Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Capital
Debt to Assets
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Estée Lauder Cos. Inc., solvency ratios

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Debt Ratios
	Debt to equity
	Debt to capital
	Debt to assets
	Financial leverage
	Coverage Ratios
	Interest coverage
	Fixed charge coverage

Based on: 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), 10-K (filing date: 2015-08-20), 10-K (filing date: 2014-08-20).

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Estée Lauder Cos. Inc.’s debt to equity ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Estée Lauder Cos. Inc.’s debt to capital ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Estée Lauder Cos. Inc.’s debt to assets ratio improved from 2017 to 2018 and from 2018 to 2019.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Estée Lauder Cos. Inc.’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Estée Lauder Cos. Inc.’s interest coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Estée Lauder Cos. Inc.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Estée Lauder Cos. Inc., debt to equity calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Current debt
	Long-term debt
	Total debt

	Stockholders’ equity, The Estée Lauder Companies Inc.
	Solvency Ratio
	Debt to equity¹
	Benchmarks
	Debt to Equity, Competitors²
	Colgate-Palmolive Co.
	Kimberly-Clark Corp.
	Nike Inc.
	Debt to Equity, Sector
	Personal Goods
	Debt to Equity, Industry
	Consumer Goods

Based on: 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), 10-K (filing date: 2015-08-20), 10-K (filing date: 2014-08-20).

¹ 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Estée Lauder Cos. Inc.’s debt to equity ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Estée Lauder Cos. Inc., debt to capital calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Current debt
	Long-term debt
	Total debt
	Stockholders’ equity, The Estée Lauder Companies Inc.
	Total capital
	Solvency Ratio
	Debt to capital¹
	Benchmarks
	Debt to Capital, Competitors²
	Colgate-Palmolive Co.
	Kimberly-Clark Corp.
	Nike Inc.
	Debt to Capital, Sector
	Personal Goods
	Debt to Capital, Industry
	Consumer Goods

Based on: 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), 10-K (filing date: 2015-08-20), 10-K (filing date: 2014-08-20).

¹ 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Estée Lauder Cos. Inc.’s debt to capital ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Estée Lauder Cos. Inc., debt to assets calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Current debt
	Long-term debt
	Total debt

	Total assets
	Solvency Ratio
	Debt to assets¹
	Benchmarks
	Debt to Assets, Competitors²
	Colgate-Palmolive Co.
	Kimberly-Clark Corp.
	Nike Inc.
	Debt to Assets, Sector
	Personal Goods
	Debt to Assets, Industry
	Consumer Goods

Based on: 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), 10-K (filing date: 2015-08-20), 10-K (filing date: 2014-08-20).

¹ 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Estée Lauder Cos. Inc.’s debt to assets ratio improved from 2017 to 2018 and from 2018 to 2019.

Estée Lauder Cos. Inc., financial leverage calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Total assets
	Stockholders’ equity, The Estée Lauder Companies Inc.
	Solvency Ratio
	Financial leverage¹
	Benchmarks
	Financial Leverage, Competitors²
	Colgate-Palmolive Co.
	Kimberly-Clark Corp.
	Nike Inc.
	Financial Leverage, Sector
	Personal Goods
	Financial Leverage, Industry
	Consumer Goods

Based on: 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), 10-K (filing date: 2015-08-20), 10-K (filing date: 2014-08-20).

¹ 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Estée Lauder Cos. Inc.’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Estée Lauder Cos. Inc., interest coverage calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Net earnings attributable to The Estée Lauder Companies Inc.
	Add: Net income attributable to noncontrolling interest
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Solvency Ratio
	Interest coverage¹
	Benchmarks
	Interest Coverage, Competitors²
	Colgate-Palmolive Co.
	Kimberly-Clark Corp.
	Nike Inc.
	Interest Coverage, Sector
	Personal Goods
	Interest Coverage, Industry
	Consumer Goods

Based on: 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), 10-K (filing date: 2015-08-20), 10-K (filing date: 2014-08-20).

¹ 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Estée Lauder Cos. Inc.’s interest coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Estée Lauder Cos. Inc., fixed charge coverage calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Net earnings attributable to The Estée Lauder Companies Inc.
	Add: Net income attributable to noncontrolling interest
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Add: Rental expense
	Earnings before fixed charges and tax

	Interest expense
	Rental expense
	Fixed charges
	Solvency Ratio
	Fixed charge coverage¹
	Benchmarks
	Fixed Charge Coverage, Competitors²
	Colgate-Palmolive Co.
	Kimberly-Clark Corp.
	Nike Inc.
	Fixed Charge Coverage, Sector
	Personal Goods
	Fixed Charge Coverage, Industry
	Consumer Goods

Based on: 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), 10-K (filing date: 2015-08-20), 10-K (filing date: 2014-08-20).

¹ 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Estée Lauder Cos. Inc.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

	Estée Lauder Cos. Inc.	Other companies (not purchased previously)
Financial Statements
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Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
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Financial Statements
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Analysis of Financial Ratios
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Economic Value Added (EVA)
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Analysis of Components of Financial Statements
Financial Reporting Quality

Estée Lauder Cos. Inc. (NYSE:EL)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Capital

Debt to Assets

Financial Leverage

Interest Coverage

Fixed Charge Coverage