Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Estée Lauder Cos. Inc., profitability ratios
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
| 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. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Estée Lauder Cos. Inc. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Estée Lauder Cos. Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Estée Lauder Cos. Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Estée Lauder Cos. Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Gross Profit Margin
Estée Lauder Cos. Inc., gross profit margin calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 11,346) | 13,432) | 12,381) | 10,742) | 11,476) | 10,839) | |
| Net sales | 15,910) | 17,737) | 16,215) | 14,294) | 14,863) | 13,683) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 71.31% | 75.73% | 76.36% | 75.15% | 77.21% | 79.22% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Procter & Gamble Co. | 47.86% | 47.43% | 51.25% | 50.32% | 48.63% | 48.73% | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 11,346 ÷ 15,910 = 71.31%
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. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
Estée Lauder Cos. Inc., operating profit margin calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 1,509) | 3,170) | 2,618) | 606) | 2,313) | 2,052) | |
| Net sales | 15,910) | 17,737) | 16,215) | 14,294) | 14,863) | 13,683) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 9.48% | 17.87% | 16.15% | 4.24% | 15.56% | 15.00% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Procter & Gamble Co. | 22.11% | 22.21% | 23.63% | 22.14% | 8.11% | 20.52% | |
| Operating Profit Margin, Industry | |||||||
| Consumer Staples | 7.38% | 8.47% | 8.40% | 8.12% | 7.40% | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 1,509 ÷ 15,910 = 9.48%
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. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Net Profit Margin
Estée Lauder Cos. Inc., net profit margin calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings attributable to The Estée Lauder Companies Inc. | 1,006) | 2,390) | 2,870) | 684) | 1,785) | 1,108) | |
| Net sales | 15,910) | 17,737) | 16,215) | 14,294) | 14,863) | 13,683) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 6.32% | 13.47% | 17.70% | 4.79% | 12.01% | 8.10% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Procter & Gamble Co. | 17.87% | 18.38% | 18.79% | 18.36% | 5.76% | 14.59% | |
| Net Profit Margin, Industry | |||||||
| Consumer Staples | 5.55% | 5.87% | 5.64% | 5.88% | 3.76% | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
Net profit margin = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Net sales
= 100 × 1,006 ÷ 15,910 = 6.32%
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. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
Estée Lauder Cos. Inc., ROE calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings attributable to The Estée Lauder Companies Inc. | 1,006) | 2,390) | 2,870) | 684) | 1,785) | 1,108) | |
| Stockholders’ equity, The Estée Lauder Companies Inc. | 5,585) | 5,590) | 6,057) | 3,935) | 4,386) | 4,688) | |
| Profitability Ratio | |||||||
| ROE1 | 18.01% | 42.75% | 47.38% | 17.38% | 40.70% | 23.63% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Procter & Gamble Co. | 31.33% | 31.64% | 30.85% | 28.00% | 8.26% | 18.64% | |
| ROE, Industry | |||||||
| Consumer Staples | 29.82% | 29.95% | 27.27% | 27.08% | 16.85% | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
ROE = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= 100 × 1,006 ÷ 5,585 = 18.01%
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. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Assets (ROA)
Estée Lauder Cos. Inc., ROA calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings attributable to The Estée Lauder Companies Inc. | 1,006) | 2,390) | 2,870) | 684) | 1,785) | 1,108) | |
| Total assets | 23,415) | 20,910) | 21,971) | 17,781) | 13,156) | 12,567) | |
| Profitability Ratio | |||||||
| ROA1 | 4.30% | 11.43% | 13.06% | 3.85% | 13.57% | 8.82% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Procter & Gamble Co. | 12.13% | 12.58% | 11.99% | 10.79% | 3.39% | 8.24% | |
| ROA, Industry | |||||||
| Consumer Staples | 8.59% | 8.81% | 7.91% | 7.73% | 5.14% | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 2023 Calculation
ROA = 100 × Net earnings attributable to The Estée Lauder Companies Inc. ÷ Total assets
= 100 × 1,006 ÷ 23,415 = 4.30%
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. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |