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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Estée Lauder Cos. Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Current debt 4.26 1.28 0.15 6.87 3.92 1.46
Accounts payable 7.13 8.71 7.70 6.62 11.33 9.41
Current operating lease liabilities 1.52 1.75 1.73 2.11 0.00 0.00
Employee compensation 2.33 3.31 3.05 2.38 4.36 4.61
Accrued sales incentives 1.37 1.33 0.00 0.00 0.00 0.00
Deferred revenue 1.38 1.49 1.47 1.25 2.39 0.26
Other 8.65 9.93 10.03 9.89 13.01 10.61
Other accrued liabilities 13.73% 16.07% 14.54% 13.53% 19.76% 15.48%
Current liabilities 26.65% 27.81% 24.11% 29.13% 35.00% 26.34%
Long-term debt, excluding current maturities 30.40 24.60 25.20 27.64 22.01 26.74
Long-term operating lease liabilities 7.25 8.93 9.79 12.81 0.00 0.00
Other noncurrent liabilities 8.30 7.90 9.27 8.14 9.46 9.44
Noncurrent liabilities 45.94% 41.43% 44.26% 48.59% 31.47% 36.18%
Total liabilities 72.59% 69.24% 68.38% 77.72% 66.47% 62.52%
Redeemable noncontrolling interest 3.55 4.03 3.90 0.00 0.00 0.00
Common stock, $.01 par value 0.03 0.03 0.03 0.03 0.05 0.05
Paid-in capital 26.28 27.72 24.28 26.94 33.47 31.61
Retained earnings 59.75 66.53 55.73 56.99 75.89 71.93
Accumulated other comprehensive loss -3.99 -3.64 -2.14 -3.74 -4.28 -3.45
Treasury stock, at cost -58.21 -63.90 -50.33 -58.10 -71.78 -62.83
Stockholders’ equity, The Estée Lauder Companies Inc. 23.85% 26.73% 27.57% 22.13% 33.34% 37.30%
Noncontrolling interests 0.00 0.00 0.15 0.15 0.19 0.18
Total equity 23.85% 26.73% 27.72% 22.28% 33.53% 37.48%
Total liabilities, redeemable noncontrolling interest and equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The capital structure reflects a progressive shift toward higher leverage over the six-year period. Total liabilities as a percentage of the total balance sheet increased from 62.52% in 2018 to 72.59% in 2023, with a peak of 77.72% observed in 2020. This expansion of liabilities is mirrored by a corresponding decline in total equity, which fell from 37.48% in 2018 to 23.85% in 2023.

Liability Composition and Trends
Noncurrent liabilities exhibited the most significant growth, rising from 36.18% in 2018 to 45.94% in 2023. This trend was largely driven by long-term debt, excluding current maturities, which reached its highest relative concentration of 30.40% in 2023. A notable introduction of operating lease liabilities occurred in 2020, with long-term lease liabilities peaking at 12.81% before gradually declining to 7.25% by 2023.
Current liabilities remained relatively volatile but stayed within a range of 24.11% to 35.00%. Accounts payable and other accrued liabilities represent the primary drivers of short-term obligations, with other accrued liabilities peaking at 19.76% in 2019 before stabilizing around 13.73% in 2023.
Equity and Shareholders' Interests
Total equity demonstrated a consistent downward trend in its proportion of the balance sheet. Retained earnings, while remaining a substantial component, decreased from 71.93% in 2018 to 59.75% in 2023. The paid-in capital ratio also saw a general decline from 31.61% in 2018 to 26.28% in 2023.
The most prominent feature of the equity section is the high negative value of treasury stock, which fluctuated between -50.33% and -71.78%. The magnitude of these negative values indicates an aggressive program of share repurchases, which has served as a primary mechanism for reducing the total equity percentage over the analyzed period.

Overall, the financial position is characterized by an increasing reliance on long-term debt and a strategic reduction in equity through treasury stock acquisitions. The volatility observed in 2020 suggests a period of significant balance sheet restructuring or external economic pressure, followed by a partial stabilization of current liabilities and a continued increase in long-term leverage.

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