Stock Analysis on Net

Estée Lauder Cos. Inc. (NYSE:EL)

This company has been moved to the archive! The financial data has not been updated since August 18, 2023.

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

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

Microsoft Excel
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).

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.

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.

Inventory Turnover

Estée Lauder Cos. Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
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
Inventory Turnover, Industry
Consumer Staples 7.41 6.96 7.97 7.50 7.42

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.

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

Estée Lauder Cos. Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
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
Receivables Turnover, Industry
Consumer Staples 36.63 35.12 38.75 37.54 34.71

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.

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.

Payables Turnover

Estée Lauder Cos. Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
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
Payables Turnover, Industry
Consumer Staples 7.27 6.61 6.91 7.01 7.11

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

2 Click competitor name to see calculations.

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.

Working Capital Turnover

Estée Lauder Cos. Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
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.

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.

Average Inventory Processing Period

Estée Lauder Cos. Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
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
Average Inventory Processing Period, Industry
Consumer Staples 49 52 46 49 49

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.

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

Estée Lauder Cos. Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
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
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.

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.

Operating Cycle

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

No. days

Microsoft Excel
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
Operating Cycle, Industry
Consumer Staples 59 62 55 59 60

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.

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.

Average Payables Payment Period

Estée Lauder Cos. Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
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
Average Payables Payment Period, Industry
Consumer Staples 50 55 53 52 51

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.

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.

Cash Conversion Cycle

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

No. days

Microsoft Excel
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
Cash Conversion Cycle, Industry
Consumer Staples 9 7 2 7 9

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 + 33134 = 137

2 Click competitor name to see calculations.

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.