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

The data reveals a significant evolution in the composition and valuation of intangible assets over the five-year period.

Customer Relationships

Customer relationships with retailers remain stable at $77.6 million from 2020 through 2023, followed by a notable increase to $97.6 million in 2024.

Customer relationships associated with e-commerce show no change at $3.94 million between 2020 and 2023, then surge substantially to $21.54 million in 2024, indicating a strategic emphasis or successful expansion in the e-commerce segment.

Trademarks

The gross carrying amount reported for trademarks displays a dramatic increase from $3.5 million consistently across 2020 to 2023 to $128 million in 2024, suggesting either a major acquisition or revaluation.

The indefinite-lived trademarks remain constant at $63.8 million through the entire period, showing no impairment or additions, which implies sustained brand value without re-assessment.

Finite-Lived Intangibles

The gross carrying amount of finite-lived intangibles is stable at $85.04 million from 2020 to 2023, then rises sharply to $247.14 million in 2024.

Accumulated amortization on these intangibles increases steadily each year, reflecting ongoing amortization expenses, moving from -$46.43 million in 2020 to -$85.85 million in 2024.

Net carrying amount of finite-lived intangibles declines steadily from $38.61 million in 2020 to $14.24 million in 2023, before increasing substantially to $161.29 million in 2024, likely due to the addition of significant intangible assets outweighing amortization.

Other Intangible Assets

This category consistently decreases from $102.41 million in 2020 to $78.04 million in 2023, followed by a noticeable increase to $225.09 million in 2024, indicating asset additions or reclassification in the final year.

Goodwill and Related Assets

Goodwill remains relatively stable around $171.3 million to $171.6 million between 2020 and 2023, then nearly doubles to $340.6 million in 2024, signaling a major acquisition or goodwill recognition during that period.

The total of goodwill and other intangible assets follows a declining trend from $273.73 million in 2020 to $249.66 million in 2023, before spiking sharply to $565.69 million in 2024, consistent with the observed increases in the other intangible asset categories.

Overall, the data depicts a pattern of stability in intangible assets from 2020 through 2023, followed by significant increases in 2024 across multiple categories, especially trademarks, finite-lived intangibles, customer relationships, and goodwill. This suggests a pivotal event or strategic acquisitions occurred in 2024, greatly enhancing the intangible asset base. Additionally, the sustained amortization trend in finite-lived assets reflects ongoing expense recognition, tempered by the asset additions in the latest year.

The financial data indicates substantial growth in both total assets and stockholders’ equity over the examined five-year period. This trend is evident in both the reported and the goodwill adjusted figures.

Total Assets

The reported total assets increased steadily from approximately $453.1 million in 2020 to $1.13 billion in 2024, more than doubling in size. The adjusted total assets, which exclude goodwill, also display significant growth, rising from around $281.8 million in 2020 to $788.6 million in 2024. The gap between reported and adjusted assets widens over time, reflecting an increase in recorded goodwill or intangible assets.

Stockholders’ Equity

Reported stockholders’ equity rose consistently from about $242.2 million in 2020 to $642.6 million in 2024. A more pronounced growth is observable in adjusted stockholders’ equity figures, which climb from $70.9 million in 2020 to $302.0 million in 2024. This upward trajectory in adjusted equity suggests strengthening underlying equity position after removing goodwill effects, which can often be more volatile or subject to impairment.

Comparative Insights

The difference between reported and adjusted values for both assets and equity is notable, indicating a large and growing adjustment related to goodwill. The adjusted figures portray a more conservative accounting view, emphasizing tangible asset growth and real equity buildup. Both sets of figures, however, clearly show expanding financial strength and asset base, which may support future growth or investment capacity.

The analysis of the financial ratios over the five-year period reveals distinct trends in asset efficiency, leverage, and profitability measures, both on a reported basis and when adjusted for goodwill.

Total Asset Turnover

The reported total asset turnover ratio steadily increased from 0.62 in 2020 to a peak of 0.97 in 2023, before a slight decline to 0.91 in 2024. The adjusted total asset turnover figures, which exclude goodwill effects, show a similar but consistently higher trend, rising from 1.00 in 2020 to 1.37 in 2023, then tapering off modestly to 1.30 in 2024. This indicates an overall improvement in the company’s efficiency in utilizing its assets to generate sales, particularly after adjustments for non-operating assets.

Financial Leverage

Reported financial leverage exhibited a declining trend from 1.87 in 2020 to a low of 1.45 in 2023, before reversing and climbing back to 1.76 in 2024. The adjusted financial leverage, which accounts for goodwill adjustments, decreased more sharply from 3.98 in 2020 to 1.77 in 2023, then increased to 2.61 in 2024. This pattern suggests that the company significantly reduced its reliance on debt or leveraged financing over the first four years, but partially reversed this trend in the last year. The adjustments reveal that the underlying financing structure is more leveraged than the reported figures initially suggest.

Return on Equity (ROE)

The reported ROE showed volatility, starting at 7.38% in 2020, dipping sharply to 2.31% in 2021, and then increasing substantially to 19.87% by 2024. Adjusted ROE followed a similar pattern but at higher levels, beginning at 25.24% in 2020, declining to 6.36% in 2021, and climbing to an impressive 42.28% in 2024. This suggests that when goodwill is excluded, the company’s ability to generate profits from shareholders' equity is considerably stronger, and the recent improvements reflect enhanced profitability and possibly more efficient equity utilization.

Return on Assets (ROA)

Reported ROA mirrored the trend in ROE but on a lower scale, declining from 3.95% in 2020 to 1.28% in 2021, before rising to 11.31% in 2024. The adjusted ROA figures were higher at each point, decreasing from 6.35% to 1.97% between 2020 and 2021, then increasing to 16.19% in 2024. These adjusted figures suggest an improvement in the company’s ability to generate income from its assets, indicating better operational efficiency especially in the most recent years.

Overall, the data show that both reported and goodwill-adjusted metrics point to a period of declining profitability and efficiency in 2021, followed by a strong recovery through 2024. Adjustments for goodwill significantly amplify asset turnover and profitability ratios, highlighting the importance of excluding intangible assets for a more accurate measure of operational performance. The financial leverage trends imply a strategic shift towards lower leverage up to 2023, with a modest increase thereafter, which may have supported the improved returns observed in the final period analyzed.

The data reveals notable trends in both reported and goodwill adjusted financial metrics over the five-year period ending March 31, 2024. Total assets under both reported and adjusted bases have grown significantly, with reported total assets more than doubling, increasing from approximately US$453 million to about US$1.13 billion. Adjusted total assets, which exclude goodwill, also show substantial growth, nearly tripling from around US$282 million to about US$789 million over the same period. This indicates an expansion in the asset base, with a marked increase in non-goodwill assets.

Examining asset turnover ratios highlights improving efficiency in asset utilization. The reported total asset turnover, which measures revenue generated per dollar of total assets, shows a steady increase from 0.62 in 2020 to a peak of 0.97 in 2023, before a slight decrease to 0.91 in 2024. This suggests the company became more effective in generating sales from its asset base until 2023, with a minor decline in the latest year.

The adjusted total asset turnover, reflecting revenue generation relative to tangible assets excluding goodwill, exhibits a consistently higher and rising trend compared to the reported figure. It starts at 1.00 in 2020 and climbs steadily to 1.37 in 2023 before a slight drop to 1.30 in 2024. The higher ratios in adjusted figures compared to reported ones suggest that the underlying assets excluding goodwill are being leveraged more efficiently.

Overall, the growth in total assets combined with increasing asset turnover ratios implies the company has been expanding its asset base while simultaneously improving the efficiency of asset utilization, particularly when goodwill is excluded. The small declines in turnover metrics in the last year may warrant closer monitoring to assess whether they represent a temporary fluctuation or the beginning of a changing trend in asset efficiency.

The data reveals notable trends in the financial position over the five-year period ending March 31, 2024. Both reported and goodwill-adjusted total assets have increased substantially, with reported total assets more than doubling from US$453.1 million in 2020 to approximately US$1.13 billion by 2024. Similarly, adjusted total assets followed an upward trajectory, rising from US$281.8 million to about US$788.6 million, indicating consistent asset growth even after accounting for goodwill adjustments.

Stockholders’ equity has demonstrated strong growth as well. Reported equity expanded from US$242.2 million in 2020 to US$642.6 million in 2024, reflecting increased shareholder value and retained earnings. Adjusted equity, which excludes goodwill, showed an even sharper rise—from US$70.9 million to US$302.0 million—highlighting significant improvement in the company's net tangible equity base during this timeframe.

Financial leverage ratios illustrate a declining trend initially followed by a mild increase towards the end of the period. The reported financial leverage ratio decreased from 1.87 in 2020 to a low of 1.45 in 2023, suggesting a decreasing reliance on debt relative to equity in those years; however, it then rose to 1.76 in 2024, indicating a moderate increase in financial leverage. In contrast, adjusted financial leverage started high at 3.98 in 2020 and showed a more pronounced downward trend to 1.77 in 2023, implying a reduction in leverage when excluding goodwill. This ratio subsequently increased to 2.61 in 2024, signaling somewhat increased leverage but still at a lower level than earlier years.

Overall, the patterns indicate sustained asset and equity growth alongside a gradual deleveraging trend that experienced a partial reversal in the most recent year. The adjusted measures, excluding goodwill, portray a more conservative leverage profile, emphasizing improved financial stability in tangible terms. The uptick in leverage ratios in 2024 warrants attention as it may reflect strategic financing decisions or changes in capital structure risk.

Total Assets

Reported assets increased significantly, more than doubling over the five years.

Adjusted total assets also rose markedly, indicating real asset growth exclusive of goodwill.

Stockholders’ Equity

Reported equity grew steadily, enhancing shareholder value.

Adjusted equity showed even stronger growth, reflecting increased net tangible assets.

Financial Leverage

Reported leverage decreased from 1.87 to 1.45 by 2023, then rose to 1.76 in 2024.

Adjusted leverage declined more sharply from 3.98 to 1.77 before increasing to 2.61 in 2024.

The overall leverage trend suggests initial deleveraging followed by moderate re-leveraging in the last year.

The analysis of the financial data over the five-year period reveals several notable trends in both reported and goodwill adjusted equity measures and return on equity (ROE) metrics.

Stockholders’ Equity

The reported stockholders’ equity shows a consistent upward trajectory, increasing from approximately $242 million in 2020 to $643 million in 2024. This reflects a substantial growth in the company’s net assets over the timeframe.

Adjusted stockholders’ equity, which excludes goodwill effects, similarly exhibits growth but at a different scale, rising from about $71 million in 2020 to nearly $302 million in 2024. The gap between reported and adjusted values suggests a significant amount of goodwill on the balance sheet that remains relatively stable but influences overall equity figures.

Return on Equity (ROE)

Reported ROE experienced some volatility, starting at 7.38% in 2020, dipping sharply to 2.31% in 2021, and then rising steadily to reach 19.87% in 2024. This pattern indicates initial challenges followed by improved profitability relative to reported equity.

Adjusted ROE, which offers a perspective excluding goodwill effects on equity, follows a similar but more pronounced trend. Starting strong at 25.24% in 2020, it also falls in 2021 to 6.36%, then climbs significantly to 42.28% by 2024. This higher adjusted ROE implies that core business profitability, when measured against tangible equity, is more robust and demonstrates notable efficiency gains in recent years.

Insights

The divergence between reported and adjusted figures highlights the impact of goodwill on financial ratios and equity valuation. The growing adjusted equity base and the rising adjusted ROE suggest enhanced operational performance and better capital utilization excluding intangible assets.

The sharp improvements in ROE metrics from 2021 onwards indicate a possible turnaround or growth phase, reflecting increasing profitability and shareholder value creation over the most recent years.

The financial data for the periods ending March 31 from 2020 through 2024 displays notable developments in total assets and return on assets (ROA) both in reported and goodwill adjusted terms.

Total Assets

The reported total assets have shown a consistent upward trend over the analyzed periods. Starting at approximately $453.1 million in 2020, assets increased gradually through 2022, followed by a more pronounced rise to nearly $595.6 million in 2023. This escalation accelerated significantly in 2024, with assets reaching approximately $1.13 billion, thus more than doubling from the previous year.

Adjusted total assets, which exclude goodwill, similarly increased over the years but at a lower level compared to reported assets. Beginning at about $281.8 million in 2020, adjusted assets rose steadily to around $324.0 million by 2022. A notable jump occurred in 2023 to approximately $424.0 million, followed by a marked surge in 2024 to nearly $789 million. This pattern indicates substantial growth in core asset values when goodwill is excluded, especially in the last two years.

Return on Assets (ROA)

The reported ROA percentage fluctuated initially but showed clear improvement over the entire period. It started at 3.95% in 2020 but declined to 1.28% in 2021, suggesting reduced efficiency or profitability that year. From 2022 onwards, the ROA increased substantially, reaching 4.4% in 2022, escalating further to 10.33% in 2023, and then to 11.31% in 2024. This upward trajectory points to enhanced asset utilization and improved profitability.

Adjusted ROA, excluding the impact of goodwill, follows a similar trend but at higher rates compared to reported ROA. Beginning at 6.35% in 2020, it decreased to 1.97% in 2021. Then, a significant recovery and growth phase appears, with ROA rising to 6.74% in 2022, surging to 14.51% in 2023, and further to 16.19% in 2024. The higher levels of adjusted ROA suggest that the company’s core assets are generating stronger returns when the intangible goodwill component is removed, with notable gains in asset profitability especially in the recent years.

Overall, the data reveals a pattern of strong asset growth and improving profitability, particularly in the last two years. The accelerated increase in total assets alongside rising adjusted ROA underscores a strengthening operational performance and more efficient asset management when goodwill is excluded from the calculations.