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

Debt to equity ratio trends

The debt to equity ratio shows a consistent downward trend from June 30, 2019 (0.66) through September 30, 2023 (0.12), indicating a steady reduction in debt relative to equity during this period. However, a notable uptick occurs starting in December 31, 2023 (0.43), continuing to June 30, 2024 (0.37), suggesting an increase in leverage more recently.

Debt to equity ratio including operating lease liability

This ratio mirrors the general pattern of the standard debt to equity ratio, declining from 0.72 in mid-2019 to 0.15 by September 30, 2023. A reversal is evident thereafter, with the ratio rising again to 0.42 as of December 31, 2023, and maintaining an elevated level near 0.44 by mid-2024. This highlights that operating lease liabilities impact total debt similarly over time.

Debt to capital ratio behavior

The debt to capital ratio gradually decreases from 0.40 at June 2019 to a low of 0.11 by September 2023, reflecting a reduction in the proportion of debt relative to total capital. Following this prolonged decline, the ratio climbs moderately to 0.27 by June 2024, aligning with the more recent increase in leverage observed in other debt metrics.

Debt to capital including operating lease liability

Including operating lease liabilities, this ratio shows a similar pattern to the standard debt to capital metric, decreasing steadily from 0.42 in mid-2019 to 0.13 at September 2023, before rising slightly to 0.30 in mid-2024. This suggests operating lease obligations contribute to capital structure considerations but follow the overall debt movement trend.

Debt to assets ratio development

The standard debt to assets ratio declines consistently from 0.34 at June 2019 to 0.08 at September 2023, denoting a decreasing reliance on debt versus total assets. Subsequently, a rebound is observed, with the ratio increasing to 0.22 by June 2024, likely reflecting a change in financing or asset structure.

Debt to assets ratio including operating lease liability

When factoring in operating lease liabilities, the debt to assets ratio also falls from 0.37 in jun-2019 to 0.10 by September 2023 before rising gradually to 0.25 in June 2024. This confirms the presence of lease liabilities slightly elevates the measured debt level but follows the decline-then-rise pattern.

Financial leverage ratio pattern

The financial leverage ratio shows a downward trend from 1.96 in June 2019 to a low around 1.39-1.45 during late 2022 and into early 2023, indicating decreasing leverage. Despite this, a sharp increase starts by March 31, 2024 (1.80), dipping slightly thereafter but staying elevated compared to the recent lows. This implies a shift towards higher leverage in the latest quarters.

Summary of overall trends

Across the analyzed financial ratios, the company demonstrates a clear trend of deleveraging from mid-2019 through most of 2023, with reductions in debt relative to equity, capital, and assets. This suggests improved balance sheet strength and lower financial risk over that timeframe. However, beginning in late 2023, observable ratio increases indicate a reversal towards higher leverage, possibly reflecting increased borrowing or changes in lease financing commitments. The fluctuations in financial leverage ratios support this interpretation, pointing to strategic shifts or external factors influencing capital structure.

Total Debt

The total debt consistently decreased from June 30, 2019, through March 31, 2023, dropping from $146,192 thousand to $66,867 thousand. This signifies a steady reduction in the company’s debt levels over nearly four years. However, from March 31, 2024, onwards, there is an abrupt and significant increase in total debt, reaching $262,172 thousand by June 30, 2024. This sharp rise contrasts strongly with the previous downward trend and suggests a substantial new borrowing or debt issuance during this recent period.

Stockholders’ Equity

Stockholders’ equity showed a consistent upward trajectory throughout the entire period, increasing from $222,008 thousand on June 30, 2019, to $703,590 thousand as of June 30, 2024. This growth reflects continual accumulation of retained earnings or new equity investments, indicating strengthening of the company’s net asset position over time. The increase appears steady without evident volatility or contraction.

Debt to Equity Ratio

The debt to equity ratio declined progressively from 0.66 on June 30, 2019, to a low of 0.12 by December 31, 2023. This trend indicates a reduction in leverage, reflecting a move toward a more conservative capital structure dominated by equity rather than debt. However, the ratio then rises notably to 0.37 by June 30, 2024, illustrating a significant relative increase in debt compared to equity. This shift aligns with the spike in total debt observed in the same timeframe, though equity continues to rise, albeit at a slower rate relative to debt growth during this recent period.

Total debt (including operating lease liability)

The total debt demonstrated a general downward trend from June 2019 through March 2023, decreasing from approximately 160 million USD to near 75 million USD. This reflects a significant deleveraging phase over several years. However, there was a notable reversal starting in March 2024, where total debt surged sharply to around 295 million USD, more than tripling compared to the previous low point. This abrupt increase indicates a major shift in the company's financing or capital structure strategy.

Stockholders’ equity

Stockholders’ equity consistently increased across the entire period, indicating ongoing growth in the company's net assets. From June 2019 to March 2024, equity rose steadily from about 222 million USD to over 703 million USD. This upward trajectory suggests sustained profitability, retained earnings accumulation, or capital infusions over time. The growth in equity was particularly marked in the later periods, reflecting strengthening financial position prior to and beyond early 2024.

Debt to equity ratio (including operating lease liability)

The debt to equity ratio exhibited a clear downward trend from mid-2019 to early 2023, falling from 0.72 to a low of 0.15. This trend aligns with the reduction in total debt combined with the rise in equity, signifying improved financial leverage and a conservative capital structure. Nevertheless, the ratio reversed course sharply in 2024, increasing to 0.42 by June 2024. This rise corresponds with the large spike in debt, indicating increased reliance on debt financing and a comparatively less conservative leverage position at the end of the reported interval.

Summary of trends and insights

The data reveals a period of strategic debt reduction and equity growth from 2019 through early 2023, illustrating strengthening financial health and lower leverage risk. This phase suggests effective debt management and a focus on building shareholder value. The sudden and pronounced increase in total debt in 2024, alongside the resulting rise in the debt to equity ratio, signals a significant change in financial policy or an increase in borrowing needs. This shift could reflect new investments, acquisitions, or other financing requirements that merit further investigation. Overall, the company improved its balance sheet conservatism until early 2023 but moved toward higher indebtedness in 2024.

Total Debt

The total debt demonstrates a general declining trend from June 30, 2019, through March 31, 2023, decreasing consistently from approximately $146.2 million to roughly $66.0 million. This decrease signifies a steady reduction in debt levels over the four-year span. However, a notable reversal occurs starting from June 30, 2023, where total debt abruptly increases to about $264.8 million, maintaining a similar elevated level through June 30, 2024. This sharp rise suggests a significant new debt issuance or increased borrowing in the most recent periods.

Total Capital

Total capital displays a generally upward trajectory over the observed periods. Beginning at approximately $368.2 million in June 2019, it experiences moderate growth, reaching around $579.4 million by September 2023. A more pronounced surge occurs from December 31, 2023, onward, where capital peaks near $965.8 million by June 2024. The increase in total capital indicates enhanced financing capacity or asset base expansion, especially notable in the latter periods coinciding with the rise in total debt.

Debt to Capital Ratio

The debt to capital ratio reveals a clear downward trend from 0.40 in June 2019 to a low of about 0.11 in September 2023, reflecting a stronger equity position relative to debt and an overall deleveraging process. Nonetheless, this pattern shifts significantly after this point, with the ratio increasing to 0.30 by December 31, 2023, and then slightly declining but remaining elevated around 0.27 by June 2024. This indicates a considerable increase in leverage consistent with the surge in absolute debt and total capital in the most recent quarters.

Overall Analysis

From mid-2019 through early 2023, the data depict a period of financial strengthening characterized by declining debt levels, steady capital growth, and improving leverage ratios. Such trends typically suggest prudent financial management, risk reduction, or repayment of liabilities. The abrupt changes occurring in mid-2023 imply a strategic shift, possibly involving new financing arrangements or capital investments leading to a higher debt burden and increased total capital. The resultant higher debt to capital ratio signals increased financial leverage, warranting further examination of the underlying causes and implications for the company’s risk profile and cost of capital.

Total Debt (including operating lease liability)

The total debt remained relatively stable from mid-2019 through early 2023, fluctuating moderately around the range of approximately $110 million to $160 million. Notably, a significant increase occurred starting in March 2024, where total debt more than tripled compared to previous quarters, rising sharply to nearly $296 million by June 2024. This sudden escalation contrasts with the generally stable debt levels seen in prior periods.

Total Capital (including operating lease liability)

Total capital showed a steady upward trend throughout the entire period from June 2019 to June 2024. From a base of around $382 million in mid-2019, capital consistently increased, initially with moderate increments, followed by accelerated growth after 2022. By June 2024, total capital had reached approximately $999 million, representing a substantial expansion over five years.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio exhibited a clear downward trend from 0.42 in mid-2019 to a low of 0.13 by late 2023, indicating a decreasing reliance on debt relative to capital. This suggests improved leverage management or increased equity/capital base during this period. However, in early 2024, this ratio reversed its trend sharply, rising to around 0.30 by mid-2024, concurrent with the sharp increase in total debt. This indicates a shift toward higher leverage or increased debt financing relative to capital in the latest periods.

The analysis of the quarterly financial data reveals several notable trends related to the company's leverage and asset base over the observed periods.

Total Debt

The total debt exhibited a generally declining trend from June 30, 2019, through March 31, 2023, decreasing from approximately 146.2 million US dollars to around 66.0 million US dollars. This reduction indicates a consistent effort in deleveraging over this timeframe. However, a significant increase in total debt is observed starting from March 31, 2024, where debt rose sharply to about 264.8 million US dollars, maintaining a high level thereafter. This sudden increase contrasts with the previous downward pattern and may suggest new financing activities or increased borrowing for strategic reasons.

Total Assets

Total assets showed a steady and continuous upward trend throughout the entire period. Starting at roughly 436.0 million US dollars in June 2019, assets increased consistently each quarter, reaching over 1.2 billion US dollars by June 30, 2024. This growth reflects expanding asset holdings which could be the result of business expansion, acquisitions, or reinvestment of earnings.

Debt to Assets Ratio

The debt to assets ratio steadily declined from 0.34 in June 2019 to a low of around 0.08 by December 2023, indicating an improving balance sheet with relatively less leverage compared to asset growth. This suggests enhanced financial stability and lower risk exposure over this timeframe. However, in the quarters beginning March 31, 2024, this ratio surged abruptly to approximately 0.24 and then slightly decreased to 0.22 by June 30, 2024. This increase aligns with the spike in total debt and may temporarily raise leverage risk, despite continued asset growth.

Overall, the company's financial profile demonstrates disciplined debt reduction alongside asset accumulation for nearly four years. The recent quarter shows a reversal in the deleveraging trend with substantial borrowing, impacting leverage ratios despite asset growth. This shift may reflect strategic financial decisions that warrant further scrutiny regarding purpose and potential risks.

The analysis of the quarterly financial data reveals several significant trends across the observed periods.

Total Debt (Including Operating Lease Liability)

From mid-2019 through early 2023, total debt showed a general downward trend. Initially, debt levels fluctuated moderately around the 140,000 to 160,000 thousand US dollars range, with a notable decline beginning in late 2021. By March 2023, total debt reached a low of approximately 80,196 thousand US dollars, representing a substantial reduction from earlier periods. However, a sharp increase in debt is apparent starting in the quarters following March 2023, with total debt rising significantly to over 295,000 thousand US dollars by the quarter ending June 2024.

Total Assets

Total assets demonstrated a sustained upward trend over the entire period. Beginning at about 436,000 thousand US dollars in June 2019, assets grew steadily with only minor short-term fluctuations. The growth accelerated notably from 2022 onward, culminating in total assets exceeding 1,200,000 thousand US dollars by mid-2024. This represents a near threefold increase over the five-year period, indicating strong asset accumulation or valuation changes.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio decreased consistently from 0.37 in mid-2019 to a low of approximately 0.10 by late 2023, reflecting a combination of debt reduction and asset growth. This decline suggests an improvement in financial leverage and solvency metrics during this period. However, beginning in the final quarters of the dataset, the ratio reversed direction sharply, climbing back to around 0.25 by mid-2024. This upward movement corresponds with the large increase in total debt relative to assets, indicating increased financial leverage or potential risk.

Overall, the data depicts a phase of deleveraging and asset growth leading to improved balance sheet strength through to early 2023, followed by a period of rapid debt accumulation and increased leverage thereafter. This shift in financial structure warrants attention due to its implications for the company's risk profile and liquidity management.

The financial data reveals evolving trends in total assets, stockholders' equity, and financial leverage over the period from June 2019 to June 2024. Each parameter exhibits distinct patterns that provide insight into the company's financial structure and growth trajectory.

Total Assets

Total assets have shown a generally consistent upward trend throughout the timeframe. Starting at approximately $436 million in mid-2019, assets increased modestly into early 2021, fluctuating around the $490 million mark. From mid-2021 onward, there is a noticeable acceleration in asset growth, culminating in a substantial rise to over $1.2 billion by mid-2024. This reflects significant asset accumulation particularly in the last few quarters, indicating expansion or increased investment.

Stockholders’ Equity

Stockholders’ equity has steadily increased during the period under review. Beginning at roughly $222 million in June 2019, equity grew consistently, reaching approximately $312 million by the first quarter of 2022. The growth rate appeared to accelerate more prominently post-2022, climbing from $333 million in mid-2022 to over $700 million by June 2024. This increase suggests sustained profitability, retained earnings growth, or possible equity financing contributing to strengthening the company's net assets.

Financial Leverage

The financial leverage ratio, which compares total assets to stockholders’ equity, shows a declining trend from 1.96 in June 2019 to a low of approximately 1.39 by mid-2023. This decline indicates a reduction in reliance on debt relative to equity, signifying an improvement in the company's capital structure and potentially greater financial stability. However, after this low point, the leverage ratio rises sharply to 1.8 in late 2023 before slightly moderating to 1.71 by June 2024. This recent increase suggests a renewed increase in asset financing through liabilities or debt, possibly related to the rapid asset growth observed earlier.

In summary, the company demonstrates robust growth in both assets and equity, with a notable strengthening of the equity base relative to assets until mid-2023. The fluctuations in financial leverage indicate dynamic changes in financing strategies, with recent periods showing increased leverage that may warrant monitoring to assess impacts on financial risk and capital costs going forward.