Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

Estée Lauder Cos. Inc., short-term (operating) activity ratios

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Turnover Ratios
Inventory turnover	1.53	1.47	1.53	1.72	1.69	1.76
Receivables turnover	10.96	10.89	9.53	11.97	8.12	9.20
Payables turnover	2.73	2.36	2.27	3.02	2.27	2.41
Working capital turnover	5.49	5.09	3.63	3.85	5.70	4.79
Average No. Days
Average inventory processing period	238	248	238	212	216	208
Add: Average receivable collection period	33	34	38	30	45	40
Operating cycle	271	282	276	242	261	248
Less: Average payables payment period	134	154	161	121	161	152
Cash conversion cycle	137	128	115	121	100	96

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).

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Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Estée Lauder Cos. Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Estée Lauder Cos. Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Estée Lauder Cos. Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Estée Lauder Cos. Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

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Short-term activity ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Estée Lauder Cos. Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Estée Lauder Cos. Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Estée Lauder Cos. Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023.
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Estée Lauder Cos. Inc. cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc., inventory turnover 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)
Cost of sales	4,564)	4,305)	3,834)	3,552)	3,387)	2,844)
Inventory and promotional merchandise	2,979)	2,920)	2,505)	2,062)	2,006)	1,618)
Short-term Activity Ratio
Inventory turnover¹	1.53	1.47	1.53	1.72	1.69	1.76
Benchmarks
Inventory Turnover, Competitors²
Procter & Gamble Co.	6.05	6.09	6.20	6.41	6.93	7.23
Inventory Turnover, Industry
Consumer Staples	8.21	7.60	8.82	8.40	8.24	—

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
Inventory turnover = Cost of sales ÷ Inventory and promotional merchandise
= 4,564 ÷ 2,979 = 1.53

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Estée Lauder Cos. Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Estée Lauder Cos. Inc., receivables turnover 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 sales	15,910)	17,737)	16,215)	14,294)	14,863)	13,683)
Accounts receivable, net	1,452)	1,629)	1,702)	1,194)	1,831)	1,487)
Short-term Activity Ratio
Receivables turnover¹	10.96	10.89	9.53	11.97	8.12	9.20
Benchmarks
Receivables Turnover, Competitors²
Procter & Gamble Co.	14.99	15.59	16.11	16.98	13.67	14.26
Receivables Turnover, Industry
Consumer Staples	35.38	34.89	38.54	37.27	34.73	—

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
Receivables turnover = Net sales ÷ Accounts receivable, net
= 15,910 ÷ 1,452 = 10.96

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Estée Lauder Cos. Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc., payables turnover 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)
Cost of sales	4,564)	4,305)	3,834)	3,552)	3,387)	2,844)
Accounts payable	1,670)	1,822)	1,692)	1,177)	1,490)	1,182)
Short-term Activity Ratio
Payables turnover¹	2.73	2.36	2.27	3.02	2.27	2.41
Benchmarks
Payables Turnover, Competitors²
Procter & Gamble Co.	2.93	2.83	2.70	2.92	3.09	3.31
Payables Turnover, Industry
Consumer Staples	7.10	6.51	6.79	6.85	6.89	—

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
Payables turnover = Cost of sales ÷ Accounts payable
= 4,564 ÷ 1,670 = 2.73

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Estée Lauder Cos. Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc., working capital turnover 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)
Current assets	9,139)	9,298)	9,768)	8,892)	7,212)	6,168)
Less: Current liabilities	6,240)	5,815)	5,298)	5,179)	4,605)	3,310)
Working capital	2,899)	3,483)	4,470)	3,713)	2,607)	2,858)

Net sales	15,910)	17,737)	16,215)	14,294)	14,863)	13,683)
Short-term Activity Ratio
Working capital turnover¹	5.49	5.09	3.63	3.85	5.70	4.79
Benchmarks
Working Capital Turnover, Competitors²
Procter & Gamble Co.	—	—	—	—	—	—
Working Capital Turnover, Industry
Consumer Staples	—	—	—	—	—	—

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
Working capital turnover = Net sales ÷ Working capital
= 15,910 ÷ 2,899 = 5.49

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Estée Lauder Cos. Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc., average inventory processing period 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
Inventory turnover	1.53	1.47	1.53	1.72	1.69	1.76
Short-term Activity Ratio (no. days)
Average inventory processing period¹	238	248	238	212	216	208
Benchmarks (no. days)
Average Inventory Processing Period, Competitors²
Procter & Gamble Co.	60	60	59	57	53	50
Average Inventory Processing Period, Industry
Consumer Staples	44	48	41	43	44	—

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.53 = 238

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Estée Lauder Cos. Inc., average receivable collection period 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
Receivables turnover	10.96	10.89	9.53	11.97	8.12	9.20
Short-term Activity Ratio (no. days)
Average receivable collection period¹	33	34	38	30	45	40
Benchmarks (no. days)
Average Receivable Collection Period, Competitors²
Procter & Gamble Co.	24	23	23	21	27	26
Average Receivable Collection Period, Industry
Consumer Staples	10	10	9	10	11	—

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.96 = 33

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Estée Lauder Cos. Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc., operating cycle calculation, comparison to benchmarks

No. days

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data
Average inventory processing period	238	248	238	212	216	208
Average receivable collection period	33	34	38	30	45	40
Short-term Activity Ratio
Operating cycle¹	271	282	276	242	261	248
Benchmarks
Operating Cycle, Competitors²
Procter & Gamble Co.	84	83	82	78	80	76
Operating Cycle, Industry
Consumer Staples	54	58	50	53	55	—

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 cycle = Average inventory processing period + Average receivable collection period
= 238 + 33 = 271

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Estée Lauder Cos. Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Estée Lauder Cos. Inc., average payables payment period 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
Payables turnover	2.73	2.36	2.27	3.02	2.27	2.41
Short-term Activity Ratio (no. days)
Average payables payment period¹	134	154	161	121	161	152
Benchmarks (no. days)
Average Payables Payment Period, Competitors²
Procter & Gamble Co.	125	129	135	125	118	110
Average Payables Payment Period, Industry
Consumer Staples	51	56	54	53	53	—

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.73 = 134

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Estée Lauder Cos. Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data
Average inventory processing period	238	248	238	212	216	208
Average receivable collection period	33	34	38	30	45	40
Average payables payment period	134	154	161	121	161	152
Short-term Activity Ratio
Cash conversion cycle¹	137	128	115	121	100	96
Benchmarks
Cash Conversion Cycle, Competitors²
Procter & Gamble Co.	-41	-46	-53	-47	-38	-34
Cash Conversion Cycle, Industry
Consumer Staples	3	2	-4	0	2	—

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 238 + 33 – 134 = 137

² Click competitor name to see calculations.

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Short-term activity ratio	Description	The company
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Estée Lauder Cos. Inc. cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc. (NYSE:EL)

Analysis of Short-term (Operating) Activity Ratios

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle