Operating Profit Margin
since 2005
Calculation
Estée Lauder Cos. Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2023 | 9.48% | = | 100 | × | 1,509) | ÷ | 15,910) |
| Jun 30, 2022 | 17.87% | = | 100 | × | 3,170) | ÷ | 17,737) |
| Jun 30, 2021 | 16.15% | = | 100 | × | 2,618) | ÷ | 16,215) |
| Jun 30, 2020 | 4.24% | = | 100 | × | 606) | ÷ | 14,294) |
| Jun 30, 2019 | 15.56% | = | 100 | × | 2,313) | ÷ | 14,863) |
| Jun 30, 2018 | 15.00% | = | 100 | × | 2,052) | ÷ | 13,683) |
| Jun 30, 2017 | 14.31% | = | 100 | × | 1,692) | ÷ | 11,824) |
| Jun 30, 2016 | 14.30% | = | 100 | × | 1,610) | ÷ | 11,262) |
| Jun 30, 2015 | 14.90% | = | 100 | × | 1,606) | ÷ | 10,780) |
| Jun 30, 2014 | 16.66% | = | 100 | × | 1,828) | ÷ | 10,969) |
| Jun 30, 2013 | 14.99% | = | 100 | × | 1,526) | ÷ | 10,182) |
| Jun 30, 2012 | 13.50% | = | 100 | × | 1,312) | ÷ | 9,714) |
| Jun 30, 2011 | 12.37% | = | 100 | × | 1,089) | ÷ | 8,810) |
| Jun 30, 2010 | 10.13% | = | 100 | × | 790) | ÷ | 7,796) |
| Jun 30, 2009 | 5.71% | = | 100 | × | 418) | ÷ | 7,324) |
| Jun 30, 2008 | 10.25% | = | 100 | × | 811) | ÷ | 7,911) |
| Jun 30, 2007 | 10.66% | = | 100 | × | 750) | ÷ | 7,038) |
| Jun 30, 2006 | 9.59% | = | 100 | × | 620) | ÷ | 6,464) |
| Jun 30, 2005 | 11.37% | = | 100 | × | 721) | ÷ | 6,336) |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$ in millions
The operating profit margin exhibits a long-term trend of expansion characterized by significant periods of stability interrupted by acute volatility. Between 2005 and 2023, the margin transitioned from an initial range of approximately 9% to 11% to a peak of 17.87% in 2022, before experiencing a sharp contraction in 2023.
- Initial Period and First Contraction (2005-2009)
- The period began with a margin of 11.37% in 2005, which fluctuated slightly before experiencing a severe decline to 5.71% in 2009. This represents the first major trough in the analyzed timeframe, coinciding with a decrease in both operating income and net sales.
- Sustainable Growth and Operational Efficiency (2010-2019)
- Following the 2009 low, a consistent recovery is observed. The operating profit margin climbed steadily from 10.13% in 2010 to a peak of 16.66% in 2014. Despite a brief stabilization period between 2015 and 2017, where the margin held near 14.3%, the upward trajectory resumed, reaching 15.56% by 2019. This decade reflects a sustained improvement in the conversion of net sales into operating profit.
- Recent Volatility and Current Standing (2020-2023)
- The most significant volatility occurred starting in 2020, when the operating profit margin plummeted to 4.24%, the lowest point in the entire data set. This was followed by a rapid and aggressive recovery, with margins surging to 16.15% in 2021 and hitting an all-time high of 17.87% in 2022. However, this peak was short-lived, as the margin contracted sharply to 9.48% in 2023, erasing nearly a decade of margin gains and returning the company to levels seen in 2006.
Overall, while net sales generally grew from 6.3 billion USD in 2005 to 15.9 billion USD in 2023, the operating profit margin has not followed a linear path. The data indicates a high sensitivity to external shocks, as evidenced by the deep troughs in 2009 and 2020, and a current trend of margin compression as of the 2023 reporting period.
AI Ask an analyst for more
Comparison to Competitors
Estée Lauder Cos. Inc., operating profit margin, long-term trends, comparison to competitors
| Estée Lauder Cos. Inc. | Procter & Gamble Co. | |
|---|---|---|
| Jun 30, 2023 | 9.48% | 22.11% |
| Jun 30, 2022 | 17.87% | 22.21% |
| Jun 30, 2021 | 16.15% | 23.63% |
| Jun 30, 2020 | 4.24% | 22.14% |
| Jun 30, 2019 | 15.56% | 8.11% |
| Jun 30, 2018 | 15.00% | 20.52% |
| Jun 30, 2017 | 14.31% | 21.45% |
| Jun 30, 2016 | 14.30% | 20.58% |
| Jun 30, 2015 | 14.90% | 15.46% |
| Jun 30, 2014 | 16.66% | 18.41% |
| Jun 30, 2013 | 14.99% | 17.21% |
| Jun 30, 2012 | 13.50% | 15.88% |
| Jun 30, 2011 | 12.37% | 19.16% |
| Jun 30, 2010 | 10.13% | 20.30% |
| Jun 30, 2009 | 5.71% | 20.40% |
| Jun 30, 2008 | 10.25% | 20.46% |
| Jun 30, 2007 | 10.66% | 20.20% |
| Jun 30, 2006 | 9.59% | 19.42% |
| Jun 30, 2005 | 11.37% | 19.26% |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).