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

Gross Profit Margin

The gross profit margin exhibits a generally upward trend from 64.03% in March 2020 to 70.91% in June 2024. Minor fluctuations are observed, but the overall trajectory indicates a consistent improvement in profitability at the gross level, peaking above 70% in the most recent quarters.

Operating Profit Margin

The operating profit margin initially declines from 10.59% in March 2020 to a low of 2.95% in June 2021, suggesting increasing operating costs or other pressures. However, from that point onward, it demonstrates a robust recovery, reaching a peak of 17.26% in September 2023 before slightly declining to 12.34% by June 2024. This pattern indicates enhanced operational efficiency or improved cost management in the later periods.

Net Profit Margin

The net profit margin follows a similar trend to the operating margin, falling from 6.32% in March 2020 to approximately 1.96% in June 2021, then steadily increasing to an apparent high of 15.88% in September 2023 before easing to 10.8% in June 2024. This suggests improvements in overall profitability, including after-tax earnings, with some recent moderation.

Return on Equity (ROE)

ROE shows a pronounced upward trajectory beginning at 7.38% in March 2020, declining slightly through June 2021, then strongly increasing to a peak of 23.55% in September 2023 before decreasing to 17.37% by June 2024. This indicates effective utilization of shareholder equity over time with peak efficiency in late 2023, albeit with some recent decreases.

Return on Assets (ROA)

ROA mirrors the other profitability ratios, starting at 3.95% in March 2020, dipping slightly until mid-2021, then climbing significantly to 16.28% in September 2023. Subsequently, it declines to 10.15% in June 2024, indicating enhanced asset use efficiency over the majority of the period but diminished returns more recently.

Summary of Trends

The financial data reveals an initial phase of performance challenges reflected in declining margins and returns until mid-2021. Following this, there is marked improvement across all key profitability and efficiency metrics, peaking predominantly in the third quarter of 2023. The latter part of the period shows some signs of easing profitability and returns, though still maintaining levels higher than those seen in early 2020. Overall, the trends point toward stronger cost control, improved operational efficiency, and more effective capital utilization over the analyzed timeframe.

The financial data reveals several notable trends in key performance metrics over the periods analyzed.

Net Sales

Net sales experienced overall growth, rising from $59,764 thousand in June 2019 to $324,477 thousand by June 2024. This indicates a strong upward trajectory in revenue generation. Fluctuations occurred quarterly, with occasional declines such as between December 2019 and June 2020, likely reflecting external market conditions. However, from mid-2020 onward, growth resumed and accelerated markedly, particularly after March 2022.

Gross Profit

Gross profit followed a similar upward trend, increasing from $37,191 thousand in June 2019 to $231,283 thousand in June 2024. The growth pace intensified in the later periods, notably from June 2022 onwards, with a substantial rise noted in the first half of 2023. The progression in gross profit closely tracked the expansion in net sales, signaling effective cost management or improved product mix contributing to profitability.

Gross Profit Margin

The gross profit margin, available from March 2020 forward, demonstrates a consistent improvement, starting at 64.03% and advancing steadily to 70.91% by June 2024. This margin enhancement suggests strengthening operational efficiency or increased pricing power, leading to higher profitability on sales over time.

Overall, the data reflects a robust growth pattern in sales and profitability metrics, coupled with improving margins. The company is displaying an ability to scale revenues while enhancing cost efficiency, resulting in progressively higher gross profit percentages. The continuous margin improvement is particularly indicative of favorable business dynamics and potentially enhanced competitive positioning in the period analyzed.

The financial performance over the reported quarters reveals several notable trends in both operating income and net sales, alongside the operating profit margin.

Operating Income

Operating income shows fluctuations throughout the periods with significant variability. Initial quarters in 2019 demonstrate moderate positive figures, peaking at 12,880 thousand US dollars in December 2019, followed by a sharp decline in March 2020 to just 1,040 thousand US dollars, coinciding with the onset of the global pandemic. The subsequent quarters show a recovery with oscillations, including a negative value of -1,868 thousand US dollars in March 2021. From mid-2021 onwards, operating income generally rises, reaching a notable peak of 60,633 thousand US dollars in June 2023, before dipping slightly in subsequent quarters but maintaining relatively high levels through mid-2024.

Net Sales

Net sales exhibit a consistent upward trend across the periods. Beginning at approximately 59,764 thousand US dollars in mid-2019, net sales show steady growth, occasionally experiencing minor declines or plateaus around 2020 but resuming strong growth thereafter. The most substantial increases occur from 2021, culminating in sales surpassing 324,477 thousand US dollars by mid-2024. This indicates robust revenue expansion over the five-year span.

Operating Profit Margin

The operating profit margin data is sparse for the earliest periods but is consistently positive from around mid-2020 onward. Margins started at 10.59% in June 2020, followed by a general downward trend reaching a low of 2.95% in March 2021. After this point, the margin shows a recovery trend, increasing steadily and peaking at 17.26% in September 2023. However, a slight decrease is observed thereafter, ending at 12.34% in June 2024. This suggests improving operational efficiency over time, with margins reflecting the company’s growing profitability despite some volatility.

Overall, the data indicates that while operating income and profit margins experienced volatility in the earlier periods—likely influenced by external factors such as market conditions and global events—the company achieved sustained growth in both revenue and profitability in the medium to long term. The upward trajectory in net sales and improving profit margins in recent quarters highlight a strengthening financial position.

Net Income

Net income exhibits notable volatility across the reported periods. Initially, it increased steadily from 3,706 thousand USD in June 2019 to a peak of 8,002 thousand USD in December 2019, before sharply declining to a negative value of -341 thousand USD in March 2020. This drop coincides with the early stages of the COVID-19 pandemic. Following this trough, net income showed recovery with fluctuations, reaching new highs in recent periods such as 52,977 thousand USD in June 2023, followed by a decrease to 14,527 thousand USD in March 2024, then rebounding again to 47,555 thousand USD by June 2024. The pattern reveals cyclical variability with strong growth spurts in late 2022 through mid-2023 and early 2024.

Net Sales

Net sales demonstrate a consistent upward trend over the entire timeline. Beginning with 59,764 thousand USD in June 2019, net sales increased steadily with only minor fluctuations, reaching 146,537 thousand USD in December 2022. A sharp surge is observed starting in March 2023, accelerating from 187,357 thousand USD to a peak of 324,477 thousand USD by June 2024. This indicates robust sales growth, particularly in the most recent year, highlighting expanding market demand or successful sales strategies implemented during this period.

Net Profit Margin

The net profit margin was not reported in the earliest quarters but shows a positive upward trajectory starting in March 2020 at 6.32%. The margin declines moderately in the subsequent two quarters to 3.29% by December 2020, possibly reflecting operational or cost pressures during that time. Thereafter, it steadily improves through 2021 and 2022, rising from 3.71% to nearly 7.57%. The margin accelerates in 2023, reaching a peak of 15.88% in September 2023, demonstrating enhanced profitability. By June 2024, the margin slightly declines to 10.8%, but it remains significantly higher than earlier years, suggesting improved cost management or higher operational efficiency in recent periods.

The net income figures demonstrate considerable volatility across the reported periods. Initially, there is a positive trend from June 2019 through December 2019, with net income increasing from approximately 3.7 million USD to 8.0 million USD. However, a sharp decline occurs in the first quarter of 2020 with a net loss of approximately 0.3 million USD, followed by fluctuating smaller gains and losses until mid-2021. From June 2021 onwards, net income shows a notable upward trajectory, peaking significantly at nearly 53.0 million USD in June 2023. Towards the end of the period, net income remains strong but with some decline, ending at approximately 47.6 million USD in June 2024.

Stockholders’ equity exhibits a consistent growth pattern over the entire timeframe. Starting at about 222 million USD in June 2019, equity gradually increases with no observed declines, reaching approximately 704 million USD by June 2024. The steady augmentation of equity reflects ongoing capital retention or accumulation, suggesting solid underlying financial health and potentially effective reinvestment of earnings.

The Return on Equity (ROE) percentage data are partially available beginning in the first quarter of 2020. The initial values show relatively low returns, fluctuating between roughly 2.2% and 7.4%. From mid-2021, ROE experiences a progressive and sharp increase, reaching a peak of about 23.6% in September 2023. Subsequent quarters show a slight decrease but remain elevated above 17%. This rising trend in ROE indicates increasingly efficient use of equity to generate profits, aligning with the growth in net income and stockholders’ equity observed in the same periods.

Net Income

Shows high volatility with initial growth, a sharp dip during early 2020, and strong recovery resulting in substantial gains through mid-2023 into 2024.

Stockholders’ Equity

Demonstrates steady and continuous growth throughout all periods, reflecting capital accumulation.

Return on Equity (ROE)

Starts low and fluctuating at around 2-7%, followed by sustained and marked improvement from mid-2021 onward, peaking in late 2023, with slight decline thereafter yet maintaining a high level.

Net Income

The net income exhibits notable fluctuations over the presented periods. There is an initial positive trend from June 2019 through December 2019, reaching a peak of 8,002 thousand USD. This is followed by a sharp decline in the first quarter of 2020 with a net loss of 341 thousand USD, likely reflecting external challenges impacting the business. Subsequently, net income fluctuates moderately until a significant upward trend emerges starting in the fourth quarter of 2021, reaching a record high of 52,977 thousand USD in June 2023. Despite some variability thereafter, net income remains elevated relative to earlier periods, indicating strong profitability gains in recent quarters.

Total Assets

Total assets show a consistent and continuous growth trajectory throughout the timeline. Beginning at approximately 436 million USD in June 2019, assets steadily increase each quarter, surpassing 1.2 billion USD by June 2024. This trend suggests successful expansion or accumulation of assets, which could be associated with investments, acquisitions, or organic growth supporting the company's operations and capacity.

Return on Assets (ROA)

The return on assets exhibits a progressive upward trend with some variability noted in the early quarters. Starting from a low base near or below zero at the beginning of the series, ROA improves to above 3% by mid-2020 and continues to strengthen steadily thereafter. The highest recorded ROA reaches over 16% in late 2023, followed by a slight decline to approximately 10% in mid-2024. This pattern reflects increasing efficiency in generating profit from the asset base, with recent years showing a marked improvement in operational effectiveness.

Summary of Trends

Taken together, the data indicate a period of initial volatility followed by sustained improvement in profitability and asset utilization. The substantial growth in total assets aligns with enhanced returns and increasing net income, suggesting successful scaling of operations. The fluctuations in net income, especially around early 2020, point to potential external disruptions, but the strong recovery and continued growth afterward underline robust financial management and positive business momentum.