Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
e.l.f. Beauty, Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-06-30), 10-K (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-K (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30).
- Net Fixed Asset Turnover
- Over the observed periods, net fixed asset turnover displays a generally upward trend, indicating improved efficiency in utilizing fixed assets to generate revenue. Starting at 17.81 in June 2020, the ratio increases steadily with minor fluctuations, reaching a peak of 100.44 by September 2023. Despite a significant drop to 69.52 in December 2023, the ratio recovers to 80.63 by June 2024. This pattern suggests substantial enhancement in asset utilization, possibly due to better asset management or increased sales relative to fixed asset investments.
- Total Asset Turnover
- Total asset turnover shows a gradual and consistent increase from 0.62 in mid-2020 to above 1.0 by late 2023, indicating improved efficiency in using overall assets to generate revenue. However, in the most recent quarters, there is a slight decline from 1.03 in September 2023 down to 0.94 by June 2024. This moderation may point to changes in asset base management or revenue generation challenges as the company navigates through the latest quarter.
- Equity Turnover
- Equity turnover exhibits a steady rise throughout the timeframe, increasing from 1.16 in June 2020 to a high of 1.61 by June 2024. The improvement in this ratio reflects enhanced effectiveness in leveraging shareholders' equity to produce revenues. The increase is relatively smooth and uninterrupted, with the most notable acceleration occurring from late 2022 onward, which could coincide with strategic equity management or strong revenue growth funded by equity capital.
- Overall Observations
- The data indicate positive developments in asset and equity utilization efficiency ratios over nearly four years. Net fixed asset turnover shows the most pronounced increase, underscoring growing operational efficiency or shifts in asset utilization strategies. Both total asset turnover and equity turnover ratios support this positive trend, although the slight recent decline in total asset turnover merits monitoring. These trends collectively suggest that the company has enhanced its capacity to generate revenue relative to both asset investment and equity financing during the observed periods.
Net Fixed Asset Turnover
e.l.f. Beauty, Inc., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net sales | 324,477) | 321,143) | 270,943) | 215,507) | 216,339) | 187,357) | 146,537) | 122,349) | 122,601) | 105,135) | 98,118) | 91,855) | 97,047) | 92,671) | 88,562) | 72,350) | 64,527) | ||||||
| Property and equipment, net | 14,040) | 13,974) | 12,805) | 7,624) | 7,581) | 7,874) | 8,726) | 8,934) | 9,339) | 10,577) | 12,231) | 13,945) | 15,561) | 13,770) | 16,790) | 16,270) | 16,146) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | 80.63 | 73.27 | 69.52 | 100.44 | 88.72 | 73.51 | 56.91 | 50.17 | 44.73 | 37.08 | 31.04 | 26.54 | 22.53 | 23.10 | 17.88 | 17.97 | 17.81 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Procter & Gamble Co. | 3.73 | 3.79 | 3.82 | 3.79 | 3.85 | 3.74 | 3.75 | 3.79 | 3.91 | 3.78 | 3.73 | 3.67 | 3.61 | 3.51 | 3.55 | 3.45 | 3.47 | ||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-K (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-K (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30).
1 Q1 2025 Calculation
Net fixed asset turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Property and equipment, net
= (324,477 + 321,143 + 270,943 + 215,507)
÷ 14,040 = 80.63
2 Click competitor name to see calculations.
- Net Sales Trend
- Net sales demonstrate a consistent upward trend over the analyzed periods. Starting from approximately $64.5 million in mid-2020, net sales increase steadily each quarter, with notable acceleration seen from the end of 2022 onwards. By mid-2024, net sales reach approximately $324.5 million, representing a significant growth exceeding five times the initial figure in just four years. This suggests strong market demand and effective sales strategies over the period.
- Property and Equipment, Net
- The net value of property and equipment shows a declining trend from mid-2020 through mid-2023, decreasing from around $16.1 million to roughly $7.6 million. This decline may reflect depreciation, asset disposals, or limited new capital expenditure during this time. However, from late 2023 into mid-2024, there is a notable recovery and increase to approximately $14 million, indicating possible reinvestment into fixed assets or acquisitions during this more recent period.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio exhibits a significant increasing pattern throughout the timeline. Initially around 17.8 in mid-2020, the ratio climbs progressively, reaching an all-time high of over 100 by late 2023. This ratio drops somewhat in early 2024 but remains elevated near 80 by mid-2024. The increasing ratio suggests enhanced efficiency in generating sales from the property and equipment base. The dip in late 2023 and early 2024 aligns with the period of increased asset reinvestment, which temporarily diluted turnover efficiency before resuming improvement.
- Overall Insights
- The data indicates robust sales growth accompanied by an initially shrinking asset base but eventual asset reinvestment beginning in late 2023. The substantial rise in fixed asset turnover demonstrates improved operational efficiency in leveraging assets to generate sales. The recent asset increase likely supports continued expansion and possibly anticipates future sales growth. Monitoring capital expenditure alongside sales performance will be critical to understanding whether this rising trend in asset base translates into sustained or accelerating sales growth.
Total Asset Turnover
e.l.f. Beauty, Inc., total asset turnover calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net sales | 324,477) | 321,143) | 270,943) | 215,507) | 216,339) | 187,357) | 146,537) | 122,349) | 122,601) | 105,135) | 98,118) | 91,855) | 97,047) | 92,671) | 88,562) | 72,350) | 64,527) | ||||||
| Total assets | 1,204,832) | 1,129,247) | 1,108,284) | 746,936) | 657,881) | 595,601) | 555,925) | 542,141) | 513,857) | 494,632) | 490,950) | 493,012) | 498,392) | 487,393) | 480,905) | 473,424) | 462,068) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | 0.94 | 0.91 | 0.80 | 1.03 | 1.02 | 0.97 | 0.89 | 0.83 | 0.81 | 0.79 | 0.77 | 0.75 | 0.70 | 0.65 | 0.62 | 0.62 | 0.62 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Procter & Gamble Co. | 0.66 | 0.69 | 0.70 | 0.70 | 0.68 | 0.68 | 0.68 | 0.68 | 0.69 | 0.68 | 0.66 | 0.65 | 0.64 | 0.64 | 0.64 | 0.62 | 0.60 | ||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-K (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-K (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30).
1 Q1 2025 Calculation
Total asset turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Total assets
= (324,477 + 321,143 + 270,943 + 215,507)
÷ 1,204,832 = 0.94
2 Click competitor name to see calculations.
- Net Sales
- Net sales have demonstrated a consistent upward trajectory over the period analyzed, increasing from US$64.5 million in June 2020 to approximately US$324.5 million by June 2024. The growth has been particularly notable since mid-2022, with a marked acceleration in sales, especially in the last few reported quarters. This suggests a strengthening market position or successful sales initiatives during this time frame.
- Total Assets
- Total assets have shown steady growth across the entire period, rising from roughly US$462 million in June 2020 to over US$1.2 billion by June 2024. The asset base expanded steadily through organic growth or acquisition, with a significant jump occurring between September 2023 and December 2023. This rapid increase in assets in late 2023 and early 2024 may indicate capital investments, acquisitions, or other balance sheet expansions aimed at supporting further growth.
- Total Asset Turnover
- The total asset turnover ratio, which measures sales efficiency relative to asset size, improved progressively from 0.62 in June 2020 up to a peak of 1.03 by September 2023. This improvement suggests better utilization of assets to generate sales. However, after this peak, a decline was observed with the ratio decreasing to 0.8 in December 2023 before partially recovering to 0.94 by June 2024. This decline aligns with the significant asset increase in late 2023, indicating that asset growth outpaced sales temporarily, which may reflect strategic investments with a lag before sales impact.
- Summary Insights
- Overall, the financial data reflect a strong sales growth coupled with an expanding asset base. The increasing total asset turnover ratio up to late 2023 indicates improving operational efficiency, although recent asset expansions have caused a temporary dip in this ratio. The trends imply that the company is investing heavily in its asset base to support future growth, which is consistent with its accelerating sales figures. Continued monitoring of the asset turnover ratio will be important to assess if asset utilization efficiency improves as the sales benefits of recent investments materialize.
Equity Turnover
e.l.f. Beauty, Inc., equity turnover calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net sales | 324,477) | 321,143) | 270,943) | 215,507) | 216,339) | 187,357) | 146,537) | 122,349) | 122,601) | 105,135) | 98,118) | 91,855) | 97,047) | 92,671) | 88,562) | 72,350) | 64,527) | ||||||
| Stockholders’ equity | 703,590) | 642,572) | 614,224) | 516,428) | 471,702) | 411,017) | 385,304) | 356,960) | 333,449) | 312,429) | 305,468) | 294,093) | 282,622) | 269,646) | 264,602) | 254,653) | 248,708) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | 1.61 | 1.59 | 1.45 | 1.48 | 1.43 | 1.41 | 1.29 | 1.26 | 1.25 | 1.26 | 1.24 | 1.26 | 1.24 | 1.18 | 1.13 | 1.15 | 1.16 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| Procter & Gamble Co. | 1.62 | 1.67 | 1.68 | 1.73 | 1.75 | 1.75 | 1.79 | 1.81 | 1.83 | 1.72 | 1.75 | 1.76 | 1.67 | 1.64 | 1.61 | 1.54 | 1.50 | ||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-K (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-K (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30).
1 Q1 2025 Calculation
Equity turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Stockholders’ equity
= (324,477 + 321,143 + 270,943 + 215,507)
÷ 703,590 = 1.61
2 Click competitor name to see calculations.
Over the observed periods, net sales have demonstrated a consistent upward trend with periodic fluctuations. Initially, net sales increased moderately from approximately 64.5 million USD in mid-2020 to around 105 million USD by early 2022. Subsequently, there was an accelerated growth phase with net sales surpassing 320 million USD by mid-2024, indicating a strong expansion in revenue generation over the analyzed timeline.
Stockholders’ equity also showed a steady increase throughout the same periods. Beginning at about 249 million USD in mid-2020, equity rose gradually and reached approximately 333 million USD by mid-2022. Thereafter, equity growth intensified, climbing to over 703 million USD by mid-2024. This steady increase reflects cumulative retained earnings, possibly enhanced by capital infusions or improved operational profitability, resulting in a stronger equity base.
The equity turnover ratio, representing the efficiency of generating sales from stockholders’ equity, remained relatively stable in the early phase, fluctuating around 1.13 to 1.26 from mid-2020 to early 2022. From mid-2022 onwards, it exhibited a notable upward trend, rising from 1.29 to 1.61 by mid-2024. This increase suggests improved effectiveness in utilizing equity to produce sales, aligning with the accelerated growth in net sales observed during the same period.
- Net Sales
- Exhibited consistent growth, initially moderate and later accelerating significantly, indicating enhanced market penetration or increased demand.
- Stockholders' Equity
- Demonstrated continuous strengthening, supporting the company’s capacity for growth and indicating accumulated value creation over time.
- Equity Turnover
- Remained stable early on but increased notably in later periods, suggesting improved operational efficiency and better utilization of shareholders’ funds.
In summary, the company’s financial performance over the periods reflects strong growth in sales supported by a robust increase in equity, coupled with improving efficiency in the use of equity to generate revenue. These trends are indicative of a healthy and expanding business with effective capital management strategies.