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)
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
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
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
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
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
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
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
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
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
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 + 33 – 134 = 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. |