Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

Profitability Ratios (Summary)
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Equity (ROE)
Return on Assets (ROA)

Estée Lauder Cos. Inc., profitability ratios

	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015
Return on Sales
Gross profit margin	75.15%	77.21%	79.22%	79.39%	80.63%	80.51%
Operating profit margin	4.24%	15.56%	15.00%	14.31%	14.30%	14.90%
Net profit margin	4.79%	12.01%	8.10%	10.56%	9.90%	10.10%
Return on Investment
Return on equity (ROE)	17.38%	40.70%	23.63%	28.49%	31.20%	29.89%
Return on assets (ROA)	3.85%	13.57%	8.82%	10.80%	12.08%	13.22%

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

Profitability ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Estée Lauder Cos. Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Estée Lauder Cos. Inc.’s operating profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Estée Lauder Cos. Inc.’s net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Profitability ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Estée Lauder Cos. Inc.’s ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
ROA	A profitability ratio calculated as net income divided by total assets.	Estée Lauder Cos. Inc.’s ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Estée Lauder Cos. Inc., gross profit margin calculation, comparison to benchmarks

	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015
Selected Financial Data (US$ in millions)
Gross profit	10,742	11,476	10,839	9,387	9,081	8,680
Net sales	14,294	14,863	13,683	11,824	11,262	10,780
Profitability Ratio
Gross profit margin¹	75.15%	77.21%	79.22%	79.39%	80.63%	80.51%
Benchmarks
Gross Profit Margin, Competitors²
Colgate-Palmolive Co.	—	59.42%	59.39%	60.05%	60.04%	58.62%
Kimberly-Clark Corp.	—	32.71%	30.28%	35.89%	36.54%	35.63%
Nike Inc.	43.42%	44.67%	43.84%	44.58%	46.24%	45.97%

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

¹ 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 10,742 ÷ 14,294 = 75.15%

² Click competitor name to see calculations.

Profitability ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Estée Lauder Cos. Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Estée Lauder Cos. Inc., operating profit margin calculation, comparison to benchmarks

	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015
Selected Financial Data (US$ in millions)
Operating income	606	2,313	2,052	1,692	1,610	1,606
Net sales	14,294	14,863	13,683	11,824	11,262	10,780
Profitability Ratio
Operating profit margin¹	4.24%	15.56%	15.00%	14.31%	14.30%	14.90%
Benchmarks
Operating Profit Margin, Competitors²
Colgate-Palmolive Co.	—	22.65%	23.76%	23.22%	25.25%	17.39%
Kimberly-Clark Corp.	—	16.21%	12.06%	18.07%	18.22%	8.68%
Nike Inc.	8.33%	12.20%	12.21%	13.83%	13.91%	13.64%
Operating Profit Margin, Sector
Personal Goods	—	15.47%	14.77%	16.68%	17.22%	13.40%
Operating Profit Margin, Industry
Consumer Goods	—	16.63%	18.32%	18.71%	18.06%	17.36%

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

¹ 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 606 ÷ 14,294 = 4.24%

² Click competitor name to see calculations.

Profitability ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Estée Lauder Cos. Inc.’s operating profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Estée Lauder Cos. Inc., net profit margin calculation, comparison to benchmarks

	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015
Selected Financial Data (US$ in millions)
Net earnings attributable to The Estée Lauder Companies Inc.	684	1,785	1,108	1,249	1,115	1,089
Net sales	14,294	14,863	13,683	11,824	11,262	10,780
Profitability Ratio
Net profit margin¹	4.79%	12.01%	8.10%	10.56%	9.90%	10.10%
Benchmarks
Net Profit Margin, Competitors²
Colgate-Palmolive Co.	—	15.08%	15.44%	13.10%	16.06%	8.63%
Kimberly-Clark Corp.	—	11.69%	7.63%	12.48%	11.90%	5.45%
Nike Inc.	6.79%	10.30%	5.31%	12.34%	11.61%	10.70%
Net Profit Margin, Sector
Personal Goods	—	11.73%	8.15%	12.26%	12.31%	8.89%
Net Profit Margin, Industry
Consumer Goods	—	10.55%	14.41%	13.32%	14.91%	11.92%

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

¹ 2020 Calculation
Net profit margin = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Net sales
= 100 × 684 ÷ 14,294 = 4.79%

² Click competitor name to see calculations.

Profitability ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Estée Lauder Cos. Inc.’s net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

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

	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015
Selected Financial Data (US$ in millions)
Net earnings attributable to The Estée Lauder Companies Inc.	684	1,785	1,108	1,249	1,115	1,089
Stockholders’ equity, The Estée Lauder Companies Inc.	3,935	4,386	4,688	4,384	3,572	3,643
Profitability Ratio
ROE¹	17.38%	40.70%	23.63%	28.49%	31.20%	29.89%
Benchmarks
ROE, Competitors²
Colgate-Palmolive Co.	—	2,023.08%	—	—	—	—
Kimberly-Clark Corp.	—	—	—	362.16%	—	—
Nike Inc.	31.52%	44.57%	19.70%	34.17%	30.67%	25.76%
ROE, Sector
Personal Goods	—	76.52%	48.55%	56.40%	61.23%	42.57%
ROE, Industry
Consumer Goods	—	32.30%	40.53%	36.36%	40.10%	33.13%

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

¹ 2020 Calculation
ROE = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= 100 × 684 ÷ 3,935 = 17.38%

² Click competitor name to see calculations.

Profitability ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Estée Lauder Cos. Inc.’s ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

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

	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015
Selected Financial Data (US$ in millions)
Net earnings attributable to The Estée Lauder Companies Inc.	684	1,785	1,108	1,249	1,115	1,089
Total assets	17,781	13,156	12,567	11,568	9,223	8,239
Profitability Ratio
ROA¹	3.85%	13.57%	8.82%	10.80%	12.08%	13.22%
Benchmarks
ROA, Competitors²
Colgate-Palmolive Co.	—	15.74%	19.74%	15.97%	20.14%	11.57%
Kimberly-Clark Corp.	—	14.11%	9.71%	15.04%	14.83%	6.83%
Nike Inc.	8.10%	16.99%	8.58%	18.23%	17.57%	15.15%
ROA, Sector
Personal Goods	—	15.39%	11.09%	15.63%	16.53%	11.93%
ROA, Industry
Consumer Goods	—	7.97%	10.76%	9.77%	11.16%	9.56%

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

¹ 2020 Calculation
ROA = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Total assets
= 100 × 684 ÷ 17,781 = 3.85%

² Click competitor name to see calculations.

Profitability ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	Estée Lauder Cos. Inc.’s ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Estée Lauder Cos. Inc. (NYSE:EL)

Analysis of Profitability Ratios

Profitability Ratios (Summary)

Gross Profit Margin

Operating Profit Margin

Net Profit Margin

Return on Equity (ROE)

Return on Assets (ROA)