Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Estée Lauder Cos. Inc. (NYSE:EL)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

Estée Lauder Cos. Inc., profitability ratios

Microsoft Excel LibreOffice Calc
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.

Gross Profit Margin

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

Microsoft Excel LibreOffice Calc
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.

Operating Profit Margin

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

Microsoft Excel LibreOffice Calc
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.

Net Profit Margin

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

Microsoft Excel LibreOffice Calc
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.

Return on Equity (ROE)

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

Microsoft Excel LibreOffice Calc
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.

Return on Assets (ROA)

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

Microsoft Excel LibreOffice Calc
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.