Microsoft Excel LibreOffice Calc

Estée Lauder Cos. Inc. (EL)


Analysis of Profitability Ratios

Low level of difficulty


Profitability Ratios (Summary)

Estée Lauder Cos. Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Return on Sales
Gross profit margin 77.21% 79.22% 79.39% 80.63% 80.51% 80.32%
Operating profit margin 15.56% 15.00% 14.31% 14.30% 14.90% 16.66%
Net profit margin 12.01% 8.10% 10.56% 9.90% 10.10% 10.98%
Return on Investment
Return on equity (ROE) 40.70% 23.63% 28.49% 31.20% 29.89% 31.24%
Return on assets (ROA) 13.57% 8.82% 10.80% 12.08% 13.22% 15.30%

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).

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 2017 to 2018 and from 2018 to 2019.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Estée Lauder Cos. Inc.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Estée Lauder Cos. Inc.’s net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Estée Lauder Cos. Inc.’s ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
ROA A profitability ratio calculated as net income divided by total assets. Estée Lauder Cos. Inc.’s ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Gross Profit Margin

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

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in millions)
Gross profit 11,476  10,839  9,387  9,081  8,680  8,811 
Net sales 14,863  13,683  11,824  11,262  10,780  10,969 
Profitability Ratio
Gross profit margin1 77.21% 79.22% 79.39% 80.63% 80.51% 80.32%
Benchmarks
Gross Profit Margin, Competitors2
Colgate-Palmolive Co. 59.39% 60.05% 60.04% 58.62% 58.51%
Kimberly-Clark Corp. 30.28% 35.89% 36.54% 35.63% 33.88%
Nike Inc. 44.67% 43.84% 44.58% 46.24% 45.97% 44.77%

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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 11,476 ÷ 14,863 = 77.21%

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 2017 to 2018 and from 2018 to 2019.

Operating Profit Margin

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

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in millions)
Operating income 2,313  2,052  1,692  1,610  1,606  1,828 
Net sales 14,863  13,683  11,824  11,262  10,780  10,969 
Profitability Ratio
Operating profit margin1 15.56% 15.00% 14.31% 14.30% 14.90% 16.66%
Benchmarks
Operating Profit Margin, Competitors2
Colgate-Palmolive Co. 23.76% 23.22% 25.25% 17.39% 20.59%
Kimberly-Clark Corp. 12.06% 18.07% 18.22% 8.68% 12.78%
Nike Inc. 12.20% 12.21% 13.83% 13.91% 13.64% 13.24%
Operating Profit Margin, Sector
Personal Goods 14.77% 16.68% 17.22% 13.40% 15.29%
Operating Profit Margin, Industry
Consumer Goods 9.78% 13.54% 12.78% 11.75% 10.72%

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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 2,313 ÷ 14,863 = 15.56%

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 2017 to 2018 and from 2018 to 2019.

Net Profit Margin

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

Microsoft Excel LibreOffice Calc
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. 1,785  1,108  1,249  1,115  1,089  1,204 
Net sales 14,863  13,683  11,824  11,262  10,780  10,969 
Profitability Ratio
Net profit margin1 12.01% 8.10% 10.56% 9.90% 10.10% 10.98%
Benchmarks
Net Profit Margin, Competitors2
Colgate-Palmolive Co. 15.44% 13.10% 16.06% 8.63% 12.62%
Kimberly-Clark Corp. 7.63% 12.48% 11.90% 5.45% 7.74%
Nike Inc. 10.30% 5.31% 12.34% 11.61% 10.70% 9.69%
Net Profit Margin, Sector
Personal Goods 8.15% 12.26% 12.31% 8.89% 10.03%
Net Profit Margin, Industry
Consumer Goods 8.18% 9.62% 10.50% 9.13% 7.91%

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
Net profit margin = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Net sales
= 100 × 1,785 ÷ 14,863 = 12.01%

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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Return on Equity (ROE)

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

Microsoft Excel LibreOffice Calc
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. 1,785  1,108  1,249  1,115  1,089  1,204 
Stockholders’ equity, The Estée Lauder Companies Inc. 4,386  4,688  4,384  3,572  3,643  3,855 
Profitability Ratio
ROE1 40.70% 23.63% 28.49% 31.20% 29.89% 31.24%
Benchmarks
ROE, Competitors2
Colgate-Palmolive Co. 190.39%
Kimberly-Clark Corp. 362.16% 209.33%
Nike Inc. 44.57% 19.70% 34.17% 30.67% 25.76% 24.88%
ROE, Sector
Personal Goods 48.55% 56.40% 61.23% 42.57% 45.93%
ROE, Industry
Consumer Goods 22.22% 24.72% 28.06% 24.52% 25.89%

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
ROE = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= 100 × 1,785 ÷ 4,386 = 40.70%

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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Return on Assets (ROA)

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

Microsoft Excel LibreOffice Calc
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. 1,785  1,108  1,249  1,115  1,089  1,204 
Total assets 13,156  12,567  11,568  9,223  8,239  7,869 
Profitability Ratio
ROA1 13.57% 8.82% 10.80% 12.08% 13.22% 15.30%
Benchmarks
ROA, Competitors2
Colgate-Palmolive Co. 19.74% 15.97% 20.14% 11.57% 16.20%
Kimberly-Clark Corp. 9.71% 15.04% 14.83% 6.83% 9.83%
Nike Inc. 16.99% 8.58% 18.23% 17.57% 15.15% 14.48%
ROA, Sector
Personal Goods 11.09% 15.63% 16.53% 11.93% 13.71%
ROA, Industry
Consumer Goods 5.14% 6.00% 6.87% 6.24% 6.23%

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
ROA = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Total assets
= 100 × 1,785 ÷ 13,156 = 13.57%

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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.