Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
Estée Lauder Cos. Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Estée Lauder Cos. Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).
The analysis of the quarterly financial ratios reveals several notable trends over the observed periods:
- Gross Profit Margin
- The gross profit margin exhibited a gradual decline from approximately 79.22% in September 2017 to 71.31% by June 2023. This trend suggests a slow but steady decrease in the efficiency of production or cost control over time, potentially impacting overall profitability.
- Operating Profit Margin
- The operating profit margin showed considerable fluctuations. It started around 15% in late 2017 to early 2018, peaked briefly at over 18% in late 2021 and mid-2022, but experienced marked declines notably in 2020 during the onset of the pandemic, dropping to lows near 3.81% in December 2020. Post-2020, the margin partially recovered but did not return to prior peak levels, indicating operational challenges during the pandemic and a slow recovery trajectory.
- Net Profit Margin
- The net profit margin mirrored the operational profit trends with initial robustness, reaching a high of 18.53% in mid-2022. It experienced a significant dip around 2020 down to roughly 4.38% in December 2020, reflecting the adverse impact of external factors during that period. Subsequent quarters showed a moderate recovery, but margins remained below pre-2020 highs by mid-2023.
- Return on Equity (ROE)
- Return on equity delineated a strong upward trend from below 24% in late 2017 to peaks over 54% by late 2021. This increase signals effective utilization of shareholder equity and robust profitability during this phase. However, a decline commenced post-2021, with the ratio falling to approximately 18% by mid-2023, potentially due to reduced profitability or increased equity base.
- Return on Assets (ROA)
- The return on assets followed a trajectory similar to ROE but at a lower scale, peaking near 15.71% in mid-2022. The ratio experienced contraction during the pandemic period, reaching lows around 3.42% in late 2020, followed by a recovery period, and then a decline by mid-2023 to 4.3%. These movements indicate variations in asset utilization efficiency relative to net income generation over time.
In summary, the financial ratios reflect a period of stable profitability and efficiency prior to 2020, disrupted significantly during the pandemic with sharp declines in profitability and returns. Subsequent recovery efforts have yielded partial improvements, yet recent trends suggest ongoing challenges in sustaining pre-pandemic performance levels.
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 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).
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
- Net sales exhibited a general upward trend from late 2017 through to late 2021, with some fluctuations. Starting at approximately $3.27 billion in September 2017, sales increased steadily, peaking around December 2021 at $5.54 billion. Thereafter, a decline is observable into 2022 and the first half of 2023, with net sales decreasing to approximately $3.61 billion by June 2023.
- Gross Profit
- Gross profit generally followed the pattern of net sales, increasing from $2.56 billion in September 2017 to a peak of approximately $4.32 billion by December 2021. However, the data reveals a sharper dip in gross profit during the early quarters of 2020, corresponding with notable global disruptions, before recovering to higher levels in late 2020 and 2021. Similar to net sales, gross profit decreased through 2022 and the first half of 2023, ending at around $2.45 billion.
- Gross Profit Margin
- Gross profit margin showed a relatively stable but slightly declining trend over the observed period. From initial margins in the high 70% range around 79% in 2018, margins gradually decreased to just above 71% by mid-2023. This downward trend suggests increasing cost pressures or shifts in product mix affecting profitability per dollar of sales.
- Key Observations
- The data indicates a sustained growth phase in both sales and gross profit up to 2021, followed by a decline through 2022 and into 2023. The dip in early 2020 likely reflects external challenges impacting performance during that period. Meanwhile, the gradual erosion in gross profit margin points to a potential trend of rising costs or competitive pricing pressures, warranting further operational or strategic review. Overall, while sales and gross profit recovered post-2020 disruptions, the recent downward momentum suggests caution for forthcoming quarters.
Operating Profit Margin
Estée Lauder Cos. Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).
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.
- Net Sales
- Net sales exhibit a generally positive trend with fluctuations over the observed periods. Beginning from approximately 3,274 million USD in late 2017, sales increased to a peak of 5,539 million USD in late 2021. However, sales declined afterwards, falling to around 3,609 million USD by mid-2023. The data reflects seasonal variability with some quarters posting significantly higher sales than others.
- Operating Income
- Operating income shows substantial volatility throughout the periods. Initial values were positive, with amounts generally increasing up to late 2019, where a notable decline occurs, including negative values during mid-2020. This decline coincides with a broader economic context affecting many industries. Post-2020, operating income recovered sharply, reaching highs above 1 billion USD by late 2021. Thereafter, operating income again showed a declining tendency, with some quarters returning negative or marginal values by mid-2023.
- Operating Profit Margin
- The operating profit margin trends generally upward from early measurements near 15% to a peak exceeding 18% in late 2021, indicating improved operational efficiency relative to sales. Margins declined steeply during 2020, reaching a low near 3.8%, reflecting the impact on profitability during that period. Following recovery phases, margins stabilized in the range of 9-12% by mid-2023, suggesting ongoing challenges in sustaining previous profitability levels.
- Overall Observations
- The data reveals a cyclical pattern impacted by external factors around 2020, which led to a pronounced dip in profitability and operating income, despite sales declines. The subsequent recovery was strong but not uniformly sustained. Fluctuations in operating profit margins parallel changes in operating income rather than sales, indicating variable cost management or pricing pressures. The recent downward trend in operating income and margin despite consistent sales suggests increased costs or operational challenges.
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 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).
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.
The financial data indicates significant fluctuations and trends in earnings, sales, and profit margins over the analyzed quarters.
- Net Earnings (Loss) Attributable to The Estée Lauder Companies Inc.
- The net earnings demonstrate considerable variability, with periods of strong profitability interspersed with negative earnings. From late 2017 to late 2019, net earnings generally show positive values with peaks such as 595 million USD in September 2019. However, starting in March 2020, there is a sharp decline resulting in negative earnings in two consecutive quarters (-6 million USD and -462 million USD). Recovery begins later in 2020, with earnings rising to 523 million USD by September 2020 and continuing an upward trend to a peak exceeding 1 billion USD in June 2021. Following this peak, there is a gradual decline with some volatility evident in the quarters up to mid-2023, including again a slight negative earning (-33 million USD) in the latest quarter.
- Net Sales
- Net sales show growth from 2017 through 2019, moving from approximately 3.27 billion USD in the third quarter of 2017 to a peak of 4.62 billion USD in the fourth quarter of 2019. This is followed by a marked decrease in early 2020, coinciding with global disruptions, dropping to a low near 2.43 billion USD in the second quarter of 2020. A recovery trend is observable starting from the third quarter of 2020, with sales steadily increasing and reaching new heights above 5.5 billion USD by the fourth quarter of 2021. However, sales appear to stabilize and then slightly decline after this period, fluctuating around 3.6 to 4.6 billion USD in 2022 and the first half of 2023.
- Net Profit Margin
- Profit margins are available for a shorter timeframe but reveal an increasing trend from the third quarter of 2017 onwards, rising from around 8.1% to peaks above 18% in 2021. This improvement in profitability corresponds with the sales recovery and earnings growth noted. Beginning in 2022, the net profit margin declines progressively, moving downward to approximately 6.3% by mid-2023, indicating decreased profitability relative to revenue during this recent timeframe.
Overall, the data reflects the impact of external challenges around early 2020, followed by a strong rebound in sales and earnings, reaching record levels through 2021. This recovery period also features a significant improvement in profit margins, suggesting enhanced operational efficiency or favorable market conditions. The latter part of the period indicates a moderation in both sales growth and profitability, with earnings volatility and declining margins suggesting emerging pressures or market adjustments.
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 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).
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) Trend
- The net earnings attributable to the company exhibit significant fluctuations over the examined periods. Starting with a positive value of 427 million USD in September 2017, earnings showed variability, peaking at 1,018 million USD in June 2021. Notably, there are quarters with negative earnings, particularly at the start of 2020, where the company faced losses of -6 million USD in March and -462 million USD in June, reflecting potential adverse events or market disruptions. Post these losses, the company demonstrated recovery with earnings rebounding to 873 million USD by December 2020. Subsequent quarters show continued volatility, with earnings ranging widely, including a notable decline to -33 million USD in June 2023. Overall, earnings demonstrate a cyclical pattern with significant peaks and troughs.
- Stockholders' Equity Trend
- Stockholders’ equity displays relative stability with a general upward trend from 4,731 million USD in September 2017 to a peak of 6,218 million USD in December 2021. This increase indicates an accumulation of retained earnings and possibly equity financing activities. However, a decline follows, decreasing to 5,585 million USD by June 2023. Despite the downturn, the equity base remains elevated compared to the initial periods, suggesting ongoing capital retention and a strong equity position overall.
- Return on Equity (ROE) Analysis
- Return on equity reveals an overall growth trajectory despite some gaps in early data points. The ROE grew from approximately 23.63% in March 2018 to a peak exceeding 54% in June 2022. This increasing trend indicates enhanced profitability relative to equity, signifying effective management of shareholder capital. The period of COVID-19 impact around 2020 saw a dip in ROE to approximately 13.75%, reflecting lower profitability. Subsequent recovery pushed ROE upward, although a downward movement appears in the last quarters, declining to around 18% by June 2023. This suggests recent challenges in maintaining the high profitability levels achieved in earlier quarters.
- General Insights
- The data suggest that the company experienced a significant business impact during early 2020, likely related to global economic disruptions, reflected in net losses and reduced ROE. Despite this, the company managed to recover earnings and profitability in subsequent quarters, surpassing previous highs in mid-2021 to mid-2022. A slight decline in net earnings and ROE in the most recent quarters may imply emerging headwinds or market adjustments. The equity base remained strong throughout, supporting the company’s financial stability during these fluctuations.
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 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).
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.
- Net Earnings (Loss) Attributable to The Estée Lauder Companies Inc.
- The net earnings exhibited considerable volatility over the analyzed quarters. From a positive value of 427 million USD in September 2017, earnings fluctuated with notable peaks and troughs. Significant positive earnings were recorded in several quarters, such as 573 million USD in December 2018, 1,018 million USD in June 2021, and 1,088 million USD in December 2021. However, some quarters experienced substantial losses, including a sharp decrease to -462 million USD in June 2020, and minor negative earnings in March 2020 and June 2023. The trend demonstrates periods of strong profitability interrupted by occasional sharp declines, indicating potential impacts from market conditions or extraordinary events.
- Total Assets
- Total assets consistently increased throughout the period, starting from 12,202 million USD in September 2017 and reaching 23,415 million USD by June 2023. The growth trend indicates expansion and accumulation of resources over time, with minor fluctuations around mid-2020 but a general upward trajectory. This increase in asset base suggests ongoing investment and growth initiatives within the company.
- Return on Assets (ROA)
- Return on Assets showed varying performance but generally remained positive where data is available. Beginning at 8.82% in March 2018, ROA improved to a peak of 15.71% in June 2021. Following this peak, there was some decline, with ROA falling to 4.3% by June 2023. These changes in ROA reflect variations in profitability relative to asset levels, with a strong performance phase in 2021 followed by a downward adjustment in subsequent periods.
- Summary
- Overall, the financial analysis reveals a company experiencing growth in total assets accompanied by fluctuating profitability. The net earnings indicate susceptibility to both favorable and adverse conditions, with earnings peaking notably in mid-2021. Meanwhile, the ROA trend correlates with the earnings pattern, showing elevated efficiency in asset utilization around 2021 and some reduction thereafter. The ongoing asset growth suggests sustained investment, while the earnings volatility and ROA variations may be related to market dynamics or external influences such as economic shifts or exceptional events affecting the company’s performance during specific quarters.