Name: Estée Lauder Cos. Inc. (NYSE:EL) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Current debt	997)	268)	32)	1,222)	516)	183)
Accounts payable	1,670)	1,822)	1,692)	1,177)	1,490)	1,182)
Current operating lease liabilities	357)	365)	379)	375)	—)	—)
Employee compensation	546)	693)	670)	424)	574)	579)
Accrued sales incentives	321)	278)	—)	—)	—)	—)
Deferred revenue	323)	312)	322)	222)	314)	33)
Other	2,026)	2,077)	2,203)	1,759)	1,711)	1,333)
Other accrued liabilities	3,216)	3,360)	3,195)	2,405)	2,599)	1,945)
Current liabilities	6,240)	5,815)	5,298)	5,179)	4,605)	3,310)
Long-term debt, excluding current maturities	7,117)	5,144)	5,537)	4,914)	2,896)	3,361)
Long-term operating lease liabilities	1,698)	1,868)	2,151)	2,278)	—)	—)
Other noncurrent liabilities	1,943)	1,651)	2,037)	1,448)	1,244)	1,186)
Noncurrent liabilities	10,758)	8,663)	9,725)	8,640)	4,140)	4,547)
Total liabilities	16,998)	14,478)	15,023)	13,819)	8,745)	7,857)
Redeemable noncontrolling interest	832)	842)	857)	—)	—)	—)
Common stock, $.01 par value	6)	6)	6)	6)	6)	6)
Paid-in capital	6,153)	5,796)	5,335)	4,790)	4,403)	3,972)
Retained earnings	13,991)	13,912)	12,244)	10,134)	9,984)	9,040)
Accumulated other comprehensive loss	(934)	(762)	(470)	(665)	(563)	(434)
Treasury stock, at cost	(13,631)	(13,362)	(11,058)	(10,330)	(9,444)	(7,896)
Stockholders’ equity, The Estée Lauder Companies Inc.	5,585)	5,590)	6,057)	3,935)	4,386)	4,688)
Noncontrolling interests	—)	—)	34)	27)	25)	22)
Total equity	5,585)	5,590)	6,091)	3,962)	4,411)	4,710)
Total liabilities, redeemable noncontrolling interest and equity	23,415)	20,910)	21,971)	17,781)	13,156)	12,567)

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 balance sheet exhibits a significant expansion in total liabilities over the six-year period, growing from US$ 7.86 billion in 2018 to US$ 17.00 billion by 2023. This growth is primarily driven by a substantial increase in long-term debt and a steady rise in current liabilities, indicating a shift toward a more leveraged capital structure.

Liability Trends and Debt Obligations: Long-term debt, excluding current maturities, more than doubled from US$ 3.36 billion in 2018 to US$ 7.12 billion in 2023. A significant escalation occurred between 2019 and 2020, where long-term debt rose from US$ 2.90 billion to US$ 4.91 billion. Current debt has exhibited high volatility, peaking at US$ 1.22 billion in 2020 before declining sharply to US$ 32 million in 2021 and subsequently rising to US$ 997 million by 2023. Additionally, other accrued liabilities showed a consistent upward trend, increasing from US$ 1.95 billion in 2018 to US$ 3.22 billion in 2023.
Equity Dynamics and Capital Returns: Total equity remained relatively flat compared to the growth in liabilities, ending at US$ 5.59 billion in 2023. While retained earnings grew steadily from US$ 9.04 billion in 2018 to US$ 13.99 billion in 2023, this organic growth was largely offset by aggressive share repurchases. Treasury stock at cost increased from US$ 7.90 billion in 2018 to US$ 13.63 billion in 2023, suggesting a strategic priority to return capital to shareholders. Furthermore, accumulated other comprehensive loss widened from US$ 434 million in 2018 to US$ 934 million in 2023, exerting additional downward pressure on total equity.
Overall Financial Leverage: The relationship between liabilities and equity indicates a marked increase in financial leverage. The ratio of total liabilities to total equity rose from approximately 1.67 in 2018 to 3.04 in 2023. Total liabilities, redeemable noncontrolling interest, and equity grew from US$ 12.57 billion to US$ 23.42 billion over the analyzed period, with the expansion funded predominantly through the issuance of long-term debt rather than the accumulation of equity.

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