Stock Analysis on Net
Stock Analysis on Net

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

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

e.l.f. Beauty, Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2024 19.87% = 11.31% × 1.76
Mar 31, 2023 14.97% = 10.33% × 1.45
Mar 31, 2022 6.97% = 4.40% × 1.58
Mar 31, 2021 2.31% = 1.28% × 1.81
Mar 31, 2020 7.38% = 3.95% × 1.87

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).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

e.l.f. Beauty, Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2024 19.87% = 12.47% × 0.91 × 1.76
Mar 31, 2023 14.97% = 10.63% × 0.97 × 1.45
Mar 31, 2022 6.97% = 5.55% × 0.79 × 1.58
Mar 31, 2021 2.31% = 1.96% × 0.65 × 1.81
Mar 31, 2020 7.38% = 6.32% × 0.62 × 1.87

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).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

e.l.f. Beauty, Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Mar 31, 2024 19.87% = 0.91 × 0.92 × 14.93% × 0.91 × 1.76
Mar 31, 2023 14.97% = 0.96 × 0.94 × 11.76% × 0.97 × 1.45
Mar 31, 2022 6.97% = 0.86 × 0.91 × 7.11% × 0.79 × 1.58
Mar 31, 2021 2.31% = 1.69 × 0.47 × 2.45% × 0.65 × 1.81
Mar 31, 2020 7.38% = 0.74 × 0.77 × 11.04% × 0.62 × 1.87

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).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

e.l.f. Beauty, Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2024 11.31% = 12.47% × 0.91
Mar 31, 2023 10.33% = 10.63% × 0.97
Mar 31, 2022 4.40% = 5.55% × 0.79
Mar 31, 2021 1.28% = 1.96% × 0.65
Mar 31, 2020 3.95% = 6.32% × 0.62

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).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

e.l.f. Beauty, Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Mar 31, 2024 11.31% = 0.91 × 0.92 × 14.93% × 0.91
Mar 31, 2023 10.33% = 0.96 × 0.94 × 11.76% × 0.97
Mar 31, 2022 4.40% = 0.86 × 0.91 × 7.11% × 0.79
Mar 31, 2021 1.28% = 1.69 × 0.47 × 2.45% × 0.65
Mar 31, 2020 3.95% = 0.74 × 0.77 × 11.04% × 0.62

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).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

e.l.f. Beauty, Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Mar 31, 2024 12.47% = 0.91 × 0.92 × 14.93%
Mar 31, 2023 10.63% = 0.96 × 0.94 × 11.76%
Mar 31, 2022 5.55% = 0.86 × 0.91 × 7.11%
Mar 31, 2021 1.96% = 1.69 × 0.47 × 2.45%
Mar 31, 2020 6.32% = 0.74 × 0.77 × 11.04%

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).

The primary reason for the increase in net profit margin ratio over 2024 year is the increase in operating profitability measured by EBIT margin ratio.