Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Estée Lauder Cos. Inc., liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Estée Lauder Cos. Inc. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Estée Lauder Cos. Inc. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Estée Lauder Cos. Inc. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
Estée Lauder Cos. Inc., current ratio calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 9,139) | 9,298) | 9,768) | 8,892) | 7,212) | 6,168) | |
| Current liabilities | 6,240) | 5,815) | 5,298) | 5,179) | 4,605) | 3,310) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.46 | 1.60 | 1.84 | 1.72 | 1.57 | 1.86 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Procter & Gamble Co. | 0.63 | 0.65 | 0.70 | 0.85 | 0.75 | 0.83 | |
| Current Ratio, Industry | |||||||
| Consumer Staples | 0.84 | 0.89 | 0.92 | 0.90 | 0.79 | — | |
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).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 9,139 ÷ 6,240 = 1.46
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Estée Lauder Cos. Inc. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Quick Ratio
Estée Lauder Cos. Inc., quick ratio calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 4,029) | 3,957) | 4,958) | 5,022) | 2,987) | 2,181) | |
| Short-term investments | —) | —) | —) | —) | —) | 534) | |
| Accounts receivable, net | 1,452) | 1,629) | 1,702) | 1,194) | 1,831) | 1,487) | |
| Total quick assets | 5,481) | 5,586) | 6,660) | 6,216) | 4,818) | 4,202) | |
| Current liabilities | 6,240) | 5,815) | 5,298) | 5,179) | 4,605) | 3,310) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.88 | 0.96 | 1.26 | 1.20 | 1.05 | 1.27 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Procter & Gamble Co. | 0.38 | 0.37 | 0.45 | 0.62 | 0.51 | 0.59 | |
| Quick Ratio, Industry | |||||||
| Consumer Staples | 0.37 | 0.40 | 0.43 | 0.46 | 0.36 | — | |
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).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,481 ÷ 6,240 = 0.88
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Estée Lauder Cos. Inc. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Cash Ratio
Estée Lauder Cos. Inc., cash ratio calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 4,029) | 3,957) | 4,958) | 5,022) | 2,987) | 2,181) | |
| Short-term investments | —) | —) | —) | —) | —) | 534) | |
| Total cash assets | 4,029) | 3,957) | 4,958) | 5,022) | 2,987) | 2,715) | |
| Current liabilities | 6,240) | 5,815) | 5,298) | 5,179) | 4,605) | 3,310) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.65 | 0.68 | 0.94 | 0.97 | 0.65 | 0.82 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Procter & Gamble Co. | 0.23 | 0.22 | 0.31 | 0.49 | 0.34 | 0.42 | |
| Cash Ratio, Industry | |||||||
| Consumer Staples | 0.24 | 0.25 | 0.31 | 0.33 | 0.23 | — | |
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).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,029 ÷ 6,240 = 0.65
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Estée Lauder Cos. Inc. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |