Stock Analysis on Net
Stock Analysis on Net

Estée Lauder Cos. Inc. (NYSE:EL)

This company has been moved to the archive! The financial data has not been updated since August 18, 2023.

Analysis of Investments

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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Estée Lauder Cos. Inc., adjustment to net earnings attributable to The Estée Lauder Companies Inc.

US$ in millions

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12 months ended: Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Net earnings attributable to The Estée Lauder Companies Inc. (as reported) 1,006 2,390 2,870 684 1,785 1,108
Add: Net unrealized investment gain (loss) — — — — 14 (13)
Net earnings attributable to The Estée Lauder Companies Inc. (adjusted) 1,006 2,390 2,870 684 1,799 1,095

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Estée Lauder Cos. Inc., adjusted profitability ratios

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Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Net Profit Margin
Reported net profit margin 6.32% 13.47% 17.70% 4.79% 12.01% 8.10%
Adjusted net profit margin 6.32% 13.47% 17.70% 4.79% 12.10% 8.00%
Return on Equity (ROE)
Reported ROE 18.01% 42.75% 47.38% 17.38% 40.70% 23.63%
Adjusted ROE 18.01% 42.75% 47.38% 17.38% 41.02% 23.36%
Return on Assets (ROA)
Reported ROA 4.30% 11.43% 13.06% 3.85% 13.57% 8.82%
Adjusted ROA 4.30% 11.43% 13.06% 3.85% 13.67% 8.71%

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).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Estée Lauder Cos. Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Estée Lauder Cos. Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Estée Lauder Cos. Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to The Estée Lauder Companies Inc. 1,006 2,390 2,870 684 1,785 1,108
Net sales 15,910 17,737 16,215 14,294 14,863 13,683
Profitability Ratio
Net profit margin1 6.32% 13.47% 17.70% 4.79% 12.01% 8.10%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to The Estée Lauder Companies Inc. 1,006 2,390 2,870 684 1,799 1,095
Net sales 15,910 17,737 16,215 14,294 14,863 13,683
Profitability Ratio
Adjusted net profit margin2 6.32% 13.47% 17.70% 4.79% 12.10% 8.00%

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).

2023 Calculations

1 Net profit margin = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Net sales
= 100 × 1,006 ÷ 15,910 = 6.32%

2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to The Estée Lauder Companies Inc. ÷ Net sales
= 100 × 1,006 ÷ 15,910 = 6.32%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Estée Lauder Cos. Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to The Estée Lauder Companies Inc. 1,006 2,390 2,870 684 1,785 1,108
Stockholders’ equity, The Estée Lauder Companies Inc. 5,585 5,590 6,057 3,935 4,386 4,688
Profitability Ratio
ROE1 18.01% 42.75% 47.38% 17.38% 40.70% 23.63%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to The Estée Lauder Companies Inc. 1,006 2,390 2,870 684 1,799 1,095
Stockholders’ equity, The Estée Lauder Companies Inc. 5,585 5,590 6,057 3,935 4,386 4,688
Profitability Ratio
Adjusted ROE2 18.01% 42.75% 47.38% 17.38% 41.02% 23.36%

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).

2023 Calculations

1 ROE = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= 100 × 1,006 ÷ 5,585 = 18.01%

2 Adjusted ROE = 100 × Adjusted net earnings attributable to The Estée Lauder Companies Inc. ÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= 100 × 1,006 ÷ 5,585 = 18.01%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Estée Lauder Cos. Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to The Estée Lauder Companies Inc. 1,006 2,390 2,870 684 1,785 1,108
Total assets 23,415 20,910 21,971 17,781 13,156 12,567
Profitability Ratio
ROA1 4.30% 11.43% 13.06% 3.85% 13.57% 8.82%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to The Estée Lauder Companies Inc. 1,006 2,390 2,870 684 1,799 1,095
Total assets 23,415 20,910 21,971 17,781 13,156 12,567
Profitability Ratio
Adjusted ROA2 4.30% 11.43% 13.06% 3.85% 13.67% 8.71%

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).

2023 Calculations

1 ROA = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Total assets
= 100 × 1,006 ÷ 23,415 = 4.30%

2 Adjusted ROA = 100 × Adjusted net earnings attributable to The Estée Lauder Companies Inc. ÷ Total assets
= 100 × 1,006 ÷ 23,415 = 4.30%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Estée Lauder Cos. Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.