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ELF (e.l.f. Beauty) Financial Strength : 8 (As of Sep. 2024)


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What is e.l.f. Beauty Financial Strength?

e.l.f. Beauty has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

e.l.f. Beauty Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

e.l.f. Beauty's Interest Coverage for the quarter that ended in Sep. 2024 was 7.42. e.l.f. Beauty's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.25. As of today, e.l.f. Beauty's Altman Z-Score is 10.52.


Competitive Comparison of e.l.f. Beauty's Financial Strength

For the Household & Personal Products subindustry, e.l.f. Beauty's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


e.l.f. Beauty's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, e.l.f. Beauty's Financial Strength distribution charts can be found below:

* The bar in red indicates where e.l.f. Beauty's Financial Strength falls into.



e.l.f. Beauty Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

e.l.f. Beauty's Interest Expense for the months ended in Sep. 2024 was $-4 Mil. Its Operating Income for the months ended in Sep. 2024 was $28 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $193 Mil.

e.l.f. Beauty's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*27.918/-3.761
=7.42

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

e.l.f. Beauty's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(108.442 + 192.824) / 1204.3
=0.25

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

e.l.f. Beauty has a Z-score of 10.52, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 10.52 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


e.l.f. Beauty  (NYSE:ELF) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

e.l.f. Beauty has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


e.l.f. Beauty Financial Strength Related Terms

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e.l.f. Beauty Business Description

Traded in Other Exchanges
Address
570 10th Street, Oakland, CA, USA, 94607
e.l.f. Beauty Inc is a multi-brand beauty company that offers inclusive, accessible, clean, vegan and cruelty-free cosmetics and skin care products. The Company's mission is to make the best of beauty accessible to every eye, lip, face, and skin concern. The company offers cosmetic accessories for women which include eyeliner, mascara, false eyelashes, lipstick, the foundation for the face, moisturizer, cleanser, and other tools through its stores and e-commerce channels. The products that the company sells are marketed under the e.l.f. Cosmetics, W3LL PEOPLE and Keys Soulcare brands. It carries out sales within the US and internationally, out of which maximum revenue is generated from the US.
Executives
Maureen C. Watson director 570 10TH STREET, OAKLAND CA 94607
Levitan Lauren Cooks director 570 10TH STREET, OAKLAND CA 94607
Tarang Amin director, 10 percent owner, officer: See remarks C/O SCHIFF NUTRITION INTERNATIONAL, INC., 2002 SOUTH 5070 WEST, SALT LAKE CITY UT 84104
Jennifer Catherine Hartnett officer: Chief Commercial Officer C/O E.L.F. BEAUTY, INC., 570 10TH STREET, OAKLAND CA 94607
Joshua Allen Franks officer: SVP, Operations C/O E.L.F. BEAUTY, INC., 570 10TH STREET, OAKLAND CA 94607
Richard G Wolford director
Kory Marchisotto officer: See Remarks C/O E.L.F. BEAUTY, INC., 570 10TH STREET, OAKLAND CA 94607
Scott Milsten officer: See remarks C/O E.L.F. BEAUTY, INC., 570 10TH STREET, OAKLAND CA 94607
Mandy J Fields officer: See Remarks C/O E.L.F. BEAUTY, INC., 570 10TH STREET, OAKLAND CA 94607
Beth M Pritchard director BORDERS GROUP INC, 100 PHOENIX DRIVE, ANN ARBOR MI 48108
Tiffany F. Daniele director C/O USHG ACQUISITION CORP., 853 BROADWAY, 17TH FLOOR, NEW YORK NY 10003
Gayle Tait director C/O E.L.F. BEAUTY, INC., 570 10TH STREET, 3RD FLOOR, OAKLAND CA 94607
Baruch Richard F Jr officer: See remarks SCHIFF NUTRITION INTERNATIONAL INC, 2002 SOUTH 5070 WEST, SALT LAKE CITY UT 84104-4726
Sabrina Simmons director GAP INC., 2 FOLSOM STREET, SAN FRANCISCO CA 94105
Kenneth Jr Mitchell director C/O E.L.F. BEAUTY, INC., 570 10TH STREET, OAKLAND CA 94607