Stock Analysis on Net
Stock Analysis on Net

Estée Lauder Cos. Inc. (NYSE:EL)

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Return on Capital (ROC)

Microsoft Excel LibreOffice Calc

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company’s debt and equity structure. It measures business productivity performance.

Return on Invested Capital (ROIC)

Estée Lauder Cos. Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Invested capital2
Performance Ratio
ROIC3
Benchmarks
ROIC, Competitors4
Colgate-Palmolive Co.
Procter & Gamble Co.

Based on: 10-K (filing date: 2021-08-27), 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24).

1 NOPAT. See details »

2 Invested capital. See details »

3 2021 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Estée Lauder Cos. Inc.’s ROIC deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Decomposition of ROIC

Estée Lauder Cos. Inc., decomposition of ROIC

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Jun 30, 2021 = × ×
Jun 30, 2020 = × ×
Jun 30, 2019 = × ×
Jun 30, 2018 = × ×
Jun 30, 2017 = × ×
Jun 30, 2016 = × ×

Based on: 10-K (filing date: 2021-08-27), 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2021 year is the increase in profitability measured by operating profit margin (OPM) ratio.

Operating Profit Margin (OPM)

Estée Lauder Cos. Inc., OPM calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
 
Net sales
Add: Increase (decrease) in deferred revenue
Adjusted net sales
Profitability Ratio
OPM3
Benchmarks
OPM, Competitors4
Colgate-Palmolive Co.
Procter & Gamble Co.

Based on: 10-K (filing date: 2021-08-27), 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2021 Calculation
OPM = 100 × NOPBT ÷ Adjusted net sales
= 100 × ÷ =

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Estée Lauder Cos. Inc.’s OPM deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Turnover of Capital (TO)

Estée Lauder Cos. Inc., TO calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Net sales
Add: Increase (decrease) in deferred revenue
Adjusted net sales
 
Invested capital1
Efficiency Ratio
TO2
Benchmarks
TO, Competitors3
Colgate-Palmolive Co.
Procter & Gamble Co.

Based on: 10-K (filing date: 2021-08-27), 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24).

1 Invested capital. See details »

2 2021 Calculation
TO = Adjusted net sales ÷ Invested capital
= ÷ =

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Estée Lauder Cos. Inc.’s TO deteriorated from 2019 to 2020 and from 2020 to 2021.

Effective Cash Tax Rate (CTR)

Estée Lauder Cos. Inc., CTR calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
Tax Rate
CTR3
Benchmarks
CTR, Competitors4
Colgate-Palmolive Co.
Procter & Gamble Co.

Based on: 10-K (filing date: 2021-08-27), 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2021 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Estée Lauder Cos. Inc.’s CTR increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.