Stock Analysis on Net
Stock Analysis on Net

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

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

e.l.f. Beauty, Inc., balance sheet: goodwill and intangible assets

US$ in thousands

Microsoft Excel
Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Customer relationships, retailers 97,600 77,600 77,600 77,600 77,600
Customer relationships, e-commerce 21,540 3,940 3,940 3,940 3,940
Trademarks 128,000 3,500 3,500 3,500 3,500
Finite-lived intangibles, gross carrying amount 247,140 85,040 85,040 85,040 85,040
Accumulated amortization (85,846) (70,799) (62,677) (54,554) (46,430)
Finite-lived intangibles, net carrying amount 161,294 14,241 22,363 30,486 38,610
Trademarks 63,800 63,800 63,800 63,800 63,800
Indefinite-lived intangibles 63,800 63,800 63,800 63,800 63,800
Other intangible assets 225,094 78,041 86,163 94,286 102,410
Goodwill 340,600 171,620 171,620 171,620 171,321
Goodwill and other intangibles 565,694 249,661 257,783 265,906 273,731

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

Item Description The company
Other intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. e.l.f. Beauty, Inc. other intangible assets decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Goodwill and other intangibles Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. e.l.f. Beauty, Inc. goodwill and other intangibles decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Adjustments to Financial Statements: Removal of Goodwill

e.l.f. Beauty, Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Adjustment to Total Assets
Total assets (as reported) 1,129,247 595,601 494,632 487,393 453,104
Less: Goodwill 340,600 171,620 171,620 171,620 171,321
Total assets (adjusted) 788,647 423,981 323,012 315,773 281,783
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 642,572 411,017 312,429 269,646 242,171
Less: Goodwill 340,600 171,620 171,620 171,620 171,321
Stockholders’ equity (adjusted) 301,972 239,397 140,809 98,026 70,850

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

e.l.f. Beauty, Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

e.l.f. Beauty, Inc., adjusted financial ratios

Microsoft Excel
Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Total Asset Turnover
Reported total asset turnover 0.91 0.97 0.79 0.65 0.62
Adjusted total asset turnover 1.30 1.37 1.21 1.01 1.00
Financial Leverage
Reported financial leverage 1.76 1.45 1.58 1.81 1.87
Adjusted financial leverage 2.61 1.77 2.29 3.22 3.98
Return on Equity (ROE)
Reported ROE 19.87% 14.97% 6.97% 2.31% 7.38%
Adjusted ROE 42.28% 25.70% 15.46% 6.36% 25.24%
Return on Assets (ROA)
Reported ROA 11.31% 10.33% 4.40% 1.28% 3.95%
Adjusted ROA 16.19% 14.51% 6.74% 1.97% 6.35%

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. e.l.f. Beauty, Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 e.l.f. Beauty, Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. e.l.f. Beauty, Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. e.l.f. Beauty, Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

e.l.f. Beauty, Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net sales 1,023,932 578,844 392,155 318,110 282,851
Total assets 1,129,247 595,601 494,632 487,393 453,104
Activity Ratio
Total asset turnover1 0.91 0.97 0.79 0.65 0.62
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales 1,023,932 578,844 392,155 318,110 282,851
Adjusted total assets 788,647 423,981 323,012 315,773 281,783
Activity Ratio
Adjusted total asset turnover2 1.30 1.37 1.21 1.01 1.00

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

2024 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 1,023,932 ÷ 1,129,247 = 0.91

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 1,023,932 ÷ 788,647 = 1.30

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. e.l.f. Beauty, Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Total assets 1,129,247 595,601 494,632 487,393 453,104
Stockholders’ equity 642,572 411,017 312,429 269,646 242,171
Solvency Ratio
Financial leverage1 1.76 1.45 1.58 1.81 1.87
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 788,647 423,981 323,012 315,773 281,783
Adjusted stockholders’ equity 301,972 239,397 140,809 98,026 70,850
Solvency Ratio
Adjusted financial leverage2 2.61 1.77 2.29 3.22 3.98

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 1,129,247 ÷ 642,572 = 1.76

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 788,647 ÷ 301,972 = 2.61

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 e.l.f. Beauty, Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income 127,663 61,530 21,770 6,232 17,884
Stockholders’ equity 642,572 411,017 312,429 269,646 242,171
Profitability Ratio
ROE1 19.87% 14.97% 6.97% 2.31% 7.38%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income 127,663 61,530 21,770 6,232 17,884
Adjusted stockholders’ equity 301,972 239,397 140,809 98,026 70,850
Profitability Ratio
Adjusted ROE2 42.28% 25.70% 15.46% 6.36% 25.24%

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

2024 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 127,663 ÷ 642,572 = 19.87%

2 Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 127,663 ÷ 301,972 = 42.28%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. e.l.f. Beauty, Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income 127,663 61,530 21,770 6,232 17,884
Total assets 1,129,247 595,601 494,632 487,393 453,104
Profitability Ratio
ROA1 11.31% 10.33% 4.40% 1.28% 3.95%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income 127,663 61,530 21,770 6,232 17,884
Adjusted total assets 788,647 423,981 323,012 315,773 281,783
Profitability Ratio
Adjusted ROA2 16.19% 14.51% 6.74% 1.97% 6.35%

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

2024 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 127,663 ÷ 1,129,247 = 11.31%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 127,663 ÷ 788,647 = 16.19%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. e.l.f. Beauty, Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.