Stock Analysis on Net

Estée Lauder Cos. Inc. (NYSE:EL)

$22.49

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

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Estée Lauder Cos. Inc., ROE, long-term trends, calculation

Microsoft Excel

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


Net Earnings Attributable to The Estée Lauder Companies Inc.
The net earnings experienced fluctuations over the observed period. Initially, earnings declined from 406 million USD in 2005 to a low of 218 million USD in 2009. Subsequently, there was a recovery trend with earnings generally increasing, reaching a peak of 2,870 million USD in 2021. However, after this peak, earnings contracted significantly to 1,006 million USD in 2023, indicating notable volatility in profitability.
Stockholders' Equity
Stockholders' equity showed an overall upward trend throughout the years. Starting at 1,693 million USD in 2005, it experienced moderate fluctuations but maintained growth, reaching 6,057 million USD in 2021. Slight declines were observed in the following years, with equity values settling around 5,585 million USD in 2023. The equity growth reflects continued capital accumulation and retained earnings expansion despite periodic setbacks.
Return on Equity (ROE)
The ROE metric exhibited a pattern of variability with several peaks and troughs. ROE started at a relatively high 23.99% in 2005, declined to around 13.32% in 2009, and then generally increased, attaining the highest level of 47.38% in 2021. After 2021, ROE decreased noticeably, reaching 18.01% in 2023. The fluctuations in ROE indicate changes in the company's efficiency in generating returns on shareholders' equity, with a remarkable performance spike around 2021 followed by a decline.
Summary of Trends
The overall trend depicts a company that has experienced variable net earnings and profitability as measured by ROE, with notable increases around 2020-2021, followed by a correction in subsequent years. Despite variability in earnings and returns, stockholders’ equity demonstrates a consistent expansion over the long term, which suggests ongoing reinvestment and capital growth. The years 2020 and 2021 stand out as peaks in both profitability and net earnings, likely indicative of exceptional performance or one-time factors. The decline in profitability and earnings post-2021 may require further investigation into underlying causes.

Comparison to Competitors


Comparison to Industry (Consumer Staples)