Analysis of Debt
Total Debt (Carrying Amount)
Estée Lauder Cos. Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
The total debt profile exhibits a significant upward trajectory over the analyzed period, with the total carrying amount increasing from US$ 3,544 million in June 2018 to US$ 8,114 million by June 2023. A notable shift in the debt structure occurred between 2019 and 2020, where total debt nearly doubled, followed by a period of relative stabilization before a final sharp increase in 2023.
- Total Debt Evolution
- The total carrying amount of debt remained relatively stable between 2018 and 2019, moving from US$ 3,544 million to US$ 3,412 million. A substantial increase to US$ 6,136 million was recorded in 2020. Despite minor reductions in 2021 and 2022, total obligations surged to a period peak of US$ 8,114 million by June 30, 2023.
- Long-Term Debt Dynamics
- Long-term debt, excluding current maturities, serves as the primary driver of the total debt load. This figure grew from US$ 3,361 million in 2018 to US$ 7,117 million in 2023. The most pronounced growth occurred between 2019 and 2021, as the amount rose from US$ 2,896 million to US$ 5,537 million, suggesting an increased reliance on long-term financing instruments.
- Current Debt Volatility
- Current debt exhibited high volatility throughout the observed window. A peak of US$ 1,222 million was reached in 2020, which was followed by a sharp decline to US$ 32 million in 2021. This volatility indicates fluctuating short-term liquidity requirements or the strategic refinancing of short-term obligations into long-term debt, ending with a significant rise to US$ 997 million in 2023.
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Total Debt (Fair Value)
| Jun 30, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total current and long-term debt (fair value) | 7,665) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.94 |
Based on: 10-K (reporting date: 2023-06-30).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 3.65%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 5.15% | 590) | 30) | |
| 3.13% | 636) | 20) | |
| 4.15% | 494) | 21) | |
| 4.38% | 454) | 20) | |
| 3.70% | 247) | 9) | |
| 6.00% | 295) | 18) | |
| 5.75% | 198) | 11) | |
| 4.65% | 695) | 32) | |
| 1.95% | 550) | 11) | |
| 2.60% | 589) | 15) | |
| 2.38% | 643) | 15) | |
| 4.38% | 696) | 30) | |
| 3.15% | 499) | 16) | |
| 2.00% | 498) | 10) | |
| Total | 7,084) | 259) | |
| 3.65% | |||
Based on: 10-K (reporting date: 2023-06-30).
1 US$ in millions
2 Weighted-average interest rate = 100 × 259 ÷ 7,084 = 3.65%