trends
- Investment in net property and equipment remained minimal and relatively flat from 2020 through 2023, fluctuating between US$ 214 thousand and US$ 326 thousand. However, a sharp increase is observed in 2024, with the value rising to US$ 3.04 million, suggesting a pivot toward a more asset-intensive operational model or significant infrastructure investment to support international growth.
- Area Asset Turnover Analysis
- The area asset turnover ratio experienced a period of extreme acceleration from 2020 to 2023, peaking at 268.97. This trend reflects an asset-light growth strategy where revenue increased substantially without requiring corresponding investments in physical assets. In 2024, the ratio declined sharply to 51.30. This contraction is attributed to the disproportionate increase in property and equipment relative to the growth in sales, indicating that capital expenditures in the final year outpaced the immediate incremental gains in revenue.
AI Ask an analyst for more
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?
Net sales
e.l.f. Beauty, Inc., net sales by geographic area
US$ in thousands
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| United States | 868,076) | 506,759) | 347,484) | 284,203) | 255,284) |
| International | 155,856) | 72,085) | 44,671) | 33,907) | 27,567) |
| Total | 1,023,932) | 578,844) | 392,155) | 318,110) | 282,851) |
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).
Net sales have demonstrated a consistent and accelerating upward trajectory over the five-year period ending March 31, 2024. Total revenue increased from $282.9 million in 2020 to approximately $1.02 billion in 2024, reflecting a significant expansion in market reach and sales volume. The growth rate accelerated markedly in the latter part of the period, with total net sales nearly doubling between 2023 and 2024.
- Domestic Market Performance
- Net sales in the United States grew steadily from $255.3 million in 2020 to $868.1 million in 2024. The growth pattern shows an increasing velocity, transitioning from modest gains in 2021 to a substantial surge of over 71% in the 2024 fiscal year.
- International Market Expansion
- The international segment experienced exponential growth, rising from $27.6 million in 2020 to $155.9 million in 2024. This represents a more than five-fold increase in revenue. The acceleration was particularly evident between 2023 and 2024, where international sales increased by approximately 116%.
- Geographic Revenue Diversification
- While the United States remains the primary driver of total revenue, the proportion of sales derived from international markets increased from approximately 9.7% in 2020 to 15.2% in 2024. This shift indicates a strategic expansion into non-domestic territories and a gradual diversification of the revenue base.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Property and equipment, net
e.l.f. Beauty, Inc., property and equipment, net by geographic area
US$ in thousands
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| United States | 10,936) | 7,606) | 10,363) | 13,524) | 16,845) |
| International | 3,038) | 268) | 214) | 246) | 326) |
| Total | 13,974) | 7,874) | 10,577) | 13,770) | 17,171) |
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 total net property and equipment experienced a sustained downward trajectory from March 31, 2020, through March 31, 2023, before recording a significant recovery in the 2024 fiscal year. Total assets declined from $17.17 million in 2020 to a low of $7.87 million in 2023, representing a cumulative decrease of approximately 54%. This trend was reversed in 2024, with total net property and equipment rising to $13.97 million.
- United States Asset Trends
- Domestic net property and equipment showed a consistent year-over-year decline for three consecutive periods, falling from $16.85 million in 2020 to $7.61 million in 2023. This contraction suggests a period where depreciation and amortization likely outpaced new capital expenditures. However, the trend reversed in 2024, with domestic assets increasing to $10.94 million, indicating a renewed investment in U.S.-based infrastructure.
- International Asset Expansion
- International holdings remained marginal and relatively stagnant between 2020 and 2023, fluctuating within a narrow range between $214 thousand and $326 thousand. A pivot occurred in 2024, during which international net property and equipment surged to $3.04 million. This represents a growth of approximately 1,034% compared to the previous year, signaling a strategic expansion of the company's physical footprint outside the United States.
- Geographic Allocation Shift
- The distribution of assets has shifted toward a more globalized profile. In March 2020, United States assets accounted for approximately 98.1% of the total net property and equipment. By March 2024, although the U.S. remains the primary location for assets, the international portion grew to represent approximately 21.7% of the total, reflecting a diversification of the asset base.
AI Ask an analyst for more
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?