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

Machinery, equipment and software

This category shows fluctuations with a slight decline from 15,327 thousand USD in 2020 to 14,899 thousand USD in 2021, followed by an increase to 15,757 thousand USD in 2022. There was a slight dip again in 2023 to 15,148 thousand USD, and then a significant rise to 20,222 thousand USD in 2024, indicating recent investment or acquisition in this asset type.

Leasehold improvements

There is a consistent upward trend in leasehold improvements over the period. Starting from 3,459 thousand USD in 2020, the value increased annually to reach 6,982 thousand USD by 2024, nearly doubling over five years. This suggests ongoing enhancements or expansions of leased properties.

Furniture and fixtures

Furniture and fixtures exhibit general growth, rising from 708 thousand USD in 2020 to 1,542 thousand USD in 2024. Despite a minor decline between 2021 and 2022, the upward trend continues, reflecting steady investment or replacement over time.

Store fixtures

Store fixtures display variability, increasing from 10,302 thousand USD in 2020 to a peak of 13,619 thousand USD in 2022, followed by a notable decline to 10,157 thousand USD in 2024. This decline may indicate asset disposals or revaluation adjustments in the latest years.

Property and equipment, gross

The gross value of property and equipment grows overall, starting at 29,796 thousand USD in 2020 and reaching 38,903 thousand USD in 2024. Peaks and troughs are evident, including a rise to 35,078 thousand USD in 2022, a dip to 31,870 thousand USD in 2023, and another substantial increase in 2024. This pattern reflects dynamic capital expenditures and asset management.

Accumulated depreciation and amortization

Accumulated depreciation and amortization steadily increase in absolute terms (with negative values indicating accumulated charges), from -12,625 thousand USD in 2020 to -24,929 thousand USD in 2024. The acceleration between 2021 and 2022 is notable, with a slight reduction in the rate of increase in the subsequent years, possibly due to asset disposals or changes in depreciation policies.

Property and equipment, net

The net property and equipment value shows a declining trend from 17,171 thousand USD in 2020 down to a low of 7,874 thousand USD in 2023, before rebounding to 13,974 thousand USD in 2024. This initial decline coupled with an accumulated depreciation increase suggests that asset write-offs or heavy depreciation were prominent prior to a recovery likely driven by recent acquisitions or capital improvements.

Average Age Ratio

The average age ratio demonstrates an increasing trend from 42.37% in 2020 to a peak of 75.29% in 2023, followed by a decline to 64.08% in 2024. This indicates that, up to 2023, the property, plant, and equipment were aging relative to their estimated useful lives, but there was some rejuvenation or replacement of assets by 2024.

Estimated Total Useful Life

The estimated total useful life of the assets showed variability during the period, remaining constant at 5 years in 2020 and 2021, then decreasing to 4 years in 2022. It increased significantly to 7 years in 2023 and further to 11 years in 2024. This suggests a shift in asset composition toward longer-lived assets or adjustments in management's estimates regarding asset longevity.

Estimated Age, Time Elapsed Since Purchase

The estimated age of the assets increased steadily from 2 years in 2020 to 7 years in 2024, aligning logically with the passage of time. An anomaly is observed in 2022 where the estimated age remains at 3 years, the same as the previous year, possibly reflecting asset additions or accounting adjustments in the asset base.

Estimated Remaining Life

The estimated remaining life declined from 3 years in 2020 to 1 year in 2022, indicating that part of the asset base was approaching the end of its useful life. However, it increased again to 2 years in 2023 and to 4 years in 2024, consistent with an increase in total useful life and possibly reflecting addition or replacement of newer assets extending the overall lifespan.

Property and Equipment, Gross

The gross value of property and equipment exhibited an overall increasing trend from 29,796 thousand US dollars in 2020 to 38,903 thousand US dollars in 2024. There was an incremental rise from 2020 to 2022, reaching 35,078 thousand US dollars. A decline occurred in 2023, where the value dropped to 31,870 thousand US dollars, followed by a significant rebound in 2024.

Accumulated Depreciation and Amortization

Accumulated depreciation and amortization consistently increased over the five-year period, growing from 12,625 thousand US dollars in 2020 to 24,929 thousand US dollars in 2024. A steady rise is notable through 2022, peaking at 24,501 thousand US dollars, with minor fluctuation in 2023 before a further increase in 2024.

Average Age Ratio

The average age ratio, expressed as a percentage, showed a rising trend from 42.37% in 2020 to 75.29% in 2023, indicating an aging asset base. However, in 2024, this ratio declined significantly to 64.08%. This rebound suggests a possible renewal or addition of newer assets during that period, partially offsetting the aging trend observed in prior years.

Overall Analysis

The data indicates that while the gross property and equipment value experienced growth with a temporary decline in 2023, accumulated depreciation steadily increased, reflecting ongoing asset usage and wear. The rising average age ratio through 2023 signals an aging asset portfolio, which reversed somewhat in 2024, coinciding with the increase in gross property and equipment value, potentially due to new acquisitions or capital investments. These patterns suggest a phase of asset renewal following a period of aging equipment.

Property and Equipment, Gross

Over the five-year period, the gross value of property and equipment exhibited a generally upward trend. It started at $29,796 thousand in 2020, increased steadily to reach $35,078 thousand by 2022, showing a growth phase. There was a slight decline in 2023 to $31,870 thousand, followed by a notable increase to $38,903 thousand in 2024, indicating renewed investment or capital expenditure in the latest year.

Depreciation and Amortization Expense on Property and Equipment

The depreciation and amortization expense showed more variability over the period. The expense began at $6,300 thousand in 2020 and rose gradually to $7,900 thousand in 2022, consistent with increasing asset base and/or accelerated asset wear. However, a significant drop occurred in the subsequent years: it declined to $4,300 thousand in 2023 and further to $3,500 thousand by 2024. This decline may imply changes in the asset composition, depreciation methods, or adjustments in asset useful lives.

Estimated Total Useful Life

The estimated total useful life of property and equipment demonstrated a clear lengthening trend, starting from 5 years in 2020 and 2021, decreasing slightly to 4 years in 2022, then substantially increasing to 7 years in 2023 and further to 11 years in 2024. This suggests a reassessment of asset longevity, potentially reflecting investments in more durable assets or changes in accounting estimates that affect depreciation schedules.

Summary of Trends and Insights

The data reflects a dynamic asset profile over the period examined. The increasing gross property and equipment values in most years indicate ongoing capital expenditures or acquisitions. Meanwhile, the decreasing depreciation expense combined with a lengthening useful life points towards a strategic reassessment of asset durability and depreciation policy. The temporary dip in gross assets in 2023 could suggest asset disposals or impairments during that year, while the substantial increase in 2024 may indicate significant reinvestment. Overall, these patterns imply a period of active asset management, with adjustments likely aimed at aligning depreciation practices with the evolving asset base and company strategy.

The analysis of the property, plant, and equipment financial data over the five reported periods reveals several key trends and insights regarding the company's asset usage and depreciation patterns.

Accumulated Depreciation and Amortization

There is a steady increase in accumulated depreciation and amortization from US$12,625 thousand in 2020 to US$24,929 thousand in 2024, nearly doubling over the five-year span. This upward movement indicates ongoing asset aging and systematic allocation of the asset cost over its useful life.

Depreciation and Amortization Expense on Property and Equipment

The annual depreciation and amortization expense shows a rising trend from US$6,300 thousand in 2020 to a peak of US$7,900 thousand in 2022, followed by a marked decline to US$3,500 thousand by 2024. This suggests that the company experienced higher expenses during the earlier years due to recent asset acquisitions or changes in asset valuation, subsequently decreasing as assets age or are fully depreciated.

Time Elapsed Since Purchase

The reported average age of the property and equipment increased from 2 years in 2020 to 7 years in 2024. This gradual aging aligns with the rising accumulated depreciation values and corroborates the declining depreciation expense, as older assets typically incur lower annual depreciation charges.

Overall, the data indicate an asset base that is maturing, with depreciation expenses diminishing over the latter periods, which may reflect limited recent investments in property and equipment or an accounting strategy that front-loads depreciation. The increase in accumulated depreciation corresponds logically with the growing asset age, implying consistent application of depreciation policies over time.

Property and Equipment, Net

The net value of property and equipment displayed a declining trend from March 31, 2020, to March 31, 2023. It decreased consistently from $17,171,000 in 2020 to $7,874,000 in 2023, indicating a substantial reduction in net book value over this period. However, in the latest period ending March 31, 2024, there was a noticeable rebound to $13,974,000, suggesting recent investments or revaluations impacted the asset base significantly.

Depreciation and Amortization Expense on Property and Equipment

The depreciation and amortization expense showed an overall fluctuating pattern over the analyzed periods. Starting at $6,300,000 in 2020, the expense increased to a peak of $7,900,000 by 2022. Following this peak, there was a sharp decline in expense amounts, falling to $4,300,000 in 2023 and further down to $3,500,000 in 2024. The reduction in depreciation expense corresponds partially to the decreasing net property and equipment values until 2023 and may also reflect changes in estimated remaining lives or asset acquisition timing.

Estimated Remaining Life

The estimated remaining life of property and equipment showed some variability. Initially, the remaining life shortened from 3 years in 2020 to 1 year by 2022, which aligns with the declining depreciation expense after 2022, as shorter remaining life typically increases annual depreciation charge. Yet, there was a reversal in the last two periods with the remaining life extending to 2 years in 2023 and then lengthening significantly to 4 years in 2024. This increase suggests new asset additions or extensions of asset useful lives, which is consistent with the observed increase in net property and equipment value in 2024.

Summary Insights

The overall asset base experienced considerable contraction over the first four years, likely due to asset disposals, full depreciations, or impairments, as reflected by the steady decline in net property and equipment and increasing then decreasing depreciation expenses. The sharp reduction in depreciation expense after 2022 aligns with the shorter remaining asset life and reduced asset base. In contrast, the most recent period indicates a renewal or addition to the asset base, as seen in the increased net property and equipment and extended estimated remaining life, which collectively point to reinvestment or updated asset valuation policies.