Stock Analysis on Net
Stock Analysis on Net

Estée Lauder Cos. Inc. (NYSE:EL)

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

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Estée Lauder Cos. Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Jun 30, 2023 18.01% = 4.30% × 4.19
Jun 30, 2022 42.75% = 11.43% × 3.74
Jun 30, 2021 47.38% = 13.06% × 3.63
Jun 30, 2020 17.38% = 3.85% × 4.52
Jun 30, 2019 40.70% = 13.57% × 3.00
Jun 30, 2018 23.63% = 8.82% × 2.68

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 primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Estée Lauder Cos. Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 30, 2023 18.01% = 6.32% × 0.68 × 4.19
Jun 30, 2022 42.75% = 13.47% × 0.85 × 3.74
Jun 30, 2021 47.38% = 17.70% × 0.74 × 3.63
Jun 30, 2020 17.38% = 4.79% × 0.80 × 4.52
Jun 30, 2019 40.70% = 12.01% × 1.13 × 3.00
Jun 30, 2018 23.63% = 8.10% × 1.09 × 2.68

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 primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Estée Lauder Cos. Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jun 30, 2023 18.01% = 0.72 × 0.85 × 10.36% × 0.68 × 4.19
Jun 30, 2022 42.75% = 0.79 × 0.95 × 17.96% × 0.85 × 3.74
Jun 30, 2021 47.38% = 0.86 × 0.95 × 21.58% × 0.74 × 3.63
Jun 30, 2020 17.38% = 0.66 × 0.87 × 8.36% × 0.80 × 4.52
Jun 30, 2019 40.70% = 0.78 × 0.95 × 16.36% × 1.13 × 3.00
Jun 30, 2018 23.63% = 0.56 × 0.94 × 15.34% × 1.09 × 2.68

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 primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Estée Lauder Cos. Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jun 30, 2023 4.30% = 6.32% × 0.68
Jun 30, 2022 11.43% = 13.47% × 0.85
Jun 30, 2021 13.06% = 17.70% × 0.74
Jun 30, 2020 3.85% = 4.79% × 0.80
Jun 30, 2019 13.57% = 12.01% × 1.13
Jun 30, 2018 8.82% = 8.10% × 1.09

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 primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Estée Lauder Cos. Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jun 30, 2023 4.30% = 0.72 × 0.85 × 10.36% × 0.68
Jun 30, 2022 11.43% = 0.79 × 0.95 × 17.96% × 0.85
Jun 30, 2021 13.06% = 0.86 × 0.95 × 21.58% × 0.74
Jun 30, 2020 3.85% = 0.66 × 0.87 × 8.36% × 0.80
Jun 30, 2019 13.57% = 0.78 × 0.95 × 16.36% × 1.13
Jun 30, 2018 8.82% = 0.56 × 0.94 × 15.34% × 1.09

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 primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Estée Lauder Cos. Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jun 30, 2023 6.32% = 0.72 × 0.85 × 10.36%
Jun 30, 2022 13.47% = 0.79 × 0.95 × 17.96%
Jun 30, 2021 17.70% = 0.86 × 0.95 × 21.58%
Jun 30, 2020 4.79% = 0.66 × 0.87 × 8.36%
Jun 30, 2019 12.01% = 0.78 × 0.95 × 16.36%
Jun 30, 2018 8.10% = 0.56 × 0.94 × 15.34%

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 primary reason for the decrease in net profit margin ratio over 2023 year is the decrease in operating profitability measured by EBIT margin ratio.