Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Estée Lauder Cos. Inc. (NYSE:EL)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Turnover Ratios
Inventory turnover 1.72 1.69 1.76 1.65 1.73 1.73
Receivables turnover 11.97 8.12 9.20 8.48 8.95 9.18
Payables turnover 3.02 2.27 2.41 2.92 3.04 3.31
Working capital turnover 3.85 5.70 4.79 5.52 7.29 4.62
Average No. Days
Average inventory processing period 212 216 208 222 211 211
Add: Average receivable collection period 30 45 40 43 41 40
Operating cycle 242 261 248 265 252 251
Less: Average payables payment period 121 161 152 125 120 110
Cash conversion cycle 121 100 96 140 132 141

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

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.’s inventory turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Estée Lauder Cos. Inc.’s receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Estée Lauder Cos. Inc.’s payables turnover ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Estée Lauder Cos. Inc.’s working capital turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

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.’s number of days of receivables outstanding deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Estée Lauder Cos. Inc.’s operating cycle deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 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.’s number of days of payables outstanding increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
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.’s cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in millions)
Cost of sales 3,552  3,387  2,844  2,437  2,181  2,101 
Inventory and promotional merchandise 2,062  2,006  1,618  1,479  1,263  1,216 
Short-term Activity Ratio
Inventory turnover1 1.72 1.69 1.76 1.65 1.73 1.73
Benchmarks
Inventory Turnover, Competitors2
Colgate-Palmolive Co. 3.86 4.55 5.05 5.06 5.19
Kimberly-Clark Corp. 6.47 6.94 7.11 6.54 6.88
Nike Inc. 2.87 3.85 3.89 3.77 3.60 3.81
Inventory Turnover, Sector
Personal Goods 3.34 4.05 4.27 4.12 4.16
Inventory Turnover, Industry
Consumer Goods 5.18 5.73 6.19 5.93 6.02

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

1 2020 Calculation
Inventory turnover = Cost of sales ÷ Inventory and promotional merchandise
= 3,552 ÷ 2,062 = 1.72

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.’s inventory turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in millions)
Net sales 14,294  14,863  13,683  11,824  11,262  10,780 
Accounts receivable, net 1,194  1,831  1,487  1,395  1,258  1,175 
Short-term Activity Ratio
Receivables turnover1 11.97 8.12 9.20 8.48 8.95 9.18
Benchmarks
Receivables Turnover, Competitors2
Colgate-Palmolive Co. 13.03 10.90 11.10 10.44 10.77
Kimberly-Clark Corp. 8.56 8.15 8.54 7.89 8.36
Nike Inc. 13.61 9.16 10.41 9.34 9.99 9.11
Receivables Turnover, Sector
Personal Goods 11.73 8.99 9.84 9.01 9.53
Receivables Turnover, Industry
Consumer Goods 13.65 13.25 14.35 13.22 13.55

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

1 2020 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net
= 14,294 ÷ 1,194 = 11.97

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.’s receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in millions)
Cost of sales 3,552  3,387  2,844  2,437  2,181  2,101 
Accounts payable 1,177  1,490  1,182  835  717  635 
Short-term Activity Ratio
Payables turnover1 3.02 2.27 2.41 2.92 3.04 3.31
Benchmarks
Payables Turnover, Competitors2
Colgate-Palmolive Co. 4.63 5.15 5.17 5.09 5.40
Kimberly-Clark Corp. 3.69 4.06 4.04 4.13 4.43
Nike Inc. 9.41 8.29 8.97 9.30 7.94 7.76
Payables Turnover, Sector
Personal Goods 5.33 5.22 5.40 5.68 5.60
Payables Turnover, Industry
Consumer Goods 4.14 4.46 4.70 4.54 4.76

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

1 2020 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 3,552 ÷ 1,177 = 3.02

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.’s payables turnover ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in millions)
Current assets 8,892  7,212  6,168  4,964  4,225  4,469 
Less: Current liabilities 5,179  4,605  3,310  2,823  2,681  2,136 
Working capital 3,713  2,607  2,858  2,141  1,545  2,333 
 
Net sales 14,294  14,863  13,683  11,824  11,262  10,780 
Short-term Activity Ratio
Working capital turnover1 3.85 5.70 4.79 5.52 7.29 4.62
Benchmarks
Working Capital Turnover, Competitors2
Colgate-Palmolive Co. 111.30 34.39 12.55 14.71
Kimberly-Clark Corp.
Nike Inc. 3.05 4.52 4.00 3.24 3.35 3.17
Working Capital Turnover, Sector
Personal Goods 5.96 9.23 7.71 6.00 6.69
Working Capital Turnover, Industry
Consumer Goods 18.18 29.22 32.63

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

1 2020 Calculation
Working capital turnover = Net sales ÷ Working capital
= 14,294 ÷ 3,713 = 3.85

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.’s working capital turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data
Inventory turnover 1.72 1.69 1.76 1.65 1.73 1.73
Short-term Activity Ratio (no. days)
Average inventory processing period1 212 216 208 222 211 211
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Colgate-Palmolive Co. 95 80 72 72 70
Kimberly-Clark Corp. 56 53 51 56 53
Nike Inc. 127 95 94 97 101 96
Average Inventory Processing Period, Sector
Personal Goods 109 90 85 89 88
Average Inventory Processing Period, Industry
Consumer Goods 70 64 59 62 61

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.72 = 212

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 LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data
Receivables turnover 11.97 8.12 9.20 8.48 8.95 9.18
Short-term Activity Ratio (no. days)
Average receivable collection period1 30 45 40 43 41 40
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Colgate-Palmolive Co. 28 33 33 35 34
Kimberly-Clark Corp. 43 45 43 46 44
Nike Inc. 27 40 35 39 37 40
Average Receivable Collection Period, Sector
Personal Goods 31 41 37 41 38
Average Receivable Collection Period, Industry
Consumer Goods 27 28 25 28 27

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.97 = 30

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.’s number of days of receivables outstanding deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Operating Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data
Average inventory processing period 212 216 208 222 211 211
Average receivable collection period 30 45 40 43 41 40
Short-term Activity Ratio
Operating cycle1 242 261 248 265 252 251
Benchmarks
Operating Cycle, Competitors2
Colgate-Palmolive Co. 123 113 105 107 104
Kimberly-Clark Corp. 99 98 94 102 97
Nike Inc. 154 135 129 136 138 136
Operating Cycle, Sector
Personal Goods 140 131 122 130 126
Operating Cycle, Industry
Consumer Goods 97 92 84 90 88

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 212 + 30 = 242

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.’s operating cycle deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Average Payables Payment Period

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

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data
Payables turnover 3.02 2.27 2.41 2.92 3.04 3.31
Short-term Activity Ratio (no. days)
Average payables payment period1 121 161 152 125 120 110
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Colgate-Palmolive Co. 79 71 71 72 68
Kimberly-Clark Corp. 99 90 90 88 82
Nike Inc. 39 44 41 39 46 47
Average Payables Payment Period, Sector
Personal Goods 68 70 68 64 65
Average Payables Payment Period, Industry
Consumer Goods 88 82 78 80 77

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.02 = 121

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.’s number of days of payables outstanding increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Cash Conversion Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data
Average inventory processing period 212 216 208 222 211 211
Average receivable collection period 30 45 40 43 41 40
Average payables payment period 121 161 152 125 120 110
Short-term Activity Ratio
Cash conversion cycle1 121 100 96 140 132 141
Benchmarks
Cash Conversion Cycle, Competitors2
Colgate-Palmolive Co. 44 42 34 35 36
Kimberly-Clark Corp. 0 8 4 14 15
Nike Inc. 115 91 88 97 92 89
Cash Conversion Cycle, Sector
Personal Goods 72 61 54 66 61
Cash Conversion Cycle, Industry
Consumer Goods 9 10 6 10 11

Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).

1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 212 + 30121 = 121

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.’s cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020.