Analysis of Profitability Ratios
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Estée Lauder Cos. Inc., profitability ratios
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. |
Gross Profit Margin
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. | 60.82% | 59.42% | 59.39% | 60.05% | 60.04% | — | |
Kimberly-Clark Corp. | 35.64% | 32.71% | 30.28% | 35.89% | 36.54% | — | |
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. |
Operating Profit Margin
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. | 23.59% | 22.65% | 23.76% | 23.22% | 25.25% | — | |
Kimberly-Clark Corp. | 16.95% | 16.21% | 12.06% | 18.07% | 18.22% | — | |
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% | — | |
Operating Profit Margin, Industry | |||||||
Consumer Goods | — | 13.12% | 13.83% | 15.13% | 14.25% | — |
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. |
Net Profit Margin
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. | 16.36% | 15.08% | 15.44% | 13.10% | 16.06% | — | |
Kimberly-Clark Corp. | 12.29% | 11.69% | 7.63% | 12.48% | 11.90% | — | |
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% | — | |
Net Profit Margin, Industry | |||||||
Consumer Goods | — | 8.77% | 11.59% | 8.53% | 12.03% | — |
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. |
Return on Equity (ROE)
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. | 362.72% | 2,023.08% | — | — | — | — | |
Kimberly-Clark Corp. | 375.72% | — | — | 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% | — | |
ROE, Industry | |||||||
Consumer Goods | — | 26.80% | 34.61% | 25.11% | 34.45% | — |
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. |
Return on Assets (ROA)
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. | 16.93% | 15.74% | 19.74% | 15.97% | 20.14% | — | |
Kimberly-Clark Corp. | 13.42% | 14.11% | 9.71% | 15.04% | 14.83% | — | |
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% | — | |
ROA, Industry | |||||||
Consumer Goods | — | 6.06% | 8.09% | 5.90% | 8.70% | — |
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. |