Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Cash Flow Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
- Aggregate Accruals
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Profitability Ratios (Summary)
Estée Lauder Cos. Inc., profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
- Gross Profit Margin
- The gross profit margin shows a gradual declining trend over the analyzed period. Starting at approximately 78.78% in late 2018, it consistently decreased, reaching 71.31% by mid-2023. Despite minor fluctuations, the margin's downward trajectory suggests increasing costs or pricing pressures impacting the company's core profitability.
- Operating Profit Margin
- The operating profit margin exhibits significant volatility across the quarters. It started around 15.33% in late 2018, peaked near 16.71% in late 2021, then declined sharply during 2020, hitting lows near 3.81% to 4.24%, likely reflecting external disruptions during that period. The margin recovered moderately post-2020 but remained below earlier peaks, ending at 9.48% in mid-2023, signaling challenges in operational efficiency or increased operating expenses.
- Net Profit Margin
- The net profit margin followed a somewhat variable pattern. Beginning at 8.48% in late 2018, it progressively improved to about 18.53% by early 2022, indicating strong bottom-line profitability. However, the margin declined steadily afterward, dropping to around 6.32% by mid-2023. The interim peak may reflect exceptional items or favorable market conditions, but the subsequent decrease points to pressure on overall profitability.
- Return on Equity (ROE)
- ROE showed a generally positive upward trend with notable volatility. Starting around 26.8% in late 2018, it markedly increased, reaching a peak above 54% in early 2022. This suggests enhanced efficiency in generating shareholder returns during that phase. Following the peak, ROE experienced a downward trend, declining to about 18% by mid-2023, indicating reduced profitability or increased equity base affecting returns.
- Return on Assets (ROA)
- ROA demonstrates a similar pattern to ROE but on a smaller scale. From approximately 9.42% in late 2018, it rose steadily to peak near 15.71% in early 2022, reflecting improved asset utilization efficiency. Post-peak, ROA decreased to around 4.3% by mid-2023, indicating diminished efficiency in generating profit from assets during the later periods.
Return on Sales
Return on Investment
Gross Profit Margin
Estée Lauder Cos. Inc., gross profit margin calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Procter & Gamble Co. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q4 2023 Calculation
Gross profit margin = 100
× (Gross profitQ4 2023
+ Gross profitQ3 2023
+ Gross profitQ2 2023
+ Gross profitQ1 2023)
÷ (Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Sales Trends
- Net sales demonstrated a fluctuating pattern over the analyzed quarters. Initially, there was a gradual increase from September 2018 through December 2019, reaching a peak of $4,624 million. This was followed by a significant decline in early 2020, notably during the second quarter, where sales fell to $2,430 million amid broader market challenges. Recovery was evident from the third quarter of 2020, with sales rising again and achieving a new peak of $5,539 million in December 2021. Subsequently, sales exhibited some volatility but generally maintained levels above $3,500 million toward mid-2023.
- Gross Profit Evolution
- Gross profit tracked closely with net sales fluctuations, reflecting corresponding trends in revenue and cost management. There was strong growth through 2018 and 2019, culminating in a gross profit of $3,583 million in December 2019. Similar to net sales, gross profit experienced a pronounced dip in the first half of 2020, reaching a low of $1,663 million in June 2020. Recovery followed with gross profit surpassing the previous highs by the end of 2021 at $4,316 million in December. The subsequent quarters showed some volatility but sustained relatively high gross profit compared to earlier periods.
- Gross Profit Margin Insights
- The gross profit margin percentage showed a gradual downward trend over the period. Starting above 78% in late 2018, the margin decreased steadily to around 75% by the end of 2019. The margin declined further during the 2020 downturn, dropping to about 75.15% in September 2020 and around 72%-71% in early 2023. This decline suggests increased costs relative to sales or changes in product mix affecting profitability. Despite fluctuations in sales and gross profit, the margin decrease indicates a less favorable cost structure or pricing environment over time.
- Overall Financial Performance Commentary
- The data reflects the company’s sensitivity to external economic conditions, with marked declines in sales and profits during the early 2020 period, likely associated with broader market disruptions. Post downturn, the company achieved notable recovery and growth in sales and gross profit through 2021, reaching record levels. However, the reduction in gross profit margin indicates some pressure on profitability, possibly from higher input costs or competitive pricing dynamics. Sustaining sales growth while managing margin pressure will be critical in future performance evaluations.
Operating Profit Margin
Estée Lauder Cos. Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Procter & Gamble Co. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q4 2023 Calculation
Operating profit margin = 100
× (Operating incomeQ4 2023
+ Operating incomeQ3 2023
+ Operating incomeQ2 2023
+ Operating incomeQ1 2023)
÷ (Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Operating Income
- The operating income exhibited significant fluctuations across the analyzed periods. Starting with solid positive figures in 2018 and early 2019, a sharp decline occurred in the quarter ended June 30, 2019, followed by a significant drop into negative territory in the quarter ended June 30, 2020. This downturn aligns with the broader economic challenges observed globally around that time. Subsequently, operating income rebounded strongly, reaching a peak in December 2021, but has shown a downward trend since then, even turning negative by June 30, 2023. This suggests considerable volatility and challenges in maintaining consistent profitability through the latest quarters.
- Net Sales
- Net sales demonstrated an overall upward trend over the examined time frame, despite some periods of decline. There was strong growth from 2018 through early 2020, followed by a pronounced dip in mid-2020, likely reflecting external market disruptions. After this downturn, sales recovered robustly, surpassing previous highs through 2021 and early 2022. However, from mid-2022 onward, net sales showed some fluctuations with a slight declining tendency in the final reported quarters. These patterns indicate the company experienced recovery phases but faced ongoing demand variability in recent times.
- Operating Profit Margin
- The operating profit margin closely mirrored the trends observed in operating income. Margins were relatively stable and healthy in 2018 and early 2019, with percentages mostly in the mid-teens. A sharp decline occurred in 2019 and reached its lowest points in mid-2020, reflecting operational pressures. Following this, margins improved substantially, attaining peak levels above 18% by the end of 2021 and early 2022. However, starting mid-2022, the margin began to contract, reaching single digits by mid-2023. This decline in profitability margins indicates rising costs or reduced pricing power impacting earnings despite sales levels.
- Overall Insights
- The data indicates that while the company managed to grow top-line sales over the longer term, profitability faced more significant challenges marked by periods of sharp contraction, particularly evident in operating income and margin decline during mid-2020. The subsequent recovery phases were strong, but the recent downward trends in profitability metrics raise concerns about sustained margin pressures. This suggests a need for enhanced operational efficiency or strategic adjustments to stabilize earnings in the face of evolving market dynamics.
Net Profit Margin
Estée Lauder Cos. Inc., net profit margin calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net earnings (loss) attributable to The Estée Lauder Companies Inc. | ||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Procter & Gamble Co. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q4 2023 Calculation
Net profit margin = 100
× (Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q4 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q3 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q2 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q1 2023)
÷ (Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Earnings (Loss) Trend
- Net earnings exhibited notable volatility over the analyzed periods. Initially, quarterly earnings were positive and relatively stable from late 2018 through early 2019, ranging approximately between $500 million and $595 million. A significant downturn occurred in early 2020, with losses reported in the March and June quarters, reaching a low of -$462 million, likely reflecting external adverse conditions during that timeframe. Subsequently, earnings rebounded sharply, peaking above $1 billion in the June 2021 quarter. However, from late 2021 onward, net earnings began to decline again, showing a general downward trend with occasional fluctuations, ultimately turning negative again in the most recent quarter.
- Net Sales Performance
- Net sales showed growth from late 2018 to late 2019, increasing from roughly $3.5 billion to over $4.6 billion. During the first half of 2020, sales sharply declined to about $2.4 billion, coinciding with the period of earnings losses. Following this trough, net sales recovered robustly, reaching an all-time high of approximately $5.5 billion in the December 2021 quarter. After this peak, sales decreased gradually, hovering between $3.6 billion and $4.6 billion in 2022 and early 2023, suggesting some softness in market demand or other operational challenges.
- Net Profit Margin Dynamics
- Profit margin percentages reflect the fluctuations in profitability relative to sales. Initially, margins were between 8% and 12.5% in 2018 and early 2019, demonstrating healthy profitability. Margins diminished markedly during the first half of 2020, aligning with periods of net losses, dropping to around 4-5%. A strong recovery followed, with margins climbing significantly to nearly 18% by mid-2021, indicating improved cost management or favorable product mix. From late 2021 onwards, margins gradually contracted, declining to near 6% by mid-2023, suggesting increased cost pressures or waning pricing power.
- Summary of Observations
- The company experienced a period of strong growth and profitability until early 2020, followed by a significant impact resulting in losses and decreased sales, concurrent with a broader challenging market environment. Post-2020, there was a robust rebound in both sales and profitability, culminating in record performance in late 2021. However, more recently, both earnings and margins have shown a downward trajectory, indicating emerging headwinds or operational difficulties impacting financial results. The trends suggest a cyclical pattern influenced by external factors and highlight the need for strategic responses to sustain growth and profitability.
Return on Equity (ROE)
Estée Lauder Cos. Inc., ROE calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net earnings (loss) attributable to The Estée Lauder Companies Inc. | ||||||||||||||||||||||||||
| Stockholders’ equity, The Estée Lauder Companies Inc. | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||
| Procter & Gamble Co. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q4 2023 Calculation
ROE = 100
× (Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q4 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q3 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q2 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q1 2023)
÷ Stockholders’ equity, The Estée Lauder Companies Inc.
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to The Estée Lauder Companies Inc.
-
The net earnings exhibit notable volatility across the reported quarters. Starting at 500 million USD in September 2018, earnings increased to a peak of 595 million in September 2019 before sharply declining to losses in the first half of 2020, with a low of minus 462 million USD in June 2020. This period reflects a significant impact, likely influenced by external disruptions.
Recovery occurred in the second half of 2020 and throughout 2021, with earnings peaking again at 1088 million USD in December 2021. However, from 2022 onwards, net earnings manifested a declining trend, dropping substantially by mid-2023 to negative figures again at minus 33 million USD, signaling renewed challenges or operational pressures.
- Stockholders’ Equity
-
Stockholders’ equity demonstrated relative stability with moderate fluctuations. Initially, equity hovered around 4400 to 4600 million USD through 2018 and 2019, followed by a dip in mid-2020 to a low of 3935 million USD, coinciding with the net earnings downturn in that period.
From late 2020 through 2021, equity increased consistently, reaching a high of approximately 6218 million USD at year-end 2021. Subsequently, equity levels decreased gradually during 2022 and into 2023, ending near 5585 million USD by mid-2023. This pattern suggests a degree of resilience with cyclical adjustments aligned with profitability changes.
- Return on Equity (ROE)
-
The ROE metric shows a correlation with net earnings fluctuations. ROE was robust in late 2018 and 2019, maintaining values around 37% to above 40%. During the earnings downturn in early 2020, ROE plummeted sharply to approximately 17% in June 2020 and stayed at reduced levels under 20% during the quarters reflecting losses.
ROE rebounded strongly in 2021, reaching a peak above 52% in the first quarter of 2022. This indicates enhanced profitability and efficient equity utilization during this recovery phase. However, similar to net earnings, ROE exhibited a downward trend in 2022 and was considerably lower in 2023, falling to near 18% by mid-year, highlighting emerging profitability challenges.
- Overall Analysis
-
The financial data indicates that the company experienced significant earnings volatility from 2018 through mid-2023. The steep earnings decline and negative results in early 2020 correspond to a broader market or operational disruption period, followed by a substantial recovery period peaking in late 2021.
Stockholders’ equity largely mirrored earnings trends, with periods of equity reduction coinciding with losses but generally maintaining a growth trajectory during recovery phases. Return on equity metrics aligned closely with earnings, showing sharp declines during downturns and strong performance during recoveries.
The recent downward trend in net earnings and ROE through 2022 and into 2023, despite relatively stable equity levels, may suggest emerging operational challenges, market conditions, or strategic adjustments impacting profitability and returns to shareholders.
Return on Assets (ROA)
Estée Lauder Cos. Inc., ROA calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net earnings (loss) attributable to The Estée Lauder Companies Inc. | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||
| Procter & Gamble Co. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q4 2023 Calculation
ROA = 100
× (Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q4 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q3 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q2 2023
+ Net earnings (loss) attributable to The Estée Lauder Companies Inc.Q1 2023)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance over the observed quarters shows several distinct trends and fluctuations. Net earnings attributable to the company exhibit notable volatility. Initial quarters present positive and relatively stable earnings, with peaks observed around December 2020 and June 2021. However, a significant loss is recorded during March and June 2020, coinciding with broader market disruptions during that period. Post that dip, earnings recovered sharply, reaching one of the highest points in December 2021 before experiencing a gradual decline and returning to negative territory by June 2023.
Total assets reveal a general upward trajectory throughout the period, indicating expansion or asset accumulation. Starting from approximately $12.5 billion in September 2018, assets steadily increased, surpassing $22 billion by the end of 2022 and continuing to grow into mid-2023. Despite some minor fluctuations, the asset base shows strong growth, implying increased investment or retained earnings being deployed into asset acquisition.
The Return on Assets (ROA) percentage aligns with the net earnings trend but reflects the efficiency of asset utilization to generate profit. ROA starts relatively high, experiences a decline around early 2020 aligning with the dip in earnings, hitting its lowest points mid-2020. Subsequently, ROA rebounds significantly in late 2020 and through 2021, reaching peak efficiency levels nearing 16%. However, a declining trend emerges starting in 2022, with ROA dropping to about 4.3% by mid-2023, indicating decreasing profitability relative to the asset base.
- Net Earnings
- Showcased pronounced fluctuations, with sharp losses during early 2020 followed by strong recovery and peak performance in late 2021, then a steady decline culminating in net losses again mid-2023.
- Total Assets
- Displayed consistent growth across all quarters, more than doubling over the observed span, suggesting sustained asset investment and expansion.
- Return on Assets (ROA)
- Correlated with net earnings patterns, with a steep drop during 2020 interruptions, robust recovery in 2021, then a gradual efficiency decline leading into 2023.
In summary, while asset growth remains strong and consistent, profitability and asset utilization efficiency have experienced volatility, heavily influenced by early 2020 external factors and subsequent recovery phases. Recent quarters suggest pressure on profit margins despite the growing asset base, warranting close monitoring of operational efficiency and market conditions.