Total Asset Turnover
since 2005
Calculation
Estée Lauder Cos. Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net sales1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Jun 30, 2023 | 0.68 | = | 15,910) | ÷ | 23,415) |
| Jun 30, 2022 | 0.85 | = | 17,737) | ÷ | 20,910) |
| Jun 30, 2021 | 0.74 | = | 16,215) | ÷ | 21,971) |
| Jun 30, 2020 | 0.80 | = | 14,294) | ÷ | 17,781) |
| Jun 30, 2019 | 1.13 | = | 14,863) | ÷ | 13,156) |
| Jun 30, 2018 | 1.09 | = | 13,683) | ÷ | 12,567) |
| Jun 30, 2017 | 1.02 | = | 11,824) | ÷ | 11,568) |
| Jun 30, 2016 | 1.22 | = | 11,262) | ÷ | 9,223) |
| Jun 30, 2015 | 1.31 | = | 10,780) | ÷ | 8,239) |
| Jun 30, 2014 | 1.39 | = | 10,969) | ÷ | 7,869) |
| Jun 30, 2013 | 1.42 | = | 10,182) | ÷ | 7,145) |
| Jun 30, 2012 | 1.47 | = | 9,714) | ÷ | 6,593) |
| Jun 30, 2011 | 1.40 | = | 8,810) | ÷ | 6,274) |
| Jun 30, 2010 | 1.46 | = | 7,796) | ÷ | 5,336) |
| Jun 30, 2009 | 1.41 | = | 7,324) | ÷ | 5,177) |
| Jun 30, 2008 | 1.58 | = | 7,911) | ÷ | 5,011) |
| Jun 30, 2007 | 1.71 | = | 7,038) | ÷ | 4,126) |
| Jun 30, 2006 | 1.71 | = | 6,464) | ÷ | 3,784) |
| Jun 30, 2005 | 1.63 | = | 6,336) | ÷ | 3,886) |
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
A long-term downward trend in total asset turnover is observed from 2005 to 2023, indicating a decline in the efficiency with which the company utilizes its asset base to generate net sales. While net sales grew from 6,336 million USD in 2005 to 15,910 million USD in 2023, total assets increased at a significantly faster proportional rate, rising from 3,886 million USD to 23,415 million USD over the same period.
- Initial Efficiency Phase (2005–2007)
- The period was characterized by the highest levels of asset productivity, with the turnover ratio peaking at 1.71 in 2006 and 2007. During this time, the asset base remained relatively lean compared to the volume of sales generated.
- Gradual Decline Phase (2008–2016)
- A steady erosion of the asset turnover ratio occurred over nearly a decade, descending from 1.58 in 2008 to 1.22 in 2016. This suggests that asset growth began to outpace revenue growth, though the company maintained a ratio above 1.0 throughout this interval.
- Accelerated Deterioration (2017–2023)
- The most significant decline occurred after 2016, with the ratio falling below 1.0 starting in 2020. The turnover reached a low of 0.68 by 2023. This sharp downturn coincides with a substantial expansion of the balance sheet, where total assets surged from approximately 11.5 billion USD in 2016 to over 23.4 billion USD in 2023, while net sales experienced more volatility, including a peak in 2022 followed by a contraction in 2023.
The divergence between the growth of the asset base and the growth of net sales has resulted in a substantial reduction in asset productivity. The transition from a ratio of 1.63 in 2005 to 0.68 in 2023 reflects a fundamental shift in the company's operational leverage and capital intensity.
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Comparison to Competitors
Estée Lauder Cos. Inc., total asset turnover, long-term trends, comparison to competitors
| Estée Lauder Cos. Inc. | Procter & Gamble Co. | |
|---|---|---|
| Jun 30, 2023 | 0.68 | 0.68 |
| Jun 30, 2022 | 0.85 | 0.68 |
| Jun 30, 2021 | 0.74 | 0.64 |
| Jun 30, 2020 | 0.80 | 0.59 |
| Jun 30, 2019 | 1.13 | 0.59 |
| Jun 30, 2018 | 1.09 | 0.56 |
| Jun 30, 2017 | 1.02 | 0.54 |
| Jun 30, 2016 | 1.22 | 0.51 |
| Jun 30, 2015 | 1.31 | 0.59 |
| Jun 30, 2014 | 1.39 | 0.58 |
| Jun 30, 2013 | 1.42 | 0.60 |
| Jun 30, 2012 | 1.47 | 0.63 |
| Jun 30, 2011 | 1.40 | 0.60 |
| Jun 30, 2010 | 1.46 | 0.62 |
| Jun 30, 2009 | 1.41 | 0.59 |
| Jun 30, 2008 | 1.58 | 0.58 |
| Jun 30, 2007 | 1.71 | 0.55 |
| Jun 30, 2006 | 1.71 | 0.50 |
| Jun 30, 2005 | 1.63 | 0.92 |
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).
Comparison to Industry (Consumer Staples)
Estée Lauder Cos. Inc., total asset turnover, long-term trends, comparison to industry (consumer staples)
| Estée Lauder Cos. Inc. | Consumer Staples | |
|---|---|---|
| Jun 30, 2023 | 0.68 | 1.51 |
| Jun 30, 2022 | 0.85 | 1.47 |
| Jun 30, 2021 | 0.74 | 1.41 |
| Jun 30, 2020 | 0.80 | 1.32 |
| Jun 30, 2019 | 1.13 | 1.39 |
| Jun 30, 2018 | 1.09 | 1.39 |
| Jun 30, 2017 | 1.02 | 1.34 |
| Jun 30, 2016 | 1.22 | 1.35 |
| Jun 30, 2015 | 1.31 | 1.37 |
| Jun 30, 2014 | 1.39 | 1.32 |
| Jun 30, 2013 | 1.42 | 1.30 |
| Jun 30, 2012 | 1.47 | 1.30 |
| Jun 30, 2011 | 1.40 | 1.27 |
| Jun 30, 2010 | 1.46 | 1.24 |
| Jun 30, 2009 | 1.41 | 1.36 |
| Jun 30, 2008 | 1.58 | 1.35 |
| Jun 30, 2007 | 1.71 | 1.32 |
| Jun 30, 2006 | 1.71 | 1.33 |
| Jun 30, 2005 | 1.63 | 1.52 |
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).