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), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30).
The analysis of the quarterly financial ratios over the periods presented reveals several distinct trends and insights across net fixed asset turnover, total asset turnover, and equity turnover.
- Net Fixed Asset Turnover
- This ratio, available from March 31, 2020, onwards, demonstrates a strong upward trajectory throughout the timeline. Beginning at 16.47, it showed steady increases quarter over quarter, reaching a peak of 100.44 by September 30, 2023. Although there was a noticeable decline following this peak to 69.52 on December 31, 2023, it recovered somewhat in subsequent quarters, ending at 80.63 by June 30, 2024. This indicates significantly improved efficiency in using fixed assets to generate sales, with some volatility in the most recent quarters.
- Total Asset Turnover
- The total asset turnover exhibits a gradual but consistent improvement from 0.62 at the start of the observed period to 1.03 on December 31, 2023. However, it experienced a decline to 0.80 on March 31, 2024, followed by a modest rebound to 0.94 by June 30, 2024. This metric indicates increased effectiveness in overall asset utilization for revenue generation, although the recent fluctuations suggest some variability in asset productivity.
- Equity Turnover
- The equity turnover ratio has shown a steady upward trend from 1.17 to 1.61 by the end of the period. The growth appears consistent, with incremental increases each quarter, signaling an improved ability to generate sales relative to shareholders’ equity. Despite minor adjustments, no significant reversals in trend are observed, highlighting sustained improvement in leveraging equity for revenue.
Overall, the period from early 2020 through mid-2024 reflects enhanced operational efficiency and asset utilization. Net fixed asset turnover experienced the most pronounced growth, pointing to an increased focus or success in utilizing fixed assets effectively. Total asset turnover and equity turnover improved consistently but with some short-term fluctuations in the most recent quarters, possibly indicating external factors or strategic changes impacting asset and equity efficiency. The general dynamics suggest progressive strengthening of the company’s operational leverage and resource utilization over the observed timeframe.
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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 74,712) | 80,760) | 67,615) | 59,764) | |||||||
| 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) | 17,171) | 16,487) | 16,059) | 16,493) | |||||||
| 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 | 16.47 | — | — | — | |||||||
| 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 | 3.43 | 3.44 | 3.28 | 3.29 | |||||||
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), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30).
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.
The analysis of the quarterly financial data reveals several noteworthy trends in sales, asset management, and efficiency over the observed periods.
- Net Sales
- The net sales exhibit a clear upward trajectory from June 2019 through June 2024. Beginning at approximately $59.8 million in the second quarter of 2019, sales increased with some fluctuations to reach around $324.5 million by the second quarter of 2024. Notable increases are observed particularly from 2022 onward, with a significant jump between March and June 2023 and continued growth into 2024. This suggests strong revenue expansion and possibly successful market penetration or product demand increases during these years.
- Property and Equipment, Net
- Contrasting with sales growth, the net value of property and equipment shows a gradual decline over the same period. Starting from about $16.5 million in mid-2019, the asset base decreased steadily to approximately $14.0 million by mid-2024 after dipping further in intermediate quarters, reaching lows around $7.6 million to $8.7 million between 2022 and early 2023. This decline may indicate asset disposals, depreciation outpacing investments, or a strategic reduction in fixed assets.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures revenue generated per dollar of fixed assets, displays a markedly positive trend over the available data range. Beginning at 16.47 in the first quarter of 2020, it rises steadily with minor fluctuations, reaching exceptionally high levels of approximately 80.6 by the second quarter of 2024. This increasing ratio indicates improving efficiency in asset utilization, whereby the company is generating significantly more sales revenue per unit of fixed assets held. This trend aligns with the observed decline in fixed assets and sustained growth in net sales, pointing to enhanced operational efficiency or shifts towards less capital-intensive activities.
Total Asset Turnover
e.l.f. Beauty, Inc., total asset turnover calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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) | 74,712) | 80,760) | 67,615) | 59,764) | |||||||
| 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) | 453,104) | 456,251) | 437,027) | 435,981) | |||||||
| 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 | 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 | 0.59 | 0.59 | 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), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30).
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.
The data indicates that net sales have exhibited a general upward trajectory from June 2019 to June 2024. Starting at approximately $59.8 million in mid-2019, net sales increased steadily, displaying more pronounced growth from mid-2021 onwards, culminating at about $324.5 million by mid-2024. This trend suggests a robust expansion in revenue generation over the observed periods with some fluctuations, particularly around early 2020 which could be associated with external economic factors.
Total assets have also demonstrated a consistent increase during the same timeframe. Beginning slightly above $435 million in June 2019, total assets gradually rose to just over $1.2 billion by mid-2024. The growth in total assets generally parallels the increase in net sales, indicating the company has been scaling its asset base in support of its expanding operations. There are no significant declines recorded, showing stable asset growth.
Total asset turnover ratios were available starting from March 2020 and reveal a positive trend in the efficiency of asset use. Initially stable at around 0.62, the ratio improved incrementally to peak near 1.03 in December 2023, reflecting enhanced efficiency in generating sales from asset investments. After this peak, the ratio experienced a dip to 0.80 in the subsequent quarter but rebounded to 0.94 by mid-2024. These fluctuations suggest some variability in how effectively the company utilized its assets in the most recent periods, though the overall trend indicates improved asset turnover efficiency.
In summary, the data over the five-year span displays sustained growth in both net sales and total assets, accompanied by an improving trend in asset utilization efficiency. This pattern reflects a company that has been expanding its operational scale while concurrently enhancing the return generated per unit of asset employed, with minor short-term deviations likely influenced by market conditions or strategic adjustments.
Equity Turnover
e.l.f. Beauty, Inc., equity turnover calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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) | 74,712) | 80,760) | 67,615) | 59,764) | |||||||
| 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) | 242,171) | 242,447) | 231,688) | 222,008) | |||||||
| 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 | 1.17 | — | — | — | |||||||
| 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 | 1.53 | 1.54 | 1.53 | 1.48 | |||||||
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), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30).
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.
The analysis of the financial data reveals several notable trends in key performance indicators over the measured periods.
- Net Sales
- Net sales demonstrate a clear upward trajectory from June 2019 through June 2024. Starting at approximately $59.8 million in mid-2019, net sales generally increase with some fluctuations, peaking significantly at around $324.5 million by mid-2024. There is a notable acceleration in growth beginning in early 2022, with sales surpassing $300 million in the latest periods, indicating strong demand and market expansion.
- Stockholders’ Equity
- Stockholders’ equity also shows consistent growth throughout the period. Beginning at about $222 million in June 2019, equity rises steadily, reaching approximately $703.6 million by June 2024. This increase reflects retained earnings accumulation, capital injections, or revaluation, suggesting improved financial strength and possibly a more robust capital base supporting the company’s growth.
- Equity Turnover
- Equity turnover, a ratio indicating the efficiency of equity in generating sales, remains relatively stable in the early periods with values around 1.15 to 1.17 prior to 2020. From that point onward, it displays a gradual improvement, increasing steadily to about 1.61 by June 2024. This rise suggests enhanced efficiency in utilizing equity to drive sales, reflecting operational improvements or better asset management.
Overall, the data highlights a positive performance trend characterized by growing sales and increasing equity, accompanied by improved efficiency in equity usage. These patterns imply a strengthening financial position and expanding business operations over the evaluated timeframe.