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

Gross profit margin

The gross profit margin demonstrated a generally upward trend over the observed periods. Starting at approximately 65.11% in mid-2020, it experienced minor fluctuations initially but showed consistent improvement from early 2022 onward. The margin increased steadily, reaching above 70% by mid-2024, indicating enhanced efficiency in production or improved pricing power.

Operating profit margin

The operating profit margin showed notable variability in the early periods, declining sharply from 9.05% in mid-2020 to a low of 2.95% by early 2021. Following this, the margin gradually improved, peaking at 17.26% in late 2023. However, there was a slight decline thereafter, with the margin settling at 12.34% by mid-2024. This pattern suggests initial operational challenges that were gradually addressed, resulting in stronger operational profitability before a moderate recent contraction.

Net profit margin

Net profit margin experienced a similar trajectory to operating margin but with some lag and greater magnitude changes. Starting at 5.46% in mid-2020, it decreased to below 2% by early 2021, reflecting pressure on overall profitability. Thereafter, it steadily increased, reaching a high of nearly 16% by late 2023, indicating effective cost control or increased revenues. A tapering off occurred subsequently, with a decline to 10.8% by mid-2024. Overall, the net margin improvement reflects enhanced bottom-line performance over the period despite some recent softness.

Return on equity (ROE)

ROE showed considerable growth across the time span. Initially relatively low at 6.31% in mid-2020, it trended upward consistently, surpassing 20% by late 2023. This indicates strong proliferation in shareholder value, likely driven by improving net profitability. After peaking around 23.55% in late 2023, ROE experienced a decline, ending at 17.37% by mid-2024, although still at a comparatively robust level.

Return on assets (ROA)

ROA mirrored the improvement in other profitability ratios, starting relatively low at 3.4% in mid-2020, with a slow upward path initially. Significant acceleration occurred from 2021 onward, reaching a peak of over 16% in late 2023. Similar to ROE, ROA diminished slightly in the most recent periods, finishing at approximately 10.15% by mid-2024. The trends suggest increasingly effective asset utilization culminating in notable profitability improvements before a moderate recent decline.

The gross profit and net sales of the company demonstrate a consistent upward trajectory across the analyzed quarters. Both metrics exhibit seasonality but with progressively higher peaks over time, indicating growth in business scale and operational effectiveness.

Gross Profit

Gross profit increased steadily from $43.3 million at mid-2020 to approximately $231.3 million by mid-2024. Despite some fluctuations, the overall trend highlights strong profitability expansion, particularly notable from late 2022 onward with sharp quarter-over-quarter gains.

Net Sales

Net sales followed a similar positive trend, rising from $64.5 million in mid-2020 to around $324.5 million in mid-2024. Growth accelerated significantly after 2022, indicating successful revenue generation and possibly market expansion or increased demand.

Gross Profit Margin

The gross profit margin maintained a relatively stable range around 65% initially, with a gradual and steady increase over the periods. From about 65% in 2020, it climbed to nearly 71% by mid-2024. This improvement in margin suggests enhanced cost efficiency or favorable pricing strategies, contributing to higher profitability relative to revenue.

Overall, the data reflect a robust and improving financial position, characterized by rising sales volumes, expanding profitability, and improving margins. The positive margin trend combined with sales growth implies effective management of both revenue streams and cost controls, positioning the company for continued financial health and scalability.

The financial performance reveals notable fluctuations in operating income, net sales, and operating profit margin over the observed periods. A detailed examination of these trends provides meaningful insights into the company's operational efficiency and growth dynamics.

Operating Income

The operating income exhibited significant volatility throughout the reported quarters. Initially, it started at a moderate level and experienced a decline into negative territory by the first quarter of 2021. This negative operating income phase was short-lived, as the company managed a strong recovery afterward, with substantial increases particularly evident from mid-2022 onwards. Peaks were observed notably in the quarters ending June 2023 and June 2024, indicating periods of robust operational profitability. Despite some intermittent declines, the overall trajectory of operating income over the full span is upward, underlining enhanced operational performance.

Net Sales

Net sales demonstrated a consistent and steady growth pattern across the entire timeframe. Beginning at slightly above US$64 million, sales increased each quarter with marginal fluctuations, reaching over US$324 million by the last reported period. This persistent rise in revenue underscores the company's expanding market presence and suggests successful sales strategies or product acceptance in the market.

Operating Profit Margin

The operating profit margin, expressed as a percentage, shows improvement over the period, signaling better cost control and increased profitability relative to sales. Starting at around 9.05%, the margin initially declined but then commenced a sustained upward trend beginning in late 2020. By mid-2023, the margin peaked near 17.26%, indicating highly efficient operations. Though there was a slight decrease following that peak, margins remained elevated relative to the earlier periods. The gradual increase in margin highlights effective management of operating expenses in relation to rising revenues.

In summary, the data reflects a company transitioning from periods of operational challenges into phases of enhanced profitability and sales growth. The upward trends in net sales and operating profit margins, coupled with recovering and increasing operating income, suggest strengthened operational performance and effective cost management. These trends indicate a positive outlook with continued focus required to sustain profitability in the face of market or cost pressures.

The financial data reflects notable fluctuations and general growth trends across the analyzed periods. Net sales show a consistent upward trajectory, increasing from approximately $64.5 million in the second quarter of 2020 to over $324 million by the second quarter of 2024. This growth suggests expanding market penetration or increased demand over the four-year span.

Net income exhibits considerable volatility with periods of both substantial gains and declines. Initial quarters display moderate income figures, with a marked dip in the first quarter of 2021 resulting in a slight negative value. Following this, net income recovers and grows, reaching peaks such as $52.9 million in the second quarter of 2023 and $47.5 million by the second quarter of 2024. The variability indicates episodes of fluctuating profitability, possibly linked with operational adjustments or external market factors.

The net profit margin demonstrates a generally positive and strengthening trend, starting from around 5.46% in mid-2020, briefly declining below 2% during late 2020 and early 2021, then progressively increasing and peaking near 15.88% in the third quarter of 2023. The margin slightly declines thereafter but remains robust above 10% through the first half of 2024. This pattern reflects improvements in profitability relative to sales, potentially due to better cost management or enhanced pricing power.

Net Sales

Show steady and significant growth over the period, nearly quintupling from mid-2020 to mid-2024, indicative of strong revenue expansion.

Net Income

Characterized by volatility, including periods of negative or minimal income; however, the overall trend is upward with substantial peaks in 2023 and 2024.

Net Profit Margin

Though initially low and variable, the margin improves substantially after 2021, reaching double-digit percentages indicating enhanced profitability efficiency.

In summary, the data highlights a robust increase in sales accompanied by fluctuating yet ultimately increasing profitability, with net profit margins reflecting improved operational performance and cost controls in recent years.

Net Income Trend

The net income exhibits considerable volatility over the analyzed periods. Initial quarters show lower and fluctuating net income values, including a negative figure in March 2021. Subsequently, there is a general upward trajectory with notable peaks in June 2022 and beyond. The highest net income is observed in June 2023, followed by a decline and then another rise by June 2024. This pattern indicates periods of significant earnings growth interspersed with fluctuations.

Stockholders’ Equity Trend

Stockholders' equity shows a consistent upward trend throughout the entire period. Starting from approximately 249 million USD, it steadily increases each quarter, reaching over 703 million USD by June 2024. This steady growth reflects ongoing retention of earnings and/or equity financing, contributing to a strengthening capital base.

Return on Equity (ROE) Trend

The ROE percentage demonstrates an overall improving trend across the covered periods. Early quarters show modest returns around 2-6%. From mid-2021 onward, there is a marked increase in ROE, peaking at over 23% in September 2023. The ratio slightly declines after this point but remains elevated relative to the earlier years, indicating enhanced efficiency in generating profits from equity.

Summary of Financial Performance

The data reveals a company transitioning from modest and somewhat inconsistent profitability to stronger, more sustainable earnings generation capabilities. The steady increase in stockholders’ equity coupled with rising ROE suggests improved operational performance and capital utilization. Despite some fluctuations in net income, the general upward momentum in profitability metrics points to a strengthening financial position over the observed periods.

Net Income Trends

The net income exhibits significant volatility over the observed periods. Initial quarters show fluctuations with values ranging from negative figures to moderate gains, notably a loss recorded in March 2021. From mid-2021 onward, there is an overall upward trajectory, with periodic peaks such as June 2022 and December 2022, reaching notably high levels in June and September 2023. Although some periods indicate declines following peaks, the most recent data points in early 2024 demonstrate a rebound to elevated net income levels, suggesting resilience and potential growth momentum.

Total Assets Movement

Total assets display a consistent upward trend throughout the timeframe. Beginning at a base over 460 million USD, total assets steadily increase each quarter, with occasional smaller increments or plateaus. The growth accelerates notably in the final quarters, surpassing 1.2 billion USD by mid-2024. This upward movement indicates expansion in asset base, which may correspond to investments, acquisitions, or organic asset growth over the period.

Return on Assets (ROA) Patterns

ROA shows a clear increasing pattern, starting from 3.4% in mid-2020, dipping slightly in late 2020 before gradually improving. From early 2021 onward, the ratio strengthens significantly, peaking close to 16.28% in September 2023. Although a mild decline is noted in the most recent quarters, the ROA remains elevated above 10%, reflecting enhanced profitability relative to the asset base over the years.

Overall Insights

The financial indicators collectively reveal a company experiencing growth in both asset holdings and profitability efficiency. The increase in total assets coupled with rising ROA suggests efficient utilization of assets to generate earnings. The net income fluctuations highlight periods of operational instability or external impacts but exhibit a positive recovery trend toward the end of the series. The sustained growth in ROA beyond 10% in recent quarters could imply improved cost management, revenue growth, or strategic effectiveness.