Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2016
- Return on Equity (ROE) since 2016
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Profitability Ratios (Summary)
e.l.f. Beauty, Inc., profitability ratios
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).
- Gross Profit Margin
- The gross profit margin exhibits a consistent upward trend over the five-year period. Starting at 64.03% in 2020, it slightly increased to 64.82% in 2021, marginally dipped to 64.19% in 2022, and then rose more significantly to 67.44% in 2023, followed by a further increase to 70.72% in 2024. This progression indicates improving efficiency in controlling production costs relative to revenue.
- Operating Profit Margin
- The operating profit margin experienced volatility with a clear recovery trend. It declined sharply from 10.59% in 2020 to 2.95% in 2021, before recovering to 7.59% in 2022. Subsequent years show continued improvement, reaching 11.77% in 2023 and 14.62% in 2024, suggesting enhanced operational performance and better management of operating expenses.
- Net Profit Margin
- The net profit margin followed a similar pattern to the operating margin, starting at 6.32% in 2020 and falling to its lowest point at 1.96% in 2021. It then improved steadily each year, climbing to 5.55% in 2022, 10.63% in 2023, and 12.47% in 2024. This reflects a strong recovery in overall profitability after the 2021 downturn.
- Return on Equity (ROE)
- Return on equity exhibited significant fluctuation but demonstrated a robust growth trajectory. It decreased sharply from 7.38% in 2020 to 2.31% in 2021, then increased to 6.97% in 2022. The subsequent years show pronounced growth to 14.97% in 2023 and further to 19.87% in 2024, indicating increasing efficiency in generating shareholder returns.
- Return on Assets (ROA)
- Return on assets followed a pattern similar to ROE, dropping from 3.95% in 2020 to 1.28% in 2021 and then recovering substantially to 4.4% in 2022. This was followed by continued strong improvement, with ROA reaching 10.33% in 2023 and 11.31% in 2024. The trend signifies enhanced asset utilization and profitability over the period.
Return on Sales
Return on Investment
Gross Profit Margin
e.l.f. Beauty, Inc., gross profit margin calculation, comparison to benchmarks
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Procter & Gamble Co. | ||||||
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).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Gross Profit
- Gross profit demonstrates a consistent and substantial upward trend over the five-year period. Starting at approximately $181.1 million in 2020, it increased each year, reaching over $724 million in 2024. Notably, the growth accelerated significantly between 2022 and 2024, more than doubling in that span.
- Net Sales
- Net sales also exhibited a steady increase throughout the period, beginning at around $282.9 million in 2020 and exceeding $1 billion by 2024. The sales growth showed a comparable pattern to gross profit, with particularly strong increases occurring in the last two years.
- Gross Profit Margin
- The gross profit margin percentage remained relatively stable in the early years, fluctuating slightly around the 64% mark from 2020 to 2022. However, from 2022 onward, the margin improved noticeably, rising to 67.44% in 2023 and further to 70.72% in 2024. This indicates increasing operational efficiency or better pricing power contributing to higher profitability per dollar of sales.
Operating Profit Margin
e.l.f. Beauty, Inc., operating profit margin calculation, comparison to benchmarks
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Procter & Gamble Co. | ||||||
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | ||||||
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).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable trends in key performance metrics over the five-year period ending March 31, 2024.
- Net Sales
- Net sales exhibit a consistent upward trajectory from US$282,851 thousand in 2020 to US$1,023,932 thousand in 2024, representing more than a threefold increase. This steady growth indicates expanding market presence and demand for the company's products.
- Operating Income
- Operating income fluctuates in the initial years, starting at US$29,950 thousand in 2020, dropping significantly to US$9,400 thousand in 2021, then recovering to US$29,770 thousand in 2022. Subsequent years demonstrate substantial growth, with operating income reaching US$68,143 thousand in 2023 and more than doubling to US$149,678 thousand in 2024. This suggests an improvement in operational efficiency and profitability in recent years.
- Operating Profit Margin
- The operating profit margin follows a pattern consistent with operating income. It declines sharply from 10.59% in 2020 to 2.95% in 2021, indicating margin pressure or increased costs during that year. From 2022 onwards, the margin improves steadily, rising to 7.59% in 2022, 11.77% in 2023, and reaching 14.62% in 2024. The upward trend in margin points to enhanced cost management and pricing power, contributing to stronger profitability.
Overall, the data suggests that despite a challenging period reflected in 2021, the company has demonstrated significant recovery and growth. The expansion in sales combined with improved operating income and margins highlights increasing efficiency and successful scaling of operations over the analyzed period.
Net Profit Margin
e.l.f. Beauty, Inc., net profit margin calculation, comparison to benchmarks
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Procter & Gamble Co. | ||||||
| Net Profit Margin, Industry | ||||||
| Consumer Staples | ||||||
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).
1 2024 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income displayed fluctuating behavior over the analyzed periods. Starting at 17,884 thousand US dollars in 2020, it decreased significantly to 6,232 thousand by 2021. From 2021 onwards, net income experienced a marked upward trajectory, rising to 21,770 thousand in 2022, then sharply increasing to 61,530 thousand in 2023, and reaching 127,663 thousand in 2024. This indicates a strong recovery and accelerated profitability growth in recent years.
- Net Sales
- Net sales exhibited consistent and robust growth throughout the period. From 282,851 thousand US dollars in 2020, sales expanded steadily each year, reaching 318,110 thousand in 2021, 392,155 thousand in 2022, 578,844 thousand in 2023, and ultimately more than doubling to 1,023,932 thousand in 2024. This persistent upward trend reflects significant revenue growth and possibly increasing market share or expansion of product offerings.
- Net Profit Margin
- The net profit margin varied notably across the years. Initially at 6.32% in 2020, it declined to 1.96% in 2021, indicating a substantial reduction in profitability relative to sales during that period. Subsequently, the margin recovered and improved steadily, reaching 5.55% in 2022, then nearly doubling to 10.63% in 2023, and further increasing to 12.47% in 2024. This pattern suggests enhanced operational efficiency and better cost management leading to improved profitability ratios alongside growing sales.
Return on Equity (ROE)
e.l.f. Beauty, Inc., ROE calculation, comparison to benchmarks
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Procter & Gamble Co. | ||||||
| ROE, Industry | ||||||
| Consumer Staples | ||||||
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).
1 2024 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income exhibited notable fluctuations over the observed periods. Initially, there was a sharp decline from 17,884 thousand USD in 2020 to 6,232 thousand USD in 2021. This was followed by a recovery, with net income increasing to 21,770 thousand USD in 2022, and then a substantial rise in the subsequent years, reaching 61,530 thousand USD in 2023 and further climbing to 127,663 thousand USD in 2024. The overall trend points to strong growth after an initial dip.
- Stockholders' Equity
- Stockholders' equity showed a steady upward trend throughout the period. Beginning at 242,171 thousand USD in 2020, it increased consistently each year, reaching 269,646 thousand USD in 2021, 312,429 thousand USD in 2022, 411,017 thousand USD in 2023, and significantly rising to 642,572 thousand USD in 2024. This indicates a solid strengthening of the company's equity base over time.
- Return on Equity (ROE)
- The return on equity mirrored the fluctuations seen in net income but with a more pronounced recovery after 2021. It declined sharply from 7.38% in 2020 to 2.31% in 2021. Subsequently, the ROE improved to 6.97% in 2022, nearly doubled to 14.97% in 2023, and further increased to 19.87% in 2024. This trend reflects improved profitability relative to shareholders' equity, particularly in the latter years.
- Summary of Financial Trends
- The data reveals an initial period of financial stress or underperformance in 2021, possibly due to external or internal challenges, followed by a robust recovery and growth phase through 2024. The strong increase in net income coupled with the consistent growth in stockholders' equity and rising ROE suggests improved operational efficiency and enhanced shareholder value during the last two years. Overall, the financial performance shows positive momentum and strengthening fundamentals.
Return on Assets (ROA)
e.l.f. Beauty, Inc., ROA calculation, comparison to benchmarks
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Procter & Gamble Co. | ||||||
| ROA, Industry | ||||||
| Consumer Staples | ||||||
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).
1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial performance over the five-year period demonstrates several notable trends. Net income fluctuated initially, starting at 17,884 thousand US dollars in 2020, declining to 6,232 thousand in 2021, and then increasing significantly to 21,770 thousand in 2022. This upward momentum continued substantially into 2023 and 2024, with net income reaching 61,530 thousand and then more than doubling to 127,663 thousand, respectively.
Total assets showed a steady increase throughout the period, beginning at 453,104 thousand US dollars in 2020 and gradually rising to 487,393 thousand in 2021 and 494,632 thousand in 2022. The growth became more pronounced in 2023 with assets reaching 595,601 thousand and then experiencing a sharp increase to 1,129,247 thousand in 2024. This suggests significant asset accumulation or investment in the most recent year.
The Return on Assets (ROA) exhibited a pattern broadly consistent with the net income trend, starting at 3.95% in 2020 and decreasing to 1.28% in 2021, indicative of reduced profitability or efficiency. ROA then rebounded to 4.4% in 2022, followed by a strong rise to 10.33% in 2023 and further to 11.31% in 2024. This trend points to improving asset utilization and profitability over time, particularly in the latter years.
- Summary of Trends
- Net income: Initial decline in 2021 followed by strong and sustained growth through 2024, culminating in a peak exceeding 127 million USD.
- Total assets: Steady growth from 2020 to 2022, then a marked acceleration in 2023 and 2024, more than doubling assets in the final year.
- ROA: Decline in early period to a low 1.28% in 2021, then significant improvement indicating enhanced profitability and asset efficiency, achieving above 11% by 2024.
Overall, the data reflects a turnaround and robust expansion both in profitability and asset base, with clear improvements in operational efficiency as evidenced by rising ROA in recent years. The sharp increases in net income and total assets highlight a period of accelerated growth and enhanced financial strength.